Rise and shine Traderade family
We have an interesting day ahead of us, as the market waits for Chair Powell’s speech at the Brookings Institute tonight. Word on the street is that he will be attending in his hawk suit.
We also have JOLTs and the Beige Book coming out today.
Asia and Australia
China's official November PMI falls to lowest reading since April and in a move towards easing the manufacturing hub of Guangzhou has lifted lockdowns from the majority of their districts. Chinese stocks and the Yuan continue to gain.
Zhengzhou, home to Apple largest manufacturing plant in China, lifts lockdown
Europe, Middle East, Africa
Eurozone Inflation abated for the first time since May 2021. The ECB is still skeptical about inflation peaking and is not looking at an immediate change in their rate hike policy. Inflation fell to 10% in November from a record 10.6% in October.
UK will relax ring-fencing of banks as part of its effort to deregulate the City of London after Brexit. Ring-fencing requires banks to separate retail and investment banking activities to protect consumers from shocks to other activities in major banking groups.
The Americas
Chair Powell’s speech is going to be one to watch. The Brookings Institute is famous for studying inflation and economic concepts - it will be interesting to see if Chair Powell continues to reinforce the 2% goal given that financial conditions have eased somewhat in the last month.
Canada GDP grew 2.9% in Q3 beating expectations
Canadian banks are reporting earnings. Royal Bank of Canada (RBC) announced the acquisition of HSBC’s Canadian arm. They just announced earnings this morning coming out with an EPS beat and Revenue beat but, as with the US banks, provisions for credit losses are increasing.
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