DAILY MARKET UPDATE

December 1, 2022

The Asia Pacific markets traded higher overnight, carrying on the optimism behind North America’s rally as Fed Chairman Powell confirmed smaller rate hikes could start in December. European bourses mostly rose Thursday reaching their highest levels in six months. North American stock markets turned in a relatively lackluster performance during trading on Thursday. A steep drop by Salesforce weighed on the Dow, with the software company plunging by 8.3 percent after announcing Bret Taylor will step down as Vice Chair and Co-CEO, effective January 31, 2023. The lack of direction shown by the broader market came as traders looked ahead to the Labor Department’s closely watched monthly jobs report on Friday. Economists currently expect employment to jump by 200,000 jobs in November after shooting up by 261,000 jobs in October, while the unemployment rate is expected to hold at 3.7 percent. The data could affect the outlook for interest rates, although the impact may be somewhat muted following Federal Reserve Chair Jerome Powell’s remarks on Wednesday hinting at a slowdown in the pace of rate hikes as soon as next month. Traders were also digesting another slew of U.S. economic data, including a report from the Institute for Supply Management showing manufacturing activity contracted for the first time in over two years in the month of November. The Commerce Department also released a report showing personal income climbed by 0.7 percent in October after rising by 0.4 percent in September. Economists had expected another 0.4 percent increase. A reading on inflation said to be preferred by the Fed showed core consumer prices, which exclude food and energy prices, edged up by 0.2 percent in October after climbing by 0.5 percent in September. Economists had expected prices to rise by 0.3 percent. The annual rate of core consumer price growth also slowed to 5.0 percent in October from 5.2 percent in September, coming in line with estimates. In the bond market, treasuries moved sharply higher, extending the rally seen late in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, plunged 17.4 basis points to a two-month closing low of 3.529 percent.

* Nikkei +0.92%

* Shanghai Composite +0.45%
* Hang Seng +1.42%
* DAX +0.65%
* FTSE -0.19%
* CAC +0.23%
* DJIA -0.56%
* S&P 500 -0.09%
* Nasdaq +0.13%
* Russell 2000 -0.26%
* BSD Global Tech Hedge Fund +1.01%