To the scoreboard:
- Dow: 24,464.69 -0.95 (0.00%)
- S&P 500: 2,650.55 +8.66 (+0.33%)
- AUD/USD: 0.7262 +0.0049 (+0.68%)
- ASX200 SPI futures (December contracts): 5,658 (+16)
1. US stocks opened strongly overnight but lost momentum into the close, following two days of heavy falls. Energy and tech sectors were the best performers as the NASDAQ rose by 0.9%, and ASX futures traders are betting the local market will open higher this morning.
2. Brent crude oil prices posted a gain of 1.2%, partially offsetting the previous day’s collapse. But concerns about the global supply glut still remain, as weekly US inventory data showed crude stockpiles rose for the ninth straight week.
3. The European Council rejected Italy’s draft budget, paving the way for potential sanctions. However, Italy’s economics minister said the government still wants to engage in further talks, and stocks in Milan closed 1.4% higher while the yield on Italian 10-year bonds fell sharply.
4. The Aussie dollar and the Kiwi dollar were the best performers among major currencies overnight, as risk appetite returned to markets. The US dollar drifted lower against most of the major pairs, while the yield on US 10-year bonds edged higher to around 3.06%.
5. There was a glimmer of hope on US-China trade, following reports President Trump’s chief trade adviser Peter Navaro — a strong advocate of the trade war — won’t be attending the scheduled meeting between Trump and Chinese leader Xi Jinping at this month’s G20 summit.
6. And Goldman Sachs remains embroiled in the corruption scandal involving the Malaysian soverign wealth fund 1MDB. The WSJ reports that an Abu Dhabi sovereign fund which invested in 1MDB is now suing Goldman in New York, claiming staff from the bank conspired to bribe its officials.
It’s a quiet day on the economic calendar:
- Australian population projections from the ABS
- Japan inflation data for October.
- US markets closed for the Thanksgiving holiday.
Have a great day.