Morning Call Script - 22 Dec 2023
Overnight asset drivers & the impending data calendar
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What’s Moved Overnight
The Santa rally for some individual stocks has ended abruptly
Nike down over 10% as sales in China and Europe weaken and they cut 2024 revenue guidance (BBG - Nike Seeks $2 Billion in Savings as Sales Outlook Weakens)
Chinese regulators have added new restrictions on gaming sites with a raft of new measures to curb spending and addiction. This has wiped out billions in value of Tencent and NetEase shares (BBG - China Unveils Latest Gaming Curbs)
Japanese inflation has softened -0.1% MoM and YoY has dropped from 3.3% to 2.8%. Core was in line with expectations of 2.5%, dropping from prior 2.9%. Nikkei sits 33125 and USDJPY 142.20 - both relatively unchanged.
With one leg out the door for the holidays, its been a quiet APAC session for assets
FX - EUR 1.1000, AUD 0.6780, CNH 7.1535, GBP 1.2690
Fi - US2s @ 4.35% and 10s @ 3.90%
Commodities - Crude $74.40, Brent $80 and Gold $2050
The final key US data point of the year arrives this afternoon with US PCE. This was one of the focus points of yesterday's Read on the Trading Floor and has been flagged as softening further by JPow. Given the thin holiday liquidity conditions, I hope he was right as he’s raised expectations that the number will be close to 3.1%.
Look out for tomorrow’s concise weekend read, recapping what the street consumed over the week, which articles were of focus and which topics were researched. Macro narratives will be interwoven with recommended reading as well as “Top 10 reads of the past week” and "Top 5 podcasts of the past week". Landing in the inbox of PRO subscribers around lunchtime.
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Have a great day, and keep smiling!
Podcast for the Commute
WSJ - Inside an iPhone Heist
The Day Ahead
GBP (07:00): Retail Sales
GBP (07:00): GDP Growth QoQ Final Q3
CAD (13:30): GDP MoM
USD (13:30): Core PCE Price Index
USD (13:30): Durable Goods Orders
USD (15:00): Michigan Consumer Sentiment
USD (15:00): Michigan Consumer Inflation Expectations
Stay informed throughout the day with our new commentary channel (‘Intraday Market Colour’) highlighting key notes, topics du jour, and HarksterHQ’s market updates around key data points and headlines.
Available on the HarksterPRO Research Platform.
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