Bitcoin crash, Omicron worries, inflation bets – 5 things to know
Here are five things you need to know for Monday, December 6:
1.- Stock Futures Mixed Amid Omicron, Inflation Concerns
U.S. equity futures trended cautiously higher on Monday, as the dollar extended gains against its global peers and oil prices rebounded steadily, as investors entered the week watching the ‘Omicron spread evolution while closing inflation data monitoring ahead of a key release later this week.
Dr Anthony Fauci, the country’s foremost infectious disease expert, said on Sunday that data from South Africa, where the new variant was first discovered, indicates that Omicron may induce symptoms milder than expected, although its rapid spread continues to worry virologists around the world. .
Omicron’s concerns have also been linked to bets on a more hawkish Federal Reserve, which warned last week that cutting its bond-buying plan – the first of many steps towards global interest rates higher – could accelerate in the face of a faster inflation outlook. .
Weaker-than-expected employment data on Friday, which showed only 210,000 new positions added in November, has so far failed to temper those bets, with traders eyeing the November CPI release of Friday.
On Wall Street, futures contracts linked to the Dow Jones Industrial Average show an opening bell gain of 90 points while those linked to the S&P 500 are valued for a 1 point rise on the upside. Futures contracts linked to the tech-driven Nasdaq Composite show modest drop of 115 points early in trading as benchmark 10-year T-bill yields hold 1.40%, in trading day by day.
2. – Evergrande faces a specter by default as president summoned to Beijing
The China Evergrande group plunged to its lowest level on Monday after the indebted property developer faced $ 342.5 million in payments to creditors after its chairman was summoned by authorities in Beijing.
Evergrande has struggled to raise funds through asset sales, while slowing down demand from creditors with statements of support from Chinese authorities, as he faces a mountain of debt maturities. related to some $ 300 billion in past borrowings. The slow burn has already led to contagion in the country’s real estate sector, with little rival Sunshine 100 China Holdings defaulting on a $ 170 million payment on Monday and Kaisa Group Holdings failing to convince creditors to ‘agree to a debt restructuring last week.
The concerns were broad enough to trigger some form of interest rate easing from the People’s Bank of China for only the second time this year on Monday, as shares in the region fell amid concerns over both the indebted real estate sector and overvalued technology stocks.
Evergrande shares closed 19.56% lower in Hong Kong at an all-time low of HK $ 1.81 each.
3. – Bitcoin Crash crushes the crypto markets
Bitcoin prices were under pressure again on Monday after another wild weekend for the global cryptocurrency market which topped its collective market value by more than $ 1 billion.
Bitcoin, which hit an all-time high of just under $ 60,000 last month, traded at $ 41,967 each on Saturday as investors – many of whom are said to have made purchases with borrowed money – have pulled money out of the crypto markets amid the broader decline in risk appetite over Omicron concerns around the world.
Many local Bitcoin exchanges also closed leveraged positions over the weekend, accelerating the price decline in other markets and pulling rival coins such as Ether – which is down 18.5. % from its November 10 high – significantly lower.
Bitcoin prices were last seen 3.8% lower from Sunday levels and changed hands at $ 47,440.50 each.
4. – Kohl’s under pressure to separate the e-commerce division
Kohl’s Company (KSS) – Get the report from Kohl’s Corporation shares surged higher in pre-market trading following a Wall Street Journal report suggesting the retailer may consider separating its e-commerce division from its core business.
Activist hedge fund Engine Capital LP has asked Kohl’s management to consider selling or separating the e-commerce division, arguing it could reach $ 12.4 billion, a premium of nearly 70% compared to Friday’s closing value for the entire group. .
Kohl’s said digital sales were up 6% from a year ago in the third quarter and 33% from 2019 levels, with CEO Michelle Gass telling investors on September 30 that digital retailing and physical “are mutually reinforcing, together delivering an exceptional customer experience through a seamless omnichannel integration of offerings and amenities.”
Kohl’s shares were marked 02.2% higher in pre-market trading to indicate an opening bell price of $ 49.50 each.
5. – Biden Mulling Diplomatic Boycott of the China Winter Games
China warned the United States on Monday that a diplomatic boycott of the Winter Olympics in Beijing would result in “countermeasures” that could damage political and trade relations between the world’s two largest economies.
CNN reported on Sunday that President Joe Biden would announce the boycott, which would see athletes compete under the American flag but prevent government officials from attending, later this week. The Games are scheduled to start on February 4
The Chinese Foreign Ministry called the boycott calls “general public”, adding that any measure to limit participation “would affect dialogue and cooperation between China and the United States in important areas.”
Biden told reporters in November that a diplomatic boycott was “something we are considering.”