Rise and shine everyone.

As everyone returns from a long holiday in the US, markets are set to have some uptick in volume. The US announced new trade restrictions against Chinese semiconductor equipment companies, pushing US bond yields higher and weighing on equity futures.

Asian markets started the week with modest gains, although movements varied across regions. The USD/JPY climbed past 150 but later fell below 149.50 after BOJ Governor Ueda warned about yen weakness. We’re seeing some recovering since then. Meanwhile, the Indian Rupee hit a record low with a drop in 5-year bond yields to levels not seen since April 2022 amid Trump comments on BRICS.

China’s 10-year government bond yield fell below 2.00%, marking a record low, while Japan’s bond yields rose slightly, with the 2-year JGB reaching its highest point since 2008.

China’s manufacturing PMI data for November indicated a second month of expansion, with consumer goods demand and external orders improving. Korea’s exports grew for the 14th consecutive month, driven by record semiconductor shipments. Elsewhere in Asia, PMIs generally aligned with prior data, with the Philippines seeing its best expansion since mid-2022.

US Black Friday sales showed strong growth, with Mastercard reporting robust retail performance and Adobe Analytics highlighting record e-commerce spending.

In Europe, the euro weakened amid dovish ECB commentary. Political tensions in France rose, with PM Barnier facing opposition to his budget, risking a confrontation with Marine Le Pen’s National Rally.

US political headlines stirred further with reports that President Biden might issue a pardon for his son, Hunter Biden, despite earlier denials from the White House.

The only earnings of note today is Zscaler after market close.

Chart of the Day

BofA foresees a Goldilocks scenario for next year. They expect the market to go from Recovery in 2024 to Boom in 2025.

Calendars

(news taken from Reuters, FT, Bloomberg; Calendar from Trading Economics)