Market Commentary – December 1, 2021

Kevin Jock

2nd December 2021

Global stock prices slumped on Tuesday with the S&P 500 index closed down 1.9%, erasing its gains on Monday. The Nasdaq index down 1.6% at the bell. The equities sell-off enlarged after Fed chair Powell signaled that he would support accelerating the US central bank’s monetary tightening program to combat soaring inflation.

In Europe, major indices such as Euro STOXX 50 and FTSE 100 closed down by 1.13% and 0.71% respectively, due to the testimony from the Fed chair. The travel and leisure sector led losses, down 2.8%, taking monthly losses to 20.6%, the worst month since March 2020.

Japanese shares rose on Wednesday morning with shipping and auto stocks leading the rebound, as the Nikkei index rose 0.75% before mid-day close. On the other hand, gambling group Suncity Group Holdings has shutted all of its VIP gaming rooms in Macau as the CEO was arrested on links with cross-border gambling, with the group’s stock price plunged by 48% on Tuesday to a record low after being suspended from trade a day earlier.

Oil prices bounced with Brent crude, rising to nearly $72 as of today, after it reaches $68.44 in yesterday’s low. Bitcoin price bounced back slightly from the previous day to currently trade at around $57K. While the exchange rate of USDHKD has continued to approach 7.80 as the dollar strengthened.


Figure 1 (Source: IS Prime) IDX.HK.50 Daily : Harsh COVID policy’s has outflow’s accelerate especially amid the rise of Omnicron variant.

Headliner to Review

  • The Chinese manufacturing index climbed out of contraction at 50.1 from 49.2 in November, beating analysts’ expectations. The strong data suggests China’s economy may be heating up again following a lull in growth through the summer months.
  • The Canadian real GDP edged up 0.1% in September, as declines largely concentrated in manufacturing, construction and retail trade were more than offset by broad-based expansions in services-producing industries as well as in mining and oil extraction.

Headliner to Watch

  • Newest unemployment change in Spain is due to release on Thursday, forecasted to increase by 5,300 compared to a decrease of 700 from the previous month.
  • Opec+ meeting will commence in this week, where the producer group will decide whether to pause its plans to increase supply in the coming months in order to prop up an increasingly bearish market.

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Antony Tan
Kerry Man