Good morning and happy Friday.
To the scoreboard:
- Dow: 24,464.69 -0.95 (unchanged)
- S&P 500: 2,649.93 +8.04 (unchanged)
- AUD/USD: 0.7256 -0.0007 (-0.10%)
- ASX200 SPI futures (December contracts): 5,671 (-25)
1. With US markets closed for Thanksgiving, there was a mild risk-off tone in the UK and Europe. Stocks drifted lower amid lingering fears about trade and the global growth outlook, while S&P500 futures fell by 0.6%.
2. London’s export-heavy stock index was hit harder, as the UK pound strengthened following reports EU leaders are expected to approve a draft Brexit deal at a summit this Sunday. The pound briefly rose back above $US1.29 but was unable to hold its gains.
3. The Aussie dollar edged lower, while the euro gained some ground following the release of minutes from the European Central Bank’s latest meeting, which confirmed the ECB remains committed to ending its bond-purchasing program at the end of this year.
4. And South Africa’s rand gained more than 1% against the US dollar after the South African central bank unexpectedly raised interest rates for the first time in almost three years. The bank raised rates by 25 basis points to 6.75%, citing inflationary risks.
5. In commodities, oil gave back the previous day’s gain as brent crude fell back to nine-month lows at around $US62.50 a barrel. Gold was steady, while iron ore got smoked as prices for benchmark 62% fines fell for the third straight session.
6. And as Trump’s trade war takes effect, evidence has emerged that US companies are beginning to game the system by funneling Chinese imports through foreign subsidiaries.
Today’s economic calendar:
- A wave of global manufacturing/services PMIs in Australia, Japan, US and Europe.
- Canada inflation data (October) and retail sales (September).
Have a great weekend.