Australian market expected to open higher 06/12/19

Table of Contents

OPENING CALL: The Australian share market is expected to open higher. The SPI200 futures contract expected to open up 8 points.

Saudi Aramco priced its initial public offering Thursday at the high end of the targeted range to give the oil giant a total value of $1.7 trillion in the world’s biggest-ever IPO.

Moncler’s main shareholder and chief executive Remo Ruffini threw cold water on reports that the company has held exploratory talks with French luxury-goods conglomerate Kering over a possible deal.

Overnight Summary

Market Quotes by TradingView

Each Market in Focus

Australian Market

Australian stocks recovered after two days of heavy selling, with the rebound driven in part by a relief rally among the big banks.

With most Asia-Pacific equities markets gaining on hopes of U.S.-China trade-talk progress, the S&P/ASX 200 outperformed with a rise of 1.2%, or 76.5 points, to close at 6683.0.

The heavily weighted four biggest banks collectively added more than 17 points to the index after the RBNZ’s new capital rules–slightly softened from an earlier proposal–gave them seven years to raise buffers by billions of dollars.

Resources shares rose strongly following overnight gains in commodities prices, with BHP up 1.6% and Santos 4.2% higher.Whitehaven Coal sank 10% after lowering production guidance.

US Market

U.S. stocks edged higher intraday as investors parsed the latest headlines on the trade dispute with China and looked ahead to Friday’s jobs report.

The S&P 500 rose 0.2%, while the Dow Jones Industrial Average gained 0.1%. The Nasdaq Composite inched up less than 0.1%.

Trade-related news has driven markets this week. China again offered reassurance Thursday on the state of trade talks between the world’s two largest economies, with a spokesman for China’s Commerce Ministry saying the negotiating teams have maintained close communications.

Commodities

Gold futures finished higher, recouping much of the losses suffered a day earlier, as traders awaited monthly domestic employment data due at the end of the week, which may influence haven demand for the precious metal.

Gold for February delivery on Comex added $2.90, or 0.2%, to settle at $1,483.10 an ounce, following a loss of 0.3% on Wednesday. March silver rose 14.3 cents, or 0.9%, to $17.059 an ounce, on the back of a 1.9% loss a day earlier.

Oil Futures

U.S. benchmark oil prices ended the session unchanged on the day at $58.43/bbl., snapping a three-session winning streak amid uncertainty of what OPEC and other producers including Russia will decide in terms of its output cut arrangement, and what impact deeper cuts might have.

Forex

The British pound has been on a roll of late, climbing against both the dollar and the euro on expectations the Conservative party will secure a majority in the Dec. 12 general election.

The pound reached a fresh five-month high against the U.S. dollar. With a majority in Parliament, Prime Minister Boris Johnson intends to pass a withdrawal agreement bill to exit the European Union. Johnson would then have to negotiate a trade deal with the E.U.

The U.S. dollar, as measured by the ICE U.S. Dollar Index, fell 0.2% to 97.43 against a basket of a half-dozen currency peers, extending a weeklong slide.

European Markets

European markets were mostly lower as trade jitters continue to unsettle investors on both sides of the Atlantic. The Stoxx Europe 600 was down 0.1%, the FTSE 100 was off 0.7% and the DAX fell 0.65%, though the CAC-40 edged higher.

Asian Markets

Asian stocks rose after China said talks with the U.S. remain on track, stoking optimism that an initial deal may help call an end to the monthslong trade war. The Shanghai Composite Index ended the day up 0.7%.

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