Market Commentary – December 6, 2021

Kevin Jock

6th December 2021

U.S. equity markets ended the day and the week lower on new concerns about the omicron variant of COVID-19 and a weaker than expected jobs report. For the week, the Dow lost 0.9%, the S&P 500 fell 1.2% and the Nasdaq finished 2.6 lower. Tesla shares sank 6.42% after CEO Elon Musk sold $1bn worth of his stock holdings in the company.

European shares fell on Friday, hitting session lows after a downturn in U.S. stocks on a tech slide. The EURO STOXX 50 index closed down 0.68% lower, while both CAC 40 and DAX slid 0.44% and 0.61% respectively.

In Asia, China stocks rose on Monday as Premier Li Keqiang said reserve requirement ratios will be cut in a timely way, with the CSI300 index rose 0.6% at the end of the morning session. In HK, the Hang Seng index dropped 1.26% to 23,466.39 points as Didi Global Inc’s decision to delist from the New York Stock Exchange. Meanwhile, Alibaba said it will reorganize its international and domestic e-commerce businesses and replace its CFO.

Oil prices rose by more than $1 a barrel on Monday with the Brent crude trading at $72.2 during the Asian morning period. Gold was up on Monday morning as well, as investors continuing to digest a mixed U.S. report. While bitcoin prices calmed down Sunday following a wild sell-off on Saturday that saw the cryptocurrency’s price plunge more than 20% to the low of $42.2K.


Figure 1 (Source: IS Prime) CC.BTC.USD Daily : Bitcoin plunges to just above 42K on Sunday then partially retraces its losses to currently fluctuate around 48K.

Headliner to Review

  • The latest data sent mixed signals for what happened in US labor markets in November, with the non-farm payroll only add 210K jobs, which is much lower than the expectations of 553K. While the unemployment rate dropped dramatically to 4.2% as labor force participation grew and employment rose by more than 1 million.
  • In November, the US ISM Services PMI registered another all-time high of 69.1 percent, 2.4 percentage points above October’s reading of 66.7 percent, the former all-time high.

Headliner to Watch

  • Reserve Bank of Australia will announce its cash rate on Tuesday with the market believe that they will hold the rate at a record-low of 0.1%. In term of the statement, the central bank is likely to highlight the interval between building economic momentum and faster price gains as well as renewed risks from the new virus variant.
  • ZEW Economic Sentiment index in the Euro area is forecasted to be 22.4 compared to 25.9 from previous month.

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Antony Tan
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