U.S. SEC Orders Public Companies to Detail Exposures to “Distressed Crypto Entities”

Yesterday, U.S. equities posted solid gains for the first time this week as investors bought up stocks that had been beaten down recently. Tech stocks, which have struggled lately, advanced. Amazon (AMZN) shares gained 2%. Shares of Apple (AAPL), Cisco Systems (CSCO), Microsoft (MSFT), and Meta Platforms (META) added 1%. Shares of Nvidia (NVDA) and other chip companies also advanced.

ExxonMobil (XOM), in its turn, said it anticipates profit and cash flow growth will double by 2027, and it’s boosting investment in projects aimed at reducing carbon emissions. The company is also increasing its stock buyback program. The energy giant, enjoying its fanfare return to the Dow Jones index, announced a 5Yr corporate plan, which included projections that upstream earnings potential will double from 2019 levels, and its Products Solution division profit will nearly triple. ExxonMobil also indicated that it will raise spending on initiatives to lower emissions by 15% to $17 billion. Annual capital investments will remain at $20 billion to $25 billion.

Today, The U.S. Bureau of Labor Statistics is expected to say that PPI rose 0.2% MoM in November. That's unchanged from October’s cooler-than-expected print. On an annual basis, prices paid by wholesalers are anticipated to jump 7.2%, down sharply from an 8.0% in October and the fifth straight month of slowing growth. Meanwhile, according to WSJ, The Securities and Exchange Commission is requesting public companies to provide detail their exposure to distressed crypto entities following the collapse of trading platform FTX and its affiliates. In a notice posted to its website yesterday, the SEC said companies may be required corresponding disclosure obligations related to the direct or indirect impact that recent crypto bankruptcies may have had on their businesses.

Major stock markets across Europe kicked off the last trading day of the week with moderate gains as investors are cautious expecting next week's Federal Reserve policy decision to moderate as promised. In focus will be the European Central Bank and the Bank of England, BoE, as well. Commenting on the economic situation across the Eurozone, Bank of France Governor Francois Villeroy de Galhau warned the bloc could face a “temporary (!) recession in the coming quarters”. As of 11:15 p.m. CET, Frankfurt's DAX rose 0.17% while the British FTSE 100 gained 0.06% but the French CAC 40 remained virtually unchanged. The Euro Stoxx 50 climbed by 0.23% at the same time. The euro and the pound Sterling made tiny gains against the greenback to sell for 1.05573 and 1.22504, respectively.

Asian markets were mixed on European Friday’s morning as optimism about China's economic reopening continues to outweigh concerns about rising interest rates and a possible recession. The mood was slightly better in Hong Kong, where investor sentiment has been buoyed by China's decision to shift away from its nearly 3Yr zero-Covid policy of lockdowns and mass testing that has battered the economy. JPMorgan strategist Marko Kolanovic added that he “remains positive on China, due to favorable monetary conditions as well as an eventual full reopening and end of Covid”.

Apart from Hong Kong that finished the session with a solid gain of 2.32%, Tokyo, Sydney, Seoul, Singapore and Taipei, though Shanghai, Wellington, Manila and Jakarta – all advanced by a range of 0.3% to 1.2%.