To The Moon

Risk aversion dominates the market ahead of the Federal Reserve decision, global stock markets decline

🇺🇸 S&P 500 Index: -0.39% 📉

🇺🇸 Nasdaq Index: -0.32% 📉

🇪🇺 Stoxx 600 Index: -0.42% 📉

🇯🇵 Nikkei 225 Index: -0.24% 📉

🇭🇰 Hang Seng Index: -0.48% 📉

🇨🇳 CSI 300 Index: +0.26% 📈

🇸🇬 Straits Times Index: -0.55% 📉

U.S. stock markets decline in unison, with the S&P 500 and Nasdaq Composite Index falling -0.4% and -0.3%, respectively, as investors await the last Federal Reserve policy meeting of the year, with a 25 basis point rate cut widely expected.

U.S. November retail sales growth exceeded expectations, rising from 2.9% to 3.8% year-on-year, as households increased spending on automobiles and online goods, aligning with strong underlying economic momentum.

U.S. November industrial production unexpectedly contracted -0.9% year-on-year, compared to a previous decline of -0.5%, primarily due to weakness in utilities production and mining.

Asia-Pacific markets closed mixed, with the Hang Seng Index falling -0.5%, while the CSI 300 Index rose +0.3%, as investors were disappointed by Beijing's signals of economic support measures.

💡 Upcoming Events: 💡

On Wednesday, investors will focus on EU inflation year-on-year final values, Japan's export year-on-year.

On Thursday, the U.S. Federal Reserve's rate decision, final GDP quarterly growth rate, and unemployment claims will be released, while the Bank of Japan will announce its rate decision.

By the end of the week on Friday, we will see the release of U.S. core PCE price index year-on-year, Japan's core inflation year-on-year, China's 1-year and 5-year loan prime rates.

💡 Things to Know Today: 💡

1. Meta Platforms $Meta Platforms, Inc.(META)$  announced a major update to its Ray-Ban Meta smart glasses, introducing AI video features and real-time language translation through its v11 software update.

Ray-Ban Meta smart glasses

2. Nissan Motor Co. $Nissan Motor Co., Ltd.(NSANY)$  and Honda Motor $Honda(HMC)$  are discussing plans to merge via a new holding company, potentially including Mitsubishi Motors, to create the world's third-largest automotive group (by revenue), behind Volkswagen and Toyota.

Nissan x Honda

3. Beijing plans a record budget deficit of 4% of GDP in 2025, up from 3% in 2024, in preparation for possible U.S. tariffs, in line with the Politburo and Central Economic Work Conference's proposed "proactive" fiscal policy.

Politburo

4. Walmart $Wal-Mart(WMT)$  is partnering with delivery giant Meituan $MEITUAN-W(03690)$  to offer 30-minute grocery delivery services nationwide, integrating all Walmart stores into Meituan's "flash purchase" platform, expanding China's retail market.

Walmart x Meituan

5. The Hong Kong Exchanges and Clearing announced plans to reduce the minimum price fluctuation of certain securities by up to 60% to enhance market liquidity and trading efficiency, with the goal of narrowing bid-ask spreads.

HKEX

✅ Key Takeaways

Investor sentiment remains low due to the Central Economic Work Conference's failure to announce new measures, alongside weaker-than-expected consumption data. Despite a series of support measures, there has been no visible improvement.

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