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Below are Views On Daily Global Market Update 12 November 2021 By Asheesh Chanda, Kristal.AI

China dominates price action

On an otherwise uneventful day, China saw a broad rally across multiple asset classes. Equities onshore beat all major global indices on a day where the SPX was flat. The biggest gainers in the US market were also the Chinese listed ADRs. The overarching event here was the Party's annual plenum, where Xi Jinping introduced a doctrine yesterday that puts him on par with the party's founding leaders and the makes him the first leader in 40 years who will likely remain in the seat for life. His themes outlined were 'common prosperity', 'self-reliance' and 'quality growth'.

Common prosperity has seen the Tech sector take a regulatory hit this year, but yesterday was Single's day where Alibaba saw a record USD 84 bn in sales. Other ecommerce names gained on the sentiment too as consumer demand stays robust. Chinese property developers have also made up some ground over the last two days as state media appears to be hinting at a way back into the domestic borrowing markets for them. Financing costs are currently around prohibitively high levels of 25% even for the better quality names. Evergrande has managed to buy itself some time until Jan 22 and any measures enacted to help the broad sector will be closely watched.

Equities elsewhere were muted but also broadly positive. Renewables and Cannabis names gained in the US on a day when fixed income markets were closed. The US dollar built on gains from the previous session with global yields mostly up. Ahead today, we have inflation data from India, where it is expected to stay well within the 2-6% band set by the RBI, likely allowing the easing stance to last longer and possibly providing further impetus to the recent equity rally.”

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