Friday! Your morning market update is brought to you by the RBA governor.
– The major topic in dealing rooms all around the country today won’t be equity weakness or next week’s potential taper in the US. No, it will be the super aggressive and interventionist approach being taken by RBA governor Glenn Stevens at the moment toward not only the Aussie, which he managed to crush last night, but also property prices and even the Holden saga. Stevens is being uncommonly interventionist for an RBA Governor – he is clearly worried.
– The big impact of his jawboning was that the Aussie dollar is back below 90 cents at 0.8936 this morning, down 1.24% on the day and more than 200 points from the high of the week. You can read more on his comments here. Some are saying the Aussie fall was about retail sales in the US, but given the Aussie move is so much bigger than the euro (1.3742, -0.32%), GBP (1.6343, 0.19%) and even the Yen (USDJPY 103.23, +0.80%), suggests it’s not just about the US dollar.
– Turning to stocks at the close the Dow is off the lows but still down 104 points or 0.65% at 15,745. The Nasdaq is down 0.15%, while the S&P is down just 6 points to 1,776. Initial jobless claims jumped sharply in the US, up 68,000 on the previous week, but the number was confused by Thanksgiving, apparently. Retail sales were also out and rose 0.4%, ex-autos eclipsing the 0.2% expected.
– In Europe, stocks were lower with falls of more than 0.9% in London, Madrid and Milan. The CAC fell 0.44% and the Dax dropped 0.66%.
– Locally, the ASX fell another 13 points in overnight trade on the Dec SPI 200 contract to 5044 bid. The March contract was down 12 points to 5010.
– On commodity markets, Nymex crude is roughly unchanged at $97.42, Gold fell $31 to $1227.50 while Copper was unchanged at $3.33 lb. Ags were all lower with Corn off 0.7%, Wheat off 1.23% and Soybeans fell 1.51%. Bitcoin sits at $898 this morning.
On the data front, in New Zealand today we see Business PMI, while in Japan we see industrial production and capacity utilization. Tonight in Europe, we see EU employment and in the US, PPI.