To the scoreboard:
- Dow: 24,640.24 +354.29 (+1.46%)
- S&P 500: 2,673.54 +40.98 (+1.56%)
- AUD/USD: 0.7230 -0.0001 (-0.01%)
- ASX200 SPI futures (December contracts): 5,723 (+45)
1. Global stocks rose overnight as some risk-on sentiment returned to markets. A Cyber Monday boost saw Amazon lead the big US tech companies higher, while energy stocks recouped some losses as prices for brent crude oil rose back above $US60 a barrel.
2. ASX futures are pointing higher, although it follows a rough session for the big miners yesterday after further falls in iron ore prices. And those falls intensified overnight, as benchmark 62% fines tumbled by 8.4% — the biggest one-day drop since April last year. Here’s the chart:
3. Risk sentiment overnight was helped by news the Italian government may be prepared to compromise on its draft budget and reduce its 2019 borrowing requirements. Stocks in Milan rose by almost 3% while the yield on Italian 10-year bonds fell 15 basis points to 3.27%.
4. The UK pound held above the $US1.28 mark as the European Council approved Theresa May’s draft Brexit agreement. The deal now goes to a vote in UK parliament on December 6, and Goldman Sachs thinks it will ultimately achieve parliamentary approval.
5. The Australian dollar “followed the broad US dollar swings, rallying from 0.7230 yesterday to around 0.7275 in the London morning, then back to 0.7230”, said Westpac’s Sean Callow, who added the Aussie showed “no apparent correlation” to the collapse in iron ore prices.
6. And after briefly topping out with a market capitalisation above $US1 trillion, Apple has now been overtaken by Microsoft as the most valuable US company. It follows sharp declines for Apple in the recent tech-led market selloff, amid a subdued outlook for new iPhone sales.
The main events on today’s economic calendar:
- New Zealand trade data (October).
- China industrial profits (October).
- Speech from US Fed vice-chair Richard Clarida — “Data dependence and US Monetary Policy”.
- Fed committee members Bostic, Evans and George sit on a panel in New York.
Have a great day.