Global equities fall with Treasury yields

In the US, major equity indices closed mostly lower on Monday, ending a four-week winning streak, as investors assessed Black Friday spending amid concerns over consumer activity due to high interest rates and slower job growth.  Transportation and energy sectors weakened, but the 10-year Treasury yield’s decline to 4.39% supported overall market performance.  In Europe, the Stoxx 50 index slipped 0.4%, driven primarily by weakness in the healthcare sector.  Notable movers included BASF and Evotec, declining after a downgrade, and Casino, which fell after expressing interest in selling its stores.  

Summary for 28.11.2023 

• Asian markets saw mixed performance on Tuesday, with Australia’s ASX rising 0.6% on strong gains in real estate and mining shares, while South Korea’s Kospi climbed 0.7%, despite a drop in consumer confidence.  Chinese shares remained flat, with the Shanghai Composite showing little movement, while Hong Kong’s Hang Seng shed 0.3%, driven by losses in property companies amid investor impatience over additional government support for the sector. 
• US equity futures are holding steady, awaiting key economies releases while Europe markets are set for a muted start at the dollar declines and Treasuries maintain gains. 
• Oil prices rebounded this morning as investors anticipated an OPEC+ meeting, with expectations of extended and deepened production cuts to counter oversupply concerns.  Positive responses followed reports of potential output reductions, with speculation that Saudi Arabia and Russia may extend voluntary supply cuts until at least Q1 2024.  
• Australian retail sales unexpectedly declined by 0.2% month-over-month in October, marking the first drop since June, with consumers delaying discretionary spending ahead of Black Friday sales.  Most categories saw lower sales, including household goods, clothing, and department stores, while food retailing experienced a modest increase. 
• Sales of new single-family homes in the US dropped by 5.6% in October, reaching an annualised rate of 679,000, significantly below the expected 723,000, as high mortgage rates impacted buyer affordability.  Sales declined notably in West and Midwest but increased in the Northeast and South, while the median price was $409,300, and the average sales price was $487,000. 
• Chinese fashion company Shein has confidentially filed for an initial public offering in the US, aiming to go public in 2024 with lead underwriters Goldman Sachs, JPMorgan Chase, and Morgan Stanley.  The fast-fashion giant, valued at over $60 billion in a May fundraising, could potentially become one of the most valuable China-founded companies to debut on the US stock market, surpassing ride-hailing giant Didi Global’s $68 billion valuation in 2021. 
• Virgin Atlantic is set to make a historic London to New York flight powered exclusively by sustainable aviation fuel (SAF) on a Boeing 787 Dreamliner, showcasing its commitment to environmental sustainability in the aviation industry.  Despite SAF’s potential to reduce carbon emissions by up to 70%, economic challenges persist, with its production currently accounting for less than 0.1% of global aviation fuel consumption. 
• According to an analysis of health records and data, overweight or obese adults taking Eli Lilly’s Mounjaro lost more weight and shed pounds faster compared to those using Novo Nordisk’s rival drug, Ozempic.  The study found that within one year, 42.3% of patients on Mounjaro had lost at least 15% of their weight, while only 19.3% of those on Ozempic achieved the same result, and after accounting for risk factors, Mounjaro users were more likely to achieve various weight loss milestones.  
• The US National Labour Relations Board has dismissed claims by Workers United that Tesla illegally fired Autopilot software employees in its Buffalo gigafactory to thwart union organising.  While the board rejected the union’s complaint about firings, it found merit in separate claims that Tesla maintained an unlawful technology-use rule and solicited grievances from workers to impede union support. 
• Amazon has become the largest delivery business in the US, surpassing both UPS and FedEx in parcel volumes, delivering over 4.8 billion packages before Thanksgiving in 2022, according to internal data.  While excelling in one-way residential deliveries, Amazon still lacks the extensive worldwide reach and comprehensive service offerings of is competitors, such as UPS and FedEx. 
• Sanofi and Regeneron plan to submit Dupixent, a drug known for treating asthma and dermatitis, to the FDA by December after positive Phase 3 trial results for chronic obstructive pulmonary disease (COPD).  Dupixent, if approved, could become the first biologic treatment for COPD, offering a significant new treatment option in this therapeutic area.