Markets
Global Markets Report - 21 November
ASX set to open higher, after a strong session on Wall St led by tech stocks.
Australia
Australian shares are set to open higher, after Wall St rose on news of ex-OpenAI chief joining Microsoft.
ASX futures were up 0.3% or 19 point as of 8:00am on Tuesday, suggesting a higher open.
US stocks rose led by strength in information technology and communication services sectors as investors digest the fallout of OpenAI firing it chief executive.
DJIA rose 203 points to 35151, the S&P 500 gained 0.7% to 4547 and the Nasdaq climbed 1.1% to 14284.
In commodity markets, Brent crude oil rose 1.8% to US$82.08 a barrel while gold was down 0.2% to US$1,977.75.
In local bond markets, the yield on Australian 2 Year government bonds was higher at 4.18% while the 10 Year yield was up at 4.50%. US Treasury notes mostly flat, with the 2 Year yield at 4.92% and the 10 Year yield at 4.42%.
The Australian dollar hit 65.59 US cents up from the previous close of 65.13. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was down at 98.15.
Asia
China shares closed higher. Investor sentiment was boosted by the government's call to speed up infrastructure projects and support property developers, said Gary Ng, a senior economist at Natixis. The Xi-Biden summit and prospects of the Fed ending interest rate hikes were also lending support, he said. Consumer services and pharmacy stocks led the session's gains. Shanghai Jinjiang International Hotels rose 4.8% and China Tourism Group Duty Free gained 0.9%. Jiangsu Hengrui Medicine advanced 0.7% and WuXi AppTec added 1.8%. Finance stocks were lower with Guosen Securities down 1.8% and Shenwan Hongyuan Group slipping 0.85%. The benchmark Shanghai Composite Index advanced 0.5% at 3068.32, the Shenzhen Composite Index rose 0.65% while the ChiNext Price Index gained 0.3%.
Hong Kong shares closed higher, led by tech and consumer stocks amid overall positive sentiment. China kept its benchmark lending rates steady as expected, which may stabilize the mainland and Hong Kong stock markets. Almost all sectors gained, with the technology and consumer sectors leading gains. JD Health International rose 5.4% and Tencent Holdings gained 3.6%. Haidilao International was up 5.3% and China Mengniu Dairy advanced 4.3%. China Hongqiao Group led losses, dropping 0.3%, and Sino Biopharmaceutical was down0.3%. The benchmark Hang Seng Index closed 1.9% higher at 17778.07 and the Hang Seng Tech Index was up 2.45%.
Japan's Nikkei Stock Average fell 0.6% to close at 33388.03 on likely profit-taking after earlier hitting a 33-year high. JPY strength, which hurts overseas earnings of Japanese exporters when repatriated to Japan, also probably weighed on local equity markets. The worst performers on the benchmark index included automakers. Mazda Motor dropped 6.1%, Toyota Motor shed 3.9% and Honda Motor lost 3.8%. USD/JPY was at 149.07, down from 150.63 as of Friday's Tokyo stock-market close. The 10-year JGB yield was down 1 bp at 0.740%.
India shares fell, dragged by finance and consumer stocks, amid mixed trading in the region. Remarks from Federal Reserve officials clouded the outlook for when the U.S. central bank might start cutting interest rates, ICICI analysts write in an email. The finance sector led declines, as Bajaj Finance and Bajaj Finserv fell 2.1% and 1.05%, respectively. Mahindra & Mahindra lost 1.9% and Tata Motors was down 1.0%. The telecom and tech sectors gained, with Bharti Airtel rising 1.5% and HCL Technologies adding 1.2%. Wipro climbed 1.2%. The benchmark Sensex closed 0.2% lower at 65655.15.
Europe
European stocks traded mixed, though oil shares gained as crude-oil prices rose amid speculation about production cuts. The Stoxx Europe 600 advanced 0.1% and the CAC 40 climbed 0.2%, while the FTSE 100 and DAX retreated 0.1% apiece. Brent crude rallied 2.6% to $82.71 a barrel, boosting the likes of BP, TotalEnergies, Eni, Repsol, Shell and Equinor. Crude prices continue to rise ahead of a meeting of oil cartel OPEC and its allies later this month, as traders anticipate further quota cuts to counteract a sharp drop in crude prices in the last few weeks, Panmure Gordon analyst Ashley Kelty says.
London's blue-chip index closed 0.11% lower at 7,496.36 points ahead of the U.K. Chancellor's Autumn Statement later in the week in which the government will lay out its fiscal measures for the next year. On Monday, a sharp 10% drop in shares of equipment-rental company Ashtead Group weighed on the FTSE 100 after it cut its fiscal 2024 guidance. This was partly offset by strength elsewhere, with supplier of specialised technical products, Diploma, closing 11% higher and online grocer and retail-technology specialist Ocado finished up 6.3%.
North America
US stocks rose led by strength in information technology and communication services sectors as investors digest the fallout of OpenAI firing it chief executive.
DJIA rose 203 points to 35151, the S&P 500 gained 0.7% to 4547 and the Nasdaq climbed 1.1% to 14284.
Microsoft gained 2.1%, ending at a fresh all-time high after saying Sam Altman would lead its new advanced AI research team.
Chip maker Nvidia gained 2.3% ahead of its earnings report on Tuesday.
Bayer shares drop 17% after halting a trial for an experimental cardiovascular drug.
Bristol Myers Squibb, which is developing a similar drug, drops 3.8%.
