Global Markets Report - 14 November
ASX set to open higher after mixed day on Wall Street.
Australia
Australian shares are set to open higher, after a mixed day on Wall Street as US investors await Tuesday's inflation data.
ASX futures were up 1.0% or 68 points as of 8:30am on Tuesday, suggesting a higher open.
US stocks posted small moves with Boeing helping the Dow Industrials outperform to start the week. Boeing rose 4% after Emirates Airline said it will buy 95 aircraft from the jet maker.
DJIA gained 54 points to 34337, while the S&P 500 slipped 3 points to 4411 and the Nasdaq fell 30 points to 13767.
The dollar and Treasury yields were little changed as well, as investors await tomorrow's inflation data, with economists expecting annual core CPI to remain at 4.1%, well above the Fed's target.
In commodity markets, Brent crude oil rose 1.7% to US$82.79 a barrel while gold rose 0.3% to US$1,946.55.
In local bond markets, the yield on Australian 2 Year government bonds was up at 4.34% while the 10 Year yield was up at 4.67%. US Treasury notes were flat, with the 2 Year yield at 5.03% and the 10 Year yield at 4.63%.
The Australian dollar hit 63.77 US cents up from the previous close of 63.58. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was down at 100.14.
Asia
Chinese shares end higher, led by software and consumer services stocks. China's onshore equity market faces more opportunities than risks in 2024, CICC says in a research note. However, more policy measures are necessary to break the pessimistic expectations, restore resident confidence and boost consumption, CICC adds. Beijing Kingsoft Office Software gained 2.4% and iFlytek added 4.7%. China Tourism Group Duty Free Corp. rose 0.8% and Shanghai Jinjiang International Hotels was 0.7% higher. Consumer durables weighed on the market. Midea Group shed 3.1% and Gree Electric Appliances declined 2.7%. The benchmark Shanghai Composite Index ended 0.25% higher at 3046.53, the Shenzhen Composite Index gained 0.6% and the tech-heavy ChiNext Price Index added 0.2%.
Hong Kong stocks snapped a four-day losing streak, with a choppy morning session giving way to an afternoon rally fueled by tech buying. Investors shook off a Goldman Sachs downgrading of Chinese offshore stocks, bouyed instead by plans for a Xi-Biden meeting, signs of consumer demand during an 11/11 sales event, and with TSMC sales in Taiwan painting a picture of rising chip demand. Kuaishou, Lenovo and KE Holdings gained 4.9%, 4.6% and 4.3%, respectively. Among blue-chip decliners, Samsonite fell 5.0% and Great Wall Motor shed 2.15%. The benchmark Hang Seng Index finished 1.3% higher at 17426.21, while the local tech index added 2.3% to 3981.27.
The Nikkei Stock Average closed 0.1% higher at 32585.11 as gains in food and financial stocks helped offset losses caused by several disappointing earnings. Asahi Group Holdings rose 3.6% and Japan Post Insurance advanced 1.4%. Meanwhile, Shiseido dropped 14% after cutting its earnings guidance for 2023. The broader Topix market index ended flat at 2336.62. The 10-year Japanese government yield was up 2.5 basis points to 0.875%. Investors remain focused on earnings and the impact of the war in the Middle East.
India's Sensex fell 0.5% to close at 64933.87, led by financial and IT stocks amid a cautious mood ahead of the country's October inflation report due later in the day. Among the worst performers on the benchmark index, Bajaj Finance fell 1.3%, Infosys declined 1.0%, Tech Mahindra shed 1.0% and ICICI Bank was 0.8% lower. Tata Chemicals lost 1.8% after its 2Q net profit dropped 32% on year.
Europe
European stocks rose as investors awaited the release of the U.S. inflation report on Tuesday. The Stoxx Europe 600 and DAX, advanced 0.6% and 0.5% respectively, and the CAC 40 climbed 0.4%. Insurer Phoenix Group rose 5.9% after raising its full-year cash generation target while aerospace and defence firm Rolls Royce Holdings climbed 3.2%.
The FTSE 100 index closed Monday up 0.9% to 7245 points in line with European peers, helped by financial and oil-exposed stocks as investors wait for U.S. inflation numbers amid expectations that interest rates peaked despite Fed's Chair Jerome Powell attempt to counter this narrative, AJ Bell investment director Russ Mould says in a note. "U.S. inflation numbers out tomorrow will tell their own story and a higher-than-expected reading could well prompt renewed jitters among investors," Mould adds. Oil-and-gas majors BP and Shell closed up 1.4% and 1%, respectively, as Brent crude rose nearly 1.3% at $82.49. Shares of insurer Phoenix outperformed the blue-chip index, closing up 5.7%, after lifting its cash-generation target, followed by Rolls-Royce and Melrose Industries, up 3.5% and 3% respectively.
North America
US stocks posted small moves with Boeing helping the Dow Industrials outperform to start the week. Boeing rose 4% after Emirates Airline said it will buy 95 aircraft from the jet maker.
DJIA gained 54 points to 34337, while the S&P 500 slipped 3 points to 4411 and the Nasdaq fell 30 points to 13767.
The dollar and Treasury yields were little changed as well, as investors await tomorrow's inflation data, with economists expecting annual core CPI to remain at 4.1%, well above the Fed's target.
Tyson Foods shares fell 2.8% after the meatpacker posted a loss and forecast sales to be flat in the upcoming fiscal year.