Local Markets Commentary
The Australian market opens today’s trade on largely unconvincing overnight international trade leads.
In overnight commodities trade, oil turned higher again. US gold futures settled slightly lower.
Iron ore (China port, 62% Fe) picked up the pace of Friday’s
gains, trading above $US77.5/t. LME copper and nickel settled barely higher.
The $A rose to ~US78.40c
, after dropping towards ~US78.30c
early yesterday evening.
Locally today, December job advertisements and November building approvals reports are due.
Pre-trade, a weekly consumer sentiment reading will be published.
Overseas Market Commentary
The majority of major European and US equities markets dipped in early trade, mixed data and caution appearing to cause most indices to chop or lose traction at some stage overnight.
Trading volumes reportedly remained weather and holiday-related comparatively low.
In the US, November consumer credit came in 8.8% (~$US28B) higher for the month, at $US2.38
trillion, representing the steepest monthly increase in ~two years.
A euro zone December economic confidence index, as calculated by the European Commission, rose 1.4 to 116, an ~17-year peak.
November euro zone retail sales were reported 1.5% higher for the month, following a 1.1% fall in October.
Germany’s November factory orders pulled back 0.4% following a 0.7% rise for October.
Tonight in the US, November job openings and December business optimism reports are due.
Companies scheduled to provide trading updates include UK supermarket chain Morrisons.
In overnight corporate news, US retailer Kohl’s raised its full-year earnings forecast on better-than-anticipated holiday season sales, and was pushed 5% higher.
In the UK, specialist retailer Mothercare slid 27.5% following a reduced profit warning.
Chip manufacturer Nvidia appreciated ~4% intra-session on new AI partnerships with Volkswagen and Uber Technologies.
GoPro was pushed lower, announcing the company needed to reduce employee numbers by 20% and that it planned a retreat from the drone market.
Caterpillar continued to gain on US tax benefits optimism, boosted by a positive JPMorgan Chase research assessment.
Deutsche Bank suffered a downgrade from HSBC researchers after warning late Friday
of a third consecutive annual loss.
Pfizer also suffered after revealing it would no longer pursue Alzheimer’s and Parkinson’s research.