Local Markets Commentary

The Australian market commences today’s trade on lacklustre equities and mixed commodities leads, as the US commences the Thanksgiving holiday period.

In overnight commodities trade, gold fell. Oil settled a little lower. Copper extended Tuesday’s gains. Iron ore continued higher.

The $A dropped below US73.90c after slipping below ~US74.25c early yesterday evening.

Locally today, the ABS releases extra details regarding the October employment figures, and also managed funds information for the September quarter.

Regionally today, an initial Nikkei November manufacturing PMI is expected for Japan 11.30am AEDST.

Overseas Market Commentary

Select data boosted US equities markets and the $US higher overnight, in reduced-volume trade, but not all indices were able to maintain gains amid some Thanksgiving season profit-taking.

Regional considerations were also at play in the UK, the FTSE and British pound reacting to the first post-Brexit vote budget update.

US October durable goods orders were reported 4.8% higher, following forecasts of a 2.7% improvement. In addition, September’s gain was revised higher, to 4.0%.

Expectations of a December rate rise were consequently boosted, and when the Federal Reserve’s November policy meeting minutes were released later in the session, they seemed to confirm an albeit split readiness to act soon.

October new home sales fell 1.9%, however, almost four times the expected decline.

In his first budget update (Autumn statement) UK chancellor Phillip Hammond told parliament the budget would be £122B in deficit in 2020, but that the economy was sufficiently resilient and a £23B productivity investment fund would support housing, science and innovation, transport and internet services.

Mr Hammond said all figures were based on the UK achieving separation from the European Union (EU) by April 2019.

In Germany, an initial November manufacturing PMI came in at 54.8, slightly lower than anticipated and against 55.0 for October. The estimated 55.0 November services sector activity index bettered forecasts by one point and last month’s reading by 0.8.

The overall euro zone manufacturing PMI rose 0.2 to 53.7 and the 54.1 services PMI was 1.1 higher than anticipated.

US markets will be closed tonight due to the Thanksgiving public holiday. Tomorrow, markets will resume for a half-session.

AirAsia, ThyssenKrupp and Remy Cointreau are among companies scheduled to report later today and tonight.

Vodafone and Johnson Matthey trade ex-dividend on the FTSE 100.

Overnight, Eli Lilly dropped ~10% on disappointing results from an Alzheimer’s drug clinical trial.

Deere & Co benefited ~10% from a better-than-anticipated quarterly report and expectations that falling sales would begin to steady during 2017.