Macro Briefing: 7 December 2023

* House votes to bar Biden emission regulations favoring electric vehicles
* US 10-year Treasury yield falls to 4.1%–lowest since early September
* Germany stock market rises to record high
* Moody’s downgrades outlook for 8 Chinese banks
* China says exports rise for first time in seven months
* US private sector jobs rose less than expected in November: ADP

US crude oil benchmark (West Texas Intermediate) falls sharply, trading under $70 a barrel for the first time since July. The key catalyst is market skepticism that production cuts announced by Opec+ last week will suffice to offset rising supply from non-Opec sources and sliding demand. “The market is starting to price in the possibility that Opec may no longer remain cohesive and does not implement these cuts,” says Martijn Rats, chief commodities strategist at Morgan Stanley.

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