Business News: Asia and Europe to release key data
Markets have a heavy day ahead with a hoard of data arriving from Europe, including the euro area balance of trade and the European Central Bank President Christine Lagarde’s speech.
In Asia, China received some key data, favourable unemployment data and not so favourable industrial production data. Chinese indices slumped in trade today. India expects the balance of trade data while Japan expects a slew of gross domestic product (GDP) growth rate and related figures.
Main commodities in the red except for natural gas with silver losing over 1.9% in early trade.
In the cryptoverse, Bitcoin sticks to the green and its dominance over the cryptocurrency sphere increased 0.2%.
Top business and economic news today
- China’s good, bad and ugly — unemployment, retail sales and other data: Key economic data on China was released this morning, tanking both its indices, Shanghai and Hang Seng, as industrial production came in at 4.2%, an inch lower than the expected 4.6%, unemployment rate for the month stays flat while retail sales and industrial production for October beat estimates.
- India rides the festive mood: Month-on-month vehicle sales figures bounce back up in October with a perked up 41.4%, well over the estimated drop of over 31%.
- India’s wholesale inflation rate and balance of trade seen tumbling into the red: Estimated to be an inch lower than last month’s 10.9%, the wholesale price inflation is expected to be muted while the balance of trade data for October is expected to dink into the red, down $22.6bn, a drop from the deficit of $19.9bn last month.
- Goldman Sachs downgrades Indian equities valuation: Banking giant Goldman Sachs downgraded Indian stocks to “market weight”, citing complications in the country’s stocks that rallied while the broader MSCI Emerging Markets Index dimmed, on the backdrop of flexible monetary policy, improved vaccinations and economic recovery.
- Euro area balance of trade expected to be dim: Released by Eurostat, the eurozone’s trade data is estimated to be harshly lower at 4.8 billion, a fall from 6.5 billion last month.
- Japan’s Industrial production drops, GDP growth rate missed estimates: Japan’s GDP growth rate for the third quarter failed to meet expectations after a downward revised 0.4% growth in the previous quarter due to the resurfacing of Covid-19 cases. GDP contracted a whopping 3% on an annualised basis. Japan’s GDP capital expenditure tumbled to -3.8%, against an expected 2.2% uplift. The Japanese industrial production was expected to jump 8.8 but instead lost 2.3%, in line with the 2.3% reported last month.
- US stocks sluggish: All three major US indices, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite lost to end Friday’s session below previous Friday’s close, a first dim week after five consecutive weeks in the green.
- Stocks: Asian stocks head up, as investors cautiously watch US stock futures that shot up in early trade though sentiment remained low due to disappointing Chinese and Japanese data.
- Oil: Oil prices dip about 0.6% in trade today while natural gas shoots up over 1.36%.
- Gold: Gold inches 0.34% lower, tumbling from a five-month high as the greenback steadily gained.
- Forex: USD/EUR heads up from yearly low, as chatter over US Federal Reserve policy being hawkish boost sentiment. Concerns over inflation and US stimulus linger over the market.
- Cryptocurrency: Heavyweights bitcoin and ethereal gain almost 1%, while altcoins Tether and Cardano take a hit in the crypto-verse today. Volumes dropped almost 9.75%.
What to watch out for today
- India Whole Price Index Fuel: Estimate touches 1.14% while wholesale price fee index forecast to be at 24.81% in October. India’s balance of trade is expected to widen deficit while export estimates stay lower than last month and import estimates arrive higher than the $55.37 billion reported last month.
- France 3-month, 6-month and 12-month auctions: All auction values expected to be in the negative territory with 3-month at 0.782%.
- Earnings expected today: British American Tobacco, Lonza Group, Warner Music, UCB, POSCO
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