Markets
Global Markets Report - 16 November
Australian shares are set to open higher.
Australia
Australian shares are set to open higher as US stocks made modest gains after wholesale price inflation figures came in lower than expected. Enthusiasm was later tempered by reports of Russian missiles striking Poland.
ASX futures were up 50 points or 0.70% at 7191 as of 8:00am on Wednesday, pointing to a rise at the open.
US markets started out trading Tuesday strong, but gains were cut short after a report that Russian missiles crossed into Poland and killed two people, somewhat undermining hopes that cooling inflation would lead to a pullback in rate hikes by the US Federal Reserve.
Two people were killed in an explosion in eastern Poland near the border with Ukraine, according to media reports.
"The decline was triggered by reports of a Russian missile landing in Poland," said Steve Sosnick, chief strategist at Interactive Brokers told Reuters. "This could develop into something far worse, but right now markets are nervous, not panicked."
Stocks pulled back around mid-day, after jumping higher earlier in the session after data showed US producer prices increased less than expected.
In commodity markets, Brent crude oil rose 0.45% to $US93.63 a barrel, gold was rose to US$1,778.19.
In local bond markets, the yield on Australian 2 Year government bonds rose to 3.18% while the 10 Year dropped to 3.75%. Overseas, the yield on 2 Year US Treasury notes declined to 4.37% and the yield on the 10 Year US Treasury notes was down at 3.80%.
The Australian dollar rose to 68 US cents. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies slid down to 99.05.
Asia
Shares in the Asia-Pacific were mostly higher on Tuesday following the meeting between China president Xi Jinping and U.S. President Joe Biden. Hong Kong’s Hang Seng index was 4.11% higher, closing at 18,343.12, lifted by the Hang Seng Tech index that climbed 7.3%.
In mainland China, the Shanghai Composite advanced 1.64% to 3,134.08, while the Shenzhen Component also gained 2.14% to 11,351.33 as the country’s industrial production and retail sales data fell short of expectations.
Tokyo’s Nikkei 225 climbed 0.10% to finish at 27,990.
Europe
European stocks rose in trade on Tuesday. The pan-European STOXX 600 index was up 0.37%, the French CAC 40 index was up 0.5% while the German DAX was up 0.46%.
In London, the FTSE 100 index was lower, ending the day down 0.21%. Telecommunications giant Vodafone fell 7.96% after the mobile operator lowered its full year earnings forecast and announced plans for a further €1bn of cost savings by 2026. It warned that the global macroeconomic climate has worsened in the face of rising energy costs and broader inflation. It has lowered its core earnings guidance, and its predictions for free cash flow.
North America
US markets started out trading Tuesday strong, but gains were cut short after a report that Russian missiles crossed into Poland and killed two people, somewhat undermining hopes that cooling inflation would lead to a pullback in rate hikes by the US Federal Reserve.
Two people were killed in an explosion in eastern Poland near the border with Ukraine, according to media reports.
"The decline was triggered by reports of a Russian missile landing in Poland," said Steve Sosnick, chief strategist at Interactive Brokers told Reuters. "This could develop into something far worse, but right now markets are nervous, not panicked."
Stocks pulled back around mid-day, after jumping higher earlier in the session after data showed US producer prices increased less than expected.
In the last hour of trade, the Dow Jones Industrial Average was up 0.15%, the S&P 500 was up 0.89% and the Nasdaq Composite was up 1.48%. Tuesday's inflation report showed producer prices rising 8% in the 12 months through October against an estimated 8.3% rise.
Shares of Walmart jumped 7% after the top U.S. retailer lifted its annual sales and profit forecasts, benefiting from a steady demand for groceries despite higher prices. Shares of other retailers, including Target and Costco also rose following Walmart's report.
