ASX set for bright finish to week

3. Wall Street: US markets were closed for the Thanksgiving holiday but futures indicated markets will retreat when trading resumes on Friday, in what will be a shortened day. The contracts for both the Dow Jones Industrial Average and the S&P 500 losing 0.3% and 0.2%.

4. Europe:  European stocks retreated on the US-China tensions while a survey of dozens of Europe’s top business executives shows their optimism is waning as trade tensions and other geopolitical uncertainties cloud the outlook for the global economy.

A poll of 50 CEOs and chairmen carried out by German research group ZEW on behalf of the European Round Table for Industry, a trade association, shows that while the expectations for business remain slightly positive overall, employment and investment prospects are down.

Only about 25% of executives expect to increase investment in Europe in the next six months, with less than 50% expecting to create more jobs.

5. Asia: Japanese retail figures slumped the most since 2015 as a sales tax hike dragged on the economy, exacerbating a slowdown caused by slowing exports and manufacturing.

That took Asian shares excluding Japan down 0.2% . Japan’s Nikkei, Hong Kong’s Hang Seng and Shanghai blue chips all closed weaker.

6. Oil slides: Oil prices have fallen for a second consecutive day overnight after Trump[ signed the bill. Brent crude was down 64 US cents, or 1.0 per cent, at $US63.42 a barrel. West Texas Intermediate crude fell 31 cents, or 0.5 per cent, to $US57.80, with many US traders away for the Thanksgiving holiday.

7. Copper takes a hit: Copper prices slipped on Thursday as deteriorating relations between the United States and China cast doubt over prospects for imminent resolution to the prolonged trade dispute between the world’s two largest economies.

Benchmark copper on the London Metal Exchange (LME) ended 0.9% down at $US5,892 a tonne. Hopes of agreement on a preliminary deal to end the trade impasse pushed copper to a three-week high of $US5,968 on Wednesday.

8. Market watch:

ASX futures up 26 points or 0.4% to 6898 near 7.47am AEDT

  • AUD -0.1% to 67.65 US cents
  • In Europe: Stoxx 50 -0.2% FTSE -0.2% CAC -0.2% DAX -0.3%
  • Nikkei 225 futures -0.1%
  • Spot gold +0.1% to $US1455.69 an ounce at 4.14am AEDT.
  • Brent crude -1% to $US63.42 a barrel
  • US oil -0.4% to $US57.87 a barrel
  • Iron ore +0.6% to $US88.11 a tonne
  • Dalian iron ore +0.3% to 646 yuan
  • LME aluminium -0.7% to $US1752 a tonne
  • LME copper -0.9% to $US5892 a tonne
  • 2-year yield: US 1.63% Australia 0.65%
  • 5-year yield: US 1.63% Australia 0.66%
  • 10-year yield: US 1.77% Australia 1.00% Germany -0.36%
  • 10-year US/Australia yield gap: 77 basis points

This column was produced in commercial partnership between The Sydney Morning Herald, The Age and IG

Listen to IG’s podcast Chatting Markets here

Information is of a general nature only.


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