Local Markets Commentary
The Australian market opens today’s trade again with little to inspire from overnight international equities and commodities trade, but ahead of influential domestic reports.
Australia’s October trade balance figures and a quarterly bulletin from the Reserve Bank of Australia (RBA) are due 11.30am AEDST
Pre-trade, the AiG and HIA release their November construction sector activity index.
Post-trade, RBA reserve assets are scheduled for release.
In overnight commodities trade, oil and iron ore (China port, 62% Fe) swung lower again, iron ore below $US69.5/t. US
gold futures settled a little higher. LME copper turned to also end the session slightly higher. Nickel and aluminium extended Tuesday’s
The $A continued lower, to ~US75.65c
, after falling to US75.80c
early yesterday evening
Regionally today, China’s November foreign reserves are expected post-ASX trade.
Tankan and leading index reports are due out of Japan this morning.
Overseas Market Commentary
Choppy trade again featured across most major European and US equities markets overnight.
Reports abounded that a UK coalition government impasse could prevent any further progress with European Union – UK separation negotiations this year.
This favoured some equities trade, however, a depreciating British pound supporting select exporters.
Later, in a major shift in US policy, and what other international leaders viewed as a further risk to regional security, the US president formally recognised Jerusalem as Israel’s capital.
Meanwhile, negotiations continued on a short-term US government operations funding bill.
US economic indicators favoured a continuing stronger $US.
Two days out from monthly national employment figures, a private sector payroll processor estimated 190,000 jobs were created during November.
September quarter labour costs surprised, falling 0.2% year-on-year, while productivity rose 3% on an annual basis.
In Germany, October industrial orders were reported 0.5% higher for the month following a 1% increase in September and forecasts of a 0.3% pullback.
The euro zone’s November retail PMI in the meantime rose 1.3 to a 52.4 five-month peak, supported by a 54.6 six-month high for Germany.
Tonight in the US, a jobs layoff report, weekly new unemployment claims and October consumer credit figures are due.
In overnight corporate news, banking sector debate was seen as threatening plans for regulated Bitcoin futures trade out of Chicago, Bitcoin itself continuing with volatility and gaining $US1000 within 24 hours
to trade beyond $US13,000.
US specialist retailer Home Depot announced a $US15B share buy-back.
United Health in the meantime revealed a $US4.9B
agreement to merge its Optum division with the medical business of DaVita.