Highlights for the morning: copper outlook, Japan's central bank prepares ETF sell-off and $7 bln deal

China's retail sales growth posted its worst gain on record, barring the Covid-19 pandemic period. HBM Healthcare InvestmentsBank of Japan is preparing to start selling off JPY83 trillion worth of ETFs. AI solutions developer ServiceNow is in talks to buy cybersecurity startup Armis for $7 billion. These and other topics are covered in our review of key events for the morning of December 15.

Retail sales growth in China slowed to its slowest pace since the collapse caused by Covid-19, Bloomberg reports. In November, they added just 1.3% year-on-year, the weakest pace on record, unless you count the pandemic period. The result was worse than all estimates in the agency's survey of analysts. The median forecast suggested that the growth rate would remain at 2.9% for the second month in a row.

Fixed capital investment also disappointed the market, declining by 2.6% in the first 11 months of the year. Thus, this indicator may show a year-on-year decline for the first time since comparable statistics began in 1998.

The Bank of Japan may start gradually selling its portfolio of exchange-traded funds (ETFs) as early as next month, sources told Bloomberg. The decision was made in September: assets will be sold off very slowly so as not to destabilize the market. At the end of September, their market value was 83 trillion Japanese yen ($534 billion), book value - 37.1 trillion Japanese yen.

The regulator plans to sell ETFs at a pace of about 330 billion yen a year at book value - an approach that could stretch over 100 years. The bank is guided by the experience of the 2000s, when it managed to sell shares received from banks without shocks. The sales will proceed evenly, but may be suspended in case of a serious crisis, the agency points out. Sumitomo Mitsui Trust Bank has been chosen as the operator of the process.

Enterprise AI solutions developer ServiceNow is in advanced talks to buy cybersecurity startup Armis, previously valued at $6.1 billion, Bloomberg reports. The deal could reach $7 billion, making it the largest acquisition in ServiceNow's history, the agency points out. At the same time, according to its data, negotiations could still break down.

Armis, founded in 2016 and specializing in protecting internet-connected devices, raised $435 million just a month ago and was targeting an IPO in late 2026/early 2027.

In August, Armis said it surpassed $300 million in annual recurring revenue; its investors include Goldman Sachs Alternatives, CapitalG, Sequoia Capital and Bain Capital Ventures.

Citi analysts predict the price of copper, which has already risen 30 percent this year, will continue to rise and reach $13,000 a ton in early 2026, and possibly $15,000 in the second quarter, CNBC writes.

The metal rose 1.5 percent to $11,656 on Monday, Dec. 15, after hitting a record of $12,000 in the previous session and then collapsing 3 percent as a selloff in artificial intelligence-related stocks heightened concerns about demand for copper, which is used in electrical wiring and renewable energy equipment.

Copper has been hitting highs this year due to production disruptions and fears that the US will impose duties on its imports, the channel explains. Citi attributes expectations of further growth to needs due to energy transition, electrification and data center construction.

The price growth is intensifying due to the fact that traders are actively importing copper to the U.S., where it costs more, which leads to a deficit outside the country and a decline in stocks at the London Metal Exchange, the channel points out. The situation is exacerbated by problems in mining: major producers, including Glencore and Rio Tinto, have lowered production forecasts for 2026.

Asia-Pacific markets collapsed on Monday after major stock indices fell in the U.S. on Friday, Dec. 12. Investors took a pause in AI-related deals, CNBC believes. In addition, statistics from China put pressure on Asian stocks.

- Hong Kong's Hang Seng Index fell 1.2 percent, while mainland China's CSI 300 Index fell 0.5 percent.

- In South Korea, the Kospi index fell 1.3%, while the Kosdaq collapsed 1.2% at the open, but recovered all losses and entered a small plus. Shares of the index heavyweight, memory chip maker SK Hynix, fell more than 2% at the end of the session, while Samsung Electronics fell 3.5%.

- Japan's broad Topix index rose 0.3 percent, while the Nikkei 225 fell 1.2 percent.

- Australia's S&P/ASX 200 fell 0.7 percent.

- Futures on S&P 500 added 0.2%, futures on Nasdaq Composite - 0.16%. Exchange contracts on Dow Jones Industrial Average rose by 0.3%.

This article was AI-translated and verified by a human editor