Hong Kong stocks jump 3% as China relaxes some virus rules

The Caixin/S&P Global services Purchasing Managers’ Index for November came in at 46.7, representing the lowest reading in six months.

The print also marks the third consecutive month of contraction in output and new work, after October’s reading came in at 48.4, while September’s print was 49.3.

PMI readings are sequential and represent month-on-month changes in factory activity. The 50-point mark separates growth from contraction.

“The rate of decline was solid overall, but remained weaker than the falls seen during the previous major wave of Covid-19 cases from March to May,” Caixin said in a release.

“Efforts to curb the spread of Covid-19 amid a notable rise in case numbers in recent weeks, weighed on service sector business operations and customer demand across China during November,” it added.

China’s official non-manufacturing PMI released last week stood at 46.7, the lowest since April 2022.

— Abigail Ng

The Chinese currency strengthened to around 7 against the U.S. dollar following the latest reports that signaled further loosening of China’s Covid policies.

The offshore yuan traded at 6.9861 against the greenback, strengthening past 7-levels for the first time since mid-September.

Beijing and Shenzhen are taking steps to loosen testing requirements and quarantine rules despite the daily case count hovering near all-time highs.

The latest moves come about a week after public unrest erupted over the strict measures in various parts of the country.

— Jihye Lee

A veteran Schroders fund manager has named two global retailers that are about to ‘dominate’ their sector.

Andrew Brough, who runs the Schroder UK Mid Cap Fund, said the two conservatively run companies are taking market share ahead of a recession by silently acquiring failing competitors cheaply.

One of those stocks has already risen by 30% this year while its benchmark index has declined by 29%.

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— Ganesh Rao

Stock futures dropped while bond yields rose in response to the 8:30 a.m. jobs data that came in stronger than expected by economists.

Here’s how each major futures index and the notable bond yields moved over the course of the 30 minutes leading up to and following the release of the data:

Goldman Sachs sees one opportunity in electric vehicles that’s on an “upward trend.”

This trend will gain pace as EVs become “ever more technology driven” and simpler to build, said Goldman analysts in a Dec. 1 report.

That’s set to benefit one global stock, said Goldman, which gives the stock up to 90% upside in its bull case for the firm.

CNBC’s Pro subscribers can read more here.

— Weizhen Tan

Job growth was stronger than expected in November despite the Federal Reserve’s efforts to cool the labor market.

Nonfarm payrolls grew by 263,000 last month while the unemployment rate was unchanged at 3.7%, according to the Labor Department on Friday.

Payroll numbers were expected to jump by 200,000 more jobs, according to consensus estimates from the Dow Jones. The unemployment rate was expected to remain at 3.7%.

Stock futures dropped following the payrolls release.

— Sarah Min