China October industrial profits sagged -4.6% y/y, and the 5th consecutive month of declines. A crackdown on brokerage trading rules spooked markets in China, with the Shanghai Composite down -5.48%. The rest of Asia was lower, too, with the Nikkei 225 down -0.30%.
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Eurozone November economic confidence was unchanged, holding at the highest level in 4-1/2 years. Optimism is swelling that the ECB will take further stimulus action at next Thursday’s meeting. 10-yr. Bund yields dipped to 0.455% and the DAX fell -0.24%.
On the ground reports for retail activity on “Black Friday” began the day with a cautiously optimistic tone. Fears that shoppers this year would fail to show up appeared to be unfounded. Details on how and how much they spend will have to wait until next week.
The sell-off in China prompted some safe-haven buying with the yield on 10-Year Notes at 2.23% and the US$ still moving higher. Gold did not catch a bid and fell to $1,056.20. Concerns over China growth weighed on oil as well, which finished below $42.00.
It was a quiet low-volume session. Equities began the day firmer, slipped into the positive territory, then fell, but closed narrowly mixed.