Morning All
The ASX looks to open flat with the Dec. SPI 2 points firmer at 5188
However a 3.4% selloff in iron ore points to overhead pressure on the large miners. Iron ore is $43 per tonne, but in Singapore traded below $40 tonne for the first time. BHP ADR was 1.15% lower.
Expectations of further central bank help pushed European stocks higher as a falling Euro helped carmakers. The DAX was .8% higher, Euro STOXX .5% firmer. "It's all about assessing your positions ahead of the ECB this week," said Allan von Mehren, chief analyst at Danske Bank A/S in Copenhagen. "That will give investors some direction going into the new year. While I think Draghi will deliver, the market has already been priced quite aggressively for a deposit- rate cut. We might get a case of people buying the rumour and selling the fact."
The week is expected to highlight the divergent economic policies in the United States and the euro zone, which may set the tone for markets early next year.
US stocks closed Monday with declines in health and consumer discretionary shares, though energy shares rose. Still, the three major equity indexes were poised to end higher for a second straight month.
The DOW down 79 points at 17719, S&P 500 off 10 points at 2080
There were no major, fresh, markets-moving geopolitical developments for the marketplace to focus upon Monday.
The jobs report is arguably the most important U.S. economic indicator due out before the Federal Reserve decides on Dec. 16 whether or not to raise interest rates for the first time in nearly a decade.
"The market has largely priced in a December hike and it would have to take a pretty significant miss with the jobs report to give the Fed some pause before its next meeting," said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin.
Base metals were modestly higher, Copper rising .7%, Nickel 1.5%, zinc .8%, aluminium flat
Gold .94% firmer $1066
HUI +1.8%
Oil 9c weaker $41.62
$Aus .723
What's on today
Australia Reserve Bank rates decision, home prices, balance of payments, building approvals, BHP Billiton hosts a
three-day analyst tour of its Chile copper assets. A presentation by Daniel Malchuk, the company's copper president, will be released to the London and Australian exchanges at about 11:00 in London; Japan capital spending data (Q3); China purchasing indexes; UK Bank of England publishes stress tests of UK lenders, Financial Stability Report, Governor Mark Carney press conference; Germany unemployment data; US Markit manufacturing PMI, construction spending
Have a good day all
Sources SMH, *****, Daily Reckoning, Reuters, Market Watch
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