Meituan, Tencent, APEC leaders meet, Japan trade, Australia unemployment

Australia’s unemployment rate falls slightly to 3.4%

Australian unemployment came in at 3.4% in October, slightly lower than 3.5% a month ago, according to the Australian Bureau of Statistics.

The nation saw a total increase of 16,800 in its net employment numbers from the previous month, the release said.

The latest numbers follow a 1% increase in wages reported for the most recent quarter, which saw the highest growth recorded since the March 2012 quarter, according to a separate ABS release.

– Jihye Lee

Temasek writes FTX’s entire investment, says it has no direct exposure in crypto

Temasek, Singapore’s sovereign wealth fund, announced it will write off its entire investment in FTX following the firm’s failure last week.

The state investor said in a release “given the financial situation of FTX, we have decided to write off our entire investment in FTX, regardless of the outcome of FTX’s bankruptcy protection filing.”

Temasek said its cost of investments in FTX was less than 0.1% of its net portfolio value of 403 Singapore dollars ($294 billion) – less than 1% in FTX International and less than 1.5% in FTX US.

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“There have been misconceptions that our investment in FTX is an investment in cryptocurrencies. To clarify, we currently have no direct exposure in cryptocurrencies,” the company said.

– Jihye Lee

Japan reports a larger than expected trade deficit of $15 billion

Japan reported a larger-than-expected trade deficit of 2.16 trillion yen ($15.5 billion), according to the latest release from the Finance Ministry. Economists had expected a deficit of $11 billion, according to a Reuters poll.

Exports rose 25.3% to 9 trillion yen in October compared to the same period last year, while imports jumped 53.5% to 11.16 trillion yen.

– Jihy Lee

Retail stocks remain under pressure after the Target Warning, with some bright spots

Some retail stocks were down Wednesday morning after Target’s weak financial results and sales outlook.

The target itself was down 15% shortly after the opening bell. Nordstrom fell 9%, while Macy’s and Gap each fell about 7%.

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The SPDR S&P Retail ETF fell 3.9%.

Lowe’s shares were higher, however, by 3.8% after the company reported raising its full-year earnings forecast and reporting strong results. Walmart held on to a 1% gain after reporting strong results on Tuesday. Costco fought its way into positive territory.

— Tanaya Machel

Treasury yields slip, recession fears rise

The 10-year Treasury yield temporarily dipped below 3.7%, and the spread between it and the 2-year yield continued to fall deeper into negative territory.

That so-called yield inversion is a reversal warning. The 10-year traded at 3.73% in the afternoon, having fallen to 3.69%. The 2 year Treasury was at 4.35%.

“I still think there is more downside risk for rates from here. The inverted curve 2s/10s is negative 67. Could get to negative 75 in the short term,” said Ian Lyngen at BMO.

He said the next target for the 10-year yield is 3.55%. Yields move lower as bond prices rise.

“The impetus behind the rally is that the market is looking beyond the current tightening cycle and is starting to become more optimistic about the potential for a more significant fall, with the Fed continuing to reiterate that he is willing to push the economy forward in the recession,” Lyngen said.

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—Patti Domm

Tencent to report earnings, reportedly starting a new round of job cuts

Chinese tech giant Tencent it is due to report late third quarter earnings in Asia.

The company is expected to see another drop in revenue after posting its first-ever revenue decline in the previous quarter that ended in June. A median forecast from Refinitiv predicts a 0.47% drop to 141.7 billion Chinese yuan ($20 billion).

Separately, sources told Reuters that Tencent is starting a new round of job cuts. The news comes as tech firms around the world announce layoffs.

Tencent shares rose as much as 3% in early trade, and were last up 0.83%, compared with a 0.81% fall in the broader Hang Seng Index.

— Abigail Ng, Jihye Lee

Source

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