Canada Balance of Payments for 3Q; Economic Club of New York event with Federal Reserve Bank of New York President John Williams
Today's Headlines/Must Reads
- Chinese Stocks Drop as Covid Protests Intensify, Cases Surge
- Globalized Supply Chain Brings More-Turbulent Food Prices
- Oil Prices Face Fresh Volatility With New Russia Sanctions, OPEC Decision
- Disney's Iger Faces Troubled Animation Market as 'Strange World' Bombs
Follow WSJ markets coverage here .
Stock-index futures were lower on Monday, while Treasurys rallied, as investors evaluated mounting protests in China against the government's zero-tolerance approach to Covid-19, as well as a surge in new infections in the country.
Shares in mainland China and Hong Kong opened sharply lower but had pared losses by the close, as thousands of protesters in major Chinese cities, including Beijing and Shanghai, called for President Xi Jinping to resign.
The unprecedented protests were spurred by frustration with China's strict lockdowns as part of its "zero-Covid" policy.
"Unsurprisingly, there is more significant uncertainty in China's reopening trajectory, which is getting priced into markets on reports of protests over the weekend," SPI Asset Management said.
"Still, this morning's price action could reverse quickly if it becomes clear that reports of protests will not lead to tighter Covid restrictions," SPI said.
Natixis said the demonstrations have complicated the direction of China's zero-Covid policies.
"The Chinese government is not the type of authority that wants people to challenge it. They may do something to loosen the rules a little bit, but there is also the risk that they will decide to actually strengthen the measures even further," Natixis said.
However, Grow Investment Group said some investors see the protests as a good excuse to take profits after gains of more than 17% in the Hang Seng so far in November.
Stocks to Watch
Shares in Apple were down 1.3% premarket on reports it could suffer a production shortfall of 6 million iPhone pros.
The data calendar is set to pick up this week and could boost the dollar by adding to the view the Fed is set to continue raising interest rates, ING said.
"The more important data releases come on Thursday and Friday, where any uptick in the core PCE price data or strong job numbers could support potentially hawkish rhetoric from Powell and send U.S. yields and the dollar higher again," ING said.
Sterling's gains against the dollar won't last given the prospect of a global recession and the U.K.'s substantial current account deficit, ING said.
The current inversion in global yield curves--where shorter-term government bond yields are higher than longer-term yields--are a "likely harbinger of recession," ING added. "And with its large current account deficit, sterling should be expected to remain vulnerable."
Fresh selling interest in GBP/USD could emerge near the 200-day moving average at 1.2177 or at best the 50% retracement of the 2021-22 drop at 1.2300, ING said.
The implosion of Sam Bankman-Fried's FTX continues to reverberate through the cryptocurrency industry. Here's the market action:
-Bitcoin fell about 2.2% compared with its late Sunday level, to stand at about $16,204
-Ethereum traded at about $1,172, down about 3.3% from 24 hours earlier, according to CoinDesk
-Tether traded at close to parity with the dollar, with the biggest stablecoin trading at around $0.999
The inversion of the Treasury yield curve has hit a "new cycle extreme," Saxo said, with the spread between 2-year and 10-year yields hitting minus 80 basis points in a growing sign of a likely oncoming recession..
"The risk-off mood is driving strong safe-haven flows into Treasurys, as the 10-year benchmark traded to new local lows below 3.65%, with little room left to the pivotal 3.50% level," Saxo said.
Crude prices were almost 3% lower in Europe after Covid-19 cases surged in China, and following uncertainty about how the Chinese government will respond to an eruption of protests against its zero-tolerance approach.
"There are worries that the demand could deteriorate even further if the government steps in harder and orders an even stronger lockdown," Saxo Bank said. "That's really the nervousness in the market."
Talks are due to continue this week about a price cap on Russian oil by the European Union, while the OPEC+ cartel meets next weekend. The EU's ban on Russian crude imports begins on Dec. 5.
Read Oil Prices Face Fresh Volatility With New Russia Sanctions, OPEC Decision
Base metals fell close to 1% in early London trading, while gold was little changed, weighed by a stronger dollar and China uncertainty.
"Moves continue to be dominated by the FX and macro," Marex said.
TODAY'S TOP HEADLINES
Apple will produce 6 million fewer iPhone pros amid unrest in key China manufacturing hub: report
Unrest at one of China's biggest manufacturing centers may cause a production shortfall this year of possibly 6 million Apple iPhone Pros, according to a source cited by Bloomberg.
The Foxconn Technology TW:2354 facility in Zhengzhou, which makes the majority of Apple's premium and most popular phones, has been struggling with staff agitation for weeks as Chinese workers rebel against the Communist regime's draconian COVID-19 lockdown policy.
Disney's Robert Iger Faces Troubled Animation Market as 'Strange World' Bombs
LOS ANGELES-Add Walt Disney Co.'s animation woes to Robert Iger's to-do list.
The company's latest release, "Strange World," this weekend became the second consecutive Disney animated offering to bomb at the box office, collecting a measly $18.6 million since opening Wednesday.
World's Top-Selling Drug Going Off Patent Means Big Bucks for Middlemen
Starting next year the highest-grossing drug of all time, AbbVie's Humira, will finally face competition from copycat biologics in the U.S.
Yet the makers of the complex generics known as biosimilars won't necessarily be the biggest winners. The top beneficiaries could instead be the middlemen such as Cigna and CVS Health, which will negotiate and dispense the drugs to patients.
Thousands of Bottles and Cups for Toddlers Recalled Over Lead Poisoning Risk
A company that makes natural products for babies has recalled about 10,500 bottles and cups after learning children could be exposed to material containing lead if the base breaks off, the U.S. Consumer Product Safety Commission said.
Green Sprouts Inc. voluntarily recalled the products after realizing that the base of some of its stainless-steel bottles and cups can break and expose soldering that contains lead, the commission said. Lead is toxic if ingested by young children and can have adverse health effects.
Rain, Wind Slow Otherwise Smooth Thanksgiving Travel
Airlines and airports reported generally smooth operations during Thanksgiving week, though poor weather caused some problems on what is expected to be the holiday's busiest travel day.
Overall, calm weather throughout most of the country helped keep flight disruptions to a minimum. From Monday through Saturday, airlines scrapped 262 domestic flights-0.2% of what was scheduled, according to FlightAware, a flight tracking site.
'Knives Out' Sequel Delivers in Theaters for Streaming Giant Netflix
Streaming pioneer Netflix Inc. gave movie theaters something to be thankful for this year.
The streaming platform's "Glass Onion: A Knives Out Mystery" made $9.2 million between Friday and Sunday, or an average of $13,200 per screen, a higher per-screen performance than any other movie in the U.S. and Canada this weekend, according to a person familiar with the matter.
Exxon Mobil Has a Potash Problem in the Permian Basin
A vital crop nutrient that lies underground near oil and natural-gas reserves is holding back Exxon Mobil Corp.'s development of a key asset in the booming Permian Basin.
Unlike many of its rivals in the largest U.S. oil patch, the Texas oil company shares a sizable chunk of its land with mining companies that extract potash and other minerals used to produce fertilizer from underground mines, blocking drillers' direct access to bounties of oil-soaked rocks.
Restaurants, Grocery Stores Battle Over Consumers' Stretched Dollars
Restaurants and supermarkets are ramping up competition for Americans' mealtimes, as consumers gird for a souring economy while food bills continue to rise.
Many restaurants are promoting deals they said are aimed at giving consumers more value for their dollars, while raising menu prices. Supermarkets are stocking more low-price staples and offering specials on prepared food that companies said are targeted toward shoppers who are rethinking how many times they eat out each week.
American Casino Giants Win 10-Year Macau License Renewals
HONG KONG-Six casino operators in Macau won provisional licenses to continue operating in the Chinese gambling hub for the next 10 years, the local government said, while rejecting a bid from an outsider to enter the market.
The winning companies include affiliates of three American casino giants, Las Vegas Sands Corp., MGM Resorts International and Wynn Resorts Ltd. The licenses of three local rivals were also renewed. They are held by Galaxy Entertainment Group, SJM Holdings Ltd. and Melco Resorts & Entertainment Ltd.
Elon Musk Champions Twitter Fact-Checking Feature That Corrects Him
As Elon Musk works quickly to reshape Twitter Inc. and realize his vision for a platform more focused on free speech, one feature is gaining prominence: Community Notes.
(MORE TO FOLLOW) Dow Jones Newswires