Daily Market Reports | 8:25 AM
This story features FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED, and other companies. For more info SHARE ANALYSIS: FPH
| World Overnight | |||
| SPI Overnight | 8459.00 | + 21.00 | 0.25% |
| S&P ASX 200 | 8406.70 | + 47.30 | 0.57% |
| S&P500 | 5998.74 | – 22.89 | – 0.38% |
| Nasdaq Comp | 19060.48 | – 115.10 | – 0.60% |
| DJIA | 44722.06 | – 138.25 | – 0.31% |
| S&P500 VIX | 14.18 | + 0.08 | 0.57% |
| US 10-year yield | 4.24 | – 0.06 | – 1.39% |
| USD Index | 106.03 | – 0.89 | – 0.83% |
| FTSE100 | 8274.75 | + 16.14 | 0.20% |
| DAX30 | 19261.75 | – 34.23 | – 0.18% |
Good morning.
It is the Thanksgiving public holiday in the US with the bond market and equity markets closed.
Both markets will also close early on Friday (circa 1pm). It is also the Black Friday shopping period.
Inflation is back on financial markets’ radar and overnight the latest moves originated from Europe where ECB Board member Isabel Schnabel stated in a Bloomberg interview there’s only room left for limited rates cuts.
“Given the inflation outlook”.
The European deposit rate currently stands at 3.25%. Schnabel estimates the neutral rate is somewhere between 2-3%.
Traders in government bonds started paring back the outlook for further ECB rate cuts, which pushed the euro higher against the USD.
US Treasury yields are lower across the curve, also taking into account a slew of economic data, with market pricing implying the odds for a Fed rate cut next month have improved to 70% from 63%.
Bond market moves had a negative impact on equities, with technology retreating most in the US.
The Dow (-0.3%) and S&P500 (-0.38%) outperformed the Nasdaq (-0.6%).
Probably the most influential data release overnight was the US headline PCE deflator which rose 0.2% m/m while the core PCE deflator was up 0.3% m/m, both in line with expectations.
The supercore PCE deflator was up 0.36% m/m, the highest since March. On an annual basis, supercore firmed up to 3.5% y/y (vs 3.2% before). Importantly, the 3mth annualised rose to 3.5%.
The slow progress on disinflation in addition to the policy uncertainty surrounding the incoming administration have opened up a debate on Wall Street whether the Fed will turn more cautious in its easing cycle.
Australia had its own inflation update yesterday and economists believe without the electricity rebate local price inflation is going nowhere for the time being, seemingly staying glued to 3.5%, which is higher than the RBA likes it to be.
The softening USD had a positive impact on base metals and iron ore, while oil prices merely stabilised and gold managed a small gain.
SPI futures on Thursday morning are suggesting a moderately positive opening.
On the calendar today:
-New Zealand ANZ business confidence Nov
-Australia 3Q PCE
-US Nov jobless claims
-US Public Holiday
-Fisher & Paykel ((FPH)) earnings report
-Hub24 ((HUB)) Strategy Day
-Red Hill Minerals ((RHI)) ex-div 30c (100%)
-Star Entertainment ((SGR)) AGM
-Strike Energy ((STX)) AGM
-TechnologyOne ((TNE)) ex-div 17.37c (65%)
-Tower ((TWR)) FY24 earnings report
-Westgold Resources ((WGX)) AGM
FNArena’s four-weekly calendar: https://fnarena.com/index.php/financial-news/calendar/
Corporate news in Australia:
-Fonterra ((FSF)) seeks court clarification on its licensing agreement with Bega Cheese ((BGA)) to facilitate the sale of its assets
-Seven ((SWM)), ABC, SBS and ACM join forces to demand AI firms like OpenAI and Google pay for using their content to train large language models, filing with the ACCC for collective bargaining approval.
-Macquarie Bank’s ((MQG)) London branch (MBL) was fined GBP13m for trader’s fraudulent activity
| Spot Metals,Minerals & Energy Futures | |||
| Gold (oz) | 2662.22 | + 4.56 | 0.17% |
| Silver (oz) | 30.58 | – 0.40 | – 1.29% |
| Copper (lb) | 4.14 | + 0.01 | 0.35% |
| Aluminium (lb) | 1.17 | – 0.00 | – 0.27% |
| Nickel (lb) | 7.17 | – 0.04 | – 0.50% |
| Zinc (lb) | 1.41 | + 0.03 | 2.21% |
| West Texas Crude | 68.77 | + 0.11 | 0.16% |
| Brent Crude | 72.38 | + 0.21 | 0.29% |
| Iron Ore (t) | 102.06 | 0.00 | 0.00% |
The Australian share market over the past thirty days
| Index | 27 Nov 2024 | Week To Date | Month To Date (Nov) | Quarter To Date (Oct-Dec) | Year To Date (2024) |
|---|---|---|---|---|---|
| S&P ASX 200 (ex-div) | 8406.70 | 0.15% | 3.02% | 1.66% | 10.75% |
| BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS | |||
| GQG | GQG Partners | Downgrade to Hold from Add | Morgans |
| IAG | Insurance Australia Group | Downgrade to Accumulate from Buy | Ord Minnett |
| LOV | Lovisa Holdings | Upgrade to Hold from Lighten | Ord Minnett |
| MP1 | Megaport | Downgrade to Hold from Accumulate | Ord Minnett |
| QAN | Qantas Airways | Downgrade to Neutral from Buy | UBS |
| RSG | Resolute Mining | Downgrade to Hold from Accumulate | Ord Minnett |
| WTC | WiseTech Global | Upgrade to Outperform from Neutral | Macquarie |
| Upgrade to Add from Hold | Morgans | ||
| Upgrade to Accumulate from Hold | Ord Minnett | ||
For more detail go to FNArena’s Australian Broker Call Report, which is updated each morning, Mon-Fri.
All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available on the FNArena website. Click here. (Subscribers can access prices on the website.)
(Readers should note that all commentary, observations, names and calculations are provided for informative and educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions. All views expressed are the author’s and not by association FNArena’s – see disclaimer on the website)
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CHARTS
For more info SHARE ANALYSIS: BGA - BEGA CHEESE LIMITED
For more info SHARE ANALYSIS: FPH - FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED
For more info SHARE ANALYSIS: FSF - FONTERRA SHAREHOLDERS FUND
For more info SHARE ANALYSIS: HUB - HUB24 LIMITED
For more info SHARE ANALYSIS: MQG - MACQUARIE GROUP LIMITED
For more info SHARE ANALYSIS: RHI - RED HILL MINERALS LIMITED
For more info SHARE ANALYSIS: SGR - STAR ENTERTAINMENT GROUP LIMITED
For more info SHARE ANALYSIS: STX - STRIKE ENERGY LIMITED
For more info SHARE ANALYSIS: SWM - SEVEN WEST MEDIA LIMITED
For more info SHARE ANALYSIS: TNE - TECHNOLOGY ONE LIMITED
For more info SHARE ANALYSIS: TWR - TOWER LIMITED
For more info SHARE ANALYSIS: WGX - WESTGOLD RESOURCES LIMITED