* US stock markets rose again overnight, as an unexpected surge in consumer confidence boosted investor sentiment, but gains were kept in check due to concerns in Europe.
* European stock markets rose again in a volatile session, after a successful Italian bond auction and continuing hopes that eurozone leaders will make progress in addressing the eurozone debt crisis.
* Asian stock markets ended mostly higher yesterday, after news that the US “Black Friday” which is the start of the Christmas shopping season produced figures that were better than expected and there was also optimism that European leaders are inching closer towards addressing the eurozone crisis.
* Commodities prices traded higher, as Gold prices higher to $US1,710 and while crude-oil closed around $US99.
The SPI Futures is trading around the key pivot level of 4250, ending up 0.6% (or 26 points) at 4,104. The key levels for our index today are 4050 to 4180.
Yesterday Aussie shares started the week on positive note, on the back of hopes of an Italian bailout by the IMF. The International Monetary Fund is reported to be setting up a EUR 600 billion ($A820 billion) rescue fund for Italy, to be used to refinance EUR 300 billion in debt due for repayment in 2012. Such a bailout would give the ECB some breathing space to resolve the debt issues of the other PIIGS economies.
Shares in the All Ordinaries (XAO) generally eased again, closing up 1.7% at 4126, as the S&P/ASX 200 (XJO) closed up 1.9% at 4058.
Aussie traders are expected to show caution today, after the modestly higher leads from the US and European markets. Traders’ fears over the eurozone debt crisis have eased after encouraging comments from Germany and France over the need for an action plan, and in the US the “Black Friday” figures outperformed those of last year. We continue to have a busy week for AGMs and production reports, see below for details.
Economics News Today
* Q3 Private New Capital Expenditure & Expected Expenditure
* Oct Financial Aggregates, incl Private Sector Credit
All the ten company groups that make up the S&P index traded mixed with the Materials were up 0.2%, Energy sector were up 1.4%, Financials sector was down -0.5%, Industrials sector was up 0.1% , Technology were down -0.5%, while Consumer Staples were up 0.4%.
In London the FTSE 100 index closed up 0.5% (or 24 points) at 5,337, the German DAX was up 1.0% (or 55 points) at 5,799 while in France the CAC was up 0.5% (or 14 points) at 3,026, Spain up 0.1% and Italy ended up 0.3%.
Asian stock markets ended mostly higher yesterday, after news that the US “Black Friday” which is the start of the Christmas shopping season produced figures that were better than expected and there was also optimism that European leaders are inching closer towards addressing the eurozone crisis.
Around the region, major exporters which rely heavily on end-of-year sales, rose after the solid start to the US shopping season, resource stocks rose on higher commodity prices and the banks continued to bounce.
In China the SSE Composite was closed up 1.2% (or 29 points) at 2,412, while in Hong Kong the Hang Seng Index was up 1.2% (or 218 points) at 18,256 and in Japan the Nikkei 225 Index was closed up 2.3% (or 255 points) at 8,477, South Korean KOSPI was up 2.0% for the session, while the Indian market was down -1.0%.
For the session the Benchmark crude NYMEX for December delivery was up 2.0% (or $US1.97) settle at $US99.75. Copper prices are seeking a support level as Copper for December delivery was up 1.2% (or 3 cents) at $US3.3580. December gold was up 1.5% (or $US25.30) at $US1,710.
AGG – AngloGold Ashanti has reported a substantial increase in the gold resource estimate for its Tropicana project in Western Australia.
BHP – Investment in the mining industry rose by 34 percent to a new record of to $231.8 billion in the six months to October, new data shows. As well, capital spending in the sector has risen 74 percent in the year since October 2010.
CPB – Campbell Brothers the laboratory group has delivered a record interim profit and flagged a surge in its full year result.
IAG – IAG has warned of an increased frequency of major storms, with Australia’s first severe tropical storms of the summer cyclone season to hit the country in early December.
PMV – Premier Investments, the owner of retail brands such as Just Jeans and Portmans, says trade improved in October and is in line with expectations in November.
UGL – United Group the engineering firm has secured $200 million in contracts tapping into Australia’s resources boom.
VDM – The VDM Group the design and construction company has won $30.6 million worth of work with BHP Billiton.
Commodities Stock Index up 0.7%
Gold Stocks Index up 0.4%
Oil Stocks Index up 1.5%
US ADRs – Broadly Mixed!!…
By Michael Hevern
Head of Research