Many thanks to all the after market contributors and viewers.
Local shares are expected to open flat after Wall Street lost intraday gains that had driven the S&P 500 and the Dow to new record highs, while commodities mostly dropped.
The US dollar powered to a seven-year peak against the yen and a two-year high against the euro on Monday, extending gains after the Bank of Japan’s latest stimulus and punishing oil and gold priced in the US currency.
SPI futures are down 3 points at 5490.0, pointing to a flat to slightly lower start
The Australian dollar is buying 86.89 US cents, 98.9 yen and 69.56 euro cents
On Wall Street, the Dow is down 0.2%, S&P500 at -0.1% and the Nasdaq is flat
In Europe, the FTSE fell 0.9%, the CAC40 lost 0.9% and the DAX slid 0.8%
Spot gold fell 0.5 per cent to $US1167.61 an ounce
Brent crude oil slumped 1.9 per cent to $US84.25 a barrel
Iron ore dropped 1 per cent to $US78.63 a tonne
The BOJ’s moves to lift growth and inflation raised expectations the European Central Bank, which meets on Thursday, would eventually resort to large-scale purchases of government bond, driving benchmark euro zone yields lower.
However, data showing China’s economy losing momentum tempered investors’ mood, weighing on global stocks.
TODAY’S AGENDA
In local economic news, the Reserve Bank of Australia holds its monthly board meeting and makes its interest rate decision.
Meanwhile, the Australian Bureau of Statistics releases September’s retail trade figures and international trade in goods and services data.
The ABS is due to announce its revised methodology for working out the seasonal adjustment of the jobs figures.
Also due out are the ANZ-Roy Morgan weekly consumer confidence and the Dun and Bradstreet business expectations surveys.
David de Ferranti, market analyst at FXCM, says this week will bring a medley of top-tier local economic events including the RBA decision, jobs numbers, manufacturing survey figures, building approvals and trade data.
The abundance of domestic releases holds the potential to catalyze plenty of intraday volatility on surprise readings.
However, the scope to deliver a lasting impact on the Aussie may be limited amid steadfast RBA policy expectations, he says.
"The central bank is widely anticipated to once again leave rates on hold when it meets on Tuesday. Moreover, recent data suggests the Board will deliver another rehashed statement that notes the need for a ‘period of stability’ for rates. Until we see consistent signs of improvement in the local labour market the Reserve Bank is likely to retain its highly accommodative stance over the near-term. Yet further rate cuts remain off the cards for the time-being, given the need to manage risks posed by speculative lending in the housing market. A lack of fresh insights into policy makers’ thinking is likely to leave the AUD to take its cues from elsewhere.
"Heavy selling pressure remains evident at the 89 US cent barrier, which may limit the scope for a recovery for AUD/USD. Meanwhile, the downside risks remain centered on the pair’s 2014 lows near 0.8660."more...
The U.S. stock market inched modestly higher on Monday, with the S&P 500 hitting an intraday record after a tenuous start to the week.
Trading activity, however, has been relatively tempered.
Investors assessed a batch of mixed economic reports and earnings: the ISM manufacturing survey index rose in October, but the final PMI index and construction spending fell. Manufacturing data from Europe and China were disappointing.
Monday’s tepid trading action is in contrast with Friday’s, when the S&P 500 and Dow industrials soared into record territory, getting a fresh push after the Bank of Japan surprised markets with an unexpected stimulus plan.
Still, even at today’s pace, the S&P 500 SPX, -0.09% was slightly higher, and closing at this level would mean new record. The Nasdaq Composite COMP, +0.09% edged up.
Meanwhile, the Dow Jones Industrial Average DJIA, -0.18% drifted lower, hitting an intraday record of 17, 398.54, registered earlier today, before retreating. On Friday, the Dow established a new closing record of 17.390.52.
Kate Warne, investment strategist at Edward Jones, said that after a stronger October, it’s not surprising to see sideways trade.more...
Market wrap for our Monday
THE Australian sharemarket closed lower, after opening slightly higher, as a slew of soft economic data dampened sentiment following the Bank of Japan’s surprise stimulus announcement.
The benchmark S&P/ASX200 index finished 19.7 points, or 0.36 per cent, lower at 5506.9, while the broader All Ordinaries index was down 20 points, or 0.36 per cent, at 5485.0
The Australian Bureau of Statistics’ released data that showed building approvals tumbled 11 per cent in September, widely missing expectations.
RP Data CoreLogic Home Value Index showed a slowing growth rate for property prices, with a 1 per cent rise over October.
Division director at Macquarie Equities, Lucinda Chan, said today’s softer close was the sign of a consolidating market after two weeks of gaining ground.
"It was an offloading day," Ms Chan said. "The big four banks’ full-year earnings was good news overall but softer Woolworths’ results could give an indication of overall consumer sentiment."
She noted it was a busy week for data, both locally and in the US, and investors are waiting for trade balance, retail and industry data in the lead up to Christmas.
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Have included a selection of day trade potentials for anyone interested.
