Block Inc. to Become First Crypto-Related Listing on Australia’s ASX

The news hit the wires late last year of Australia’s Afterpay (APT) getting shareholder approval for Block Inc.’s planned $29bn buyout. Block Inc., previously known as Square Inc., is a mobile payment and merchant services platform.

Afterpay, Block, and the Acquisition

Afterpay is a buy no pay later firm, allowing customers to pay for both goods and services in installments. The company was founded in 2014 and has more than 16 million users.

Afterpay operates in Australia and New Zealand, North America, and the UK. The company floated on the Australian Securities Exchange (ASX) on 4th May 2016, with an offer price of $1.00. As of Friday, 14th January, Afterpay closed at A$69.03.

Twitter Inc. co-founder Jack Dorsey co-founded Block Inc. The former Twitter CEO had stepped down to focus on Block that was re-branded shortly after his stepping down as Twitter CEO.

Earlier this week, Reuters reported that the Bank of Spain had approved the $29bn buyout of Afterpay Ltd.

According to Reuters, this would be Block’s biggest deal to date and the largest sum paid for an Australian firm. Other ASX deals are still pending that will be larger, however, including a BHP-Woodside $31bn megadeal.

The merged company will list on the ASX on 20th January. The merger is expected to support Afterpay’s growth in the U.S market, where it competes with platforms such as PayPal and Apple.

According to news that hit the wires this morning, the ASX was putting a framework together for other blockchain-backed companies to float this year.

The exchange is also moving to blockchain, with the ASX CHESS (Clearing House Electronic Subregister System) replacement project implementing a blockchain-based clearing and settlement system. The estimated transition date from CHESS to blockchain is early 2023.

Other listed crypto-related firms include:

  • Coinbase Global Inc. (COIN), traded on the NASDAQ.
  • Bit Mining Ltd (BTCM), traded on the New York Stock Exchange.
  • HIVE Blockchain Technologies Ltd (HIVE), traded on the NASDAQ.
  • Bitfarms Ltd (BITF), traded on the NASDAQ.

Crypto-Linked Companies Go Mainstream

It’s been a busy start to the year for the crypto markets. While regulatory chatter has seen a marked increase, there’s also been plenty of activity within the crypto corporate space.

It’s not just crypto-related firms that are listing on exchanges that are getting air time. Just this morning, news hit the wires of crypto exchanges planning to offer stocks to compete with mainstream platforms such as Robinhood. U.S crypto trading platforms FTX and Bitstamp are reportedly planning to offer stock trading.

ASX200 – U.S Inflation and Weekend Omicron News to Set the Tone

Economic Calendar 

Tuesday, 14th December

NAB Business Confidence (Nov)

Wednesday, 15th December

Westpac Consumer Sentiment (Dec)

Thursday, 16th December

Employment Change (Nov)

Full Employment Change (Nov)

Unemployment Rate (Nov)

The ASX200

It was a bearish end to the week, with the ASX200 falling for a 2nd consecutive day on Friday. Following a 0.28% decline on Thursday, the ASX200 fell by 0.43% to end the day at 7,354.

There were no major stats from the Australian session to provide direction through the day. The lack of stats left the markets to look ahead to U.S inflation figures due out late in the day.

With the U.S inflation figures considered key to next week’s FOMC projections, the Big-4 and commodity stocks had a mixed session.

The Stats

There were no major stats from Australia to provide direction.

The Market Movers

It was a mixed day for the banks. Westpac fell by 0.81%, with ANZ down by 0.51%. CBA (-0.27%) and NAB (-0.21%) also saw red. Macquarie Group bucked the trend, however, rising by 0.02%.

Commodity stocks also had a mixed session. Newcrest Mining slid by 1.74%, with Fortescue Metals Group Ltd and BHP Group seeing losses of 0.82% and 0.60% respectively. Rio Tinto avoided the red, however, rising by 0.03%

Other Asian Markets

Elsewhere, it was also a bearish session. The Nikkei225 and the Hang Seng Index fell by 1.07% and by 1.00% respectively, with the CSI300 ending the day down by 0.46%.

The Day Ahead

It’s another particularly quiet day ahead on the Aussie economic calendar. There are no material stats from Australia to provide direction through the session.

The lack of stats will leave the markets to respond to the U.S inflation figures from Friday and Omicron news updates.

Friday’s gains across the U.S markets should deliver early support, with the rate of acceleration of U.S core inflation having eased in November.

The Futures

In the futures markets, at the time of writing, the ASX200 was up by 13 points.

For a look at all of today’s economic events, check out our economic calendar.

ASX200: Weekly Wrap – 10/12/2021

Economic Calendar

Tuesday, 14th December

NAB Business Confidence (Nov)

Wednesday, 15th December

Westpac Consumer Sentiment (Dec)

Thursday, 16th December

Employment Change (Nov)

Full Employment Change (Nov)

Unemployment Rate (Nov)

The ASX200

It was a bullish week for the ASX200, which rose by 1.55% in the week ending 10th December to end the week at 7,354. In the previous week, the ASX200 had fallen by 0.52%.

With economic data from Australia limited to house price figures, the RBA and market sentiment towards the Omicron strain were key in the week.

While news updates suggested that vaccine efficacies may be materially lower, there was also early evidence that the new strain was a milder one. Also delivering support were early suggestions that a 3rd vaccine would be sufficient to increase protection against any severe illness.

The news in the week coincided with the RBA’s view that the new strain would not derail the economic recovery. On Tuesday, the RBA left policy unchanged, which was in line with expectations.

Throughout the week, however, market sentiment towards U.S inflation and FED monetary policy pegged the ASX200 back.

The Stats

Economic data was limited to house price figures. In the 3rd quarter, the House Price Index rose by 5.0% quarter-on-quarter. The index had risen by 6.7% in the previous quarter.

From Elsewhere

Trade and inflation figures for China were in focus.

China’s USD trade surplus narrowed from $84.54bn to $71.72bn in November. Exports rose by 22%, year-on-year, while imports were up 31.7%. Imports had been up by 20.6% in October, while exports had been up by 27.1%.

While exports were down, strong demand driving imports was a positive for the markets.

In November, China’s annual rate of inflation accelerated from 1.5% to 2.3%. Economists had forecast an annual rate of inflation of 2.5%. Month-on-month, consumer prices increased by 0.4% versus a forecasted 0.3% rise. In October, consumer prices had risen by 0.7%.

Significantly, however, was softer wholesale inflation. In November, the annual wholesale rate of inflation eased from 13.5% to 12.9. Economists had forecast an annual wholesale rate of inflation of 12.4%.

The Market Movers

It was a bullish week for the banks. NAB led the way, rallying by 2.40%, with ANZ and Commonwealth Bank of Australia rising 1.63% and 1.34% respectively. Macquarie Group (+1.13%) and Westpac (+0.72%) ended the week with relatively modest gains, however.

Commodity stocks had a mixed session. Fortescue Metals Group Ltd rallied by 5.85% to lead the way, with Newcrest Mining (+1.76%) and Rio Tinto (+0.32%) also finding support. BHP Group ended the week down by 0.67%, however.

Other Asian Markets

Elsewhere, it was also a bullish week. The Hang Seng Index and the Nikkei225 rose by 0.96% and by 1.46% respectively, with the CSI300 rallying by 3.14%.

The Week Ahead

It’s a busier week ahead on the Asian economic calendar. From Australia, stats include business and consumer confidence figures in the 1st half of the week. On Thursday, employment figures will be key, however.

From China, industrial production and retail sales figures will also draw interest mid-week.

The FED’s monetary policy decision overnight on Wednesday, along with the economic projections will be the main event of the week, however. Following FED Chair Powell’s shift in stance on inflation, will there be a shift in outlook on interest rates?

Away from the economic calendar, expect Omicron news updates to continue to influence.

For now, the key downside risk remains news of Omicron resilience to existing vaccines…

ASX200 – A Quiet Economic Calendar Leaves COVID-19 in Focus as the Markets Look ahead to the FED

The ASX200

It was back into the red, with the ASX200 seeing a 4-day winning streak come to an end on Thursday. Partially reversing a 1.25% rally from Wednesday, the ASX200 fell by 0.28% to end the day at 7,385.

Uncertainty over the new Omicron strain and mixed reports, which had weighed on the European majors on Wednesday, pegged back the ASX200.

Optimism that the strain was less virulent had fueled Wednesday’s breakout. Reports from South Africa of the Pfizer vaccine being as much as 40 times less effective weighed, however. With more time needed to ascertain exactly how effective the existing vaccines are and whether a booster or 3rd dose would be sufficient, uncertainty will likely continue to hang over the global financial markets.

The Stats

There were no major stats from Australia to provide direction.

From China, inflation accelerated further in November. There was some comfort, with wholesale pressures easing, albeit modestly.

In November, China’s annual rate of inflation accelerated from 1.5% to 2.3%. Economists had forecast an annual rate of inflation of 2.5%. Month-on-month, consumer prices increased by 0.4% versus a forecasted 0.3% rise. In October, consumer prices had risen by 0.7%.

Significantly, however, was softer wholesale inflation. In November, the annual wholesale rate of inflation eased from 13.5% to 12.9. Economists had forecast an annual wholesale rate of inflation of 12.4%.

The Market Movers

It was a mixed day for the banks. CBA and NAB both ended the day up by 0.21% respectively. Macquarie Group fell by 0.53%, however, with ANZ (-0.18%) and Westpac (-0.24%) also seeing red.

Commodity stocks also had a mixed session. Fortescue Metals Group Ltd rallied by 1.50% to lead the way, with Newcrest Mining ending the day up by 0.26%. Rio Tinto and BHP Group saw red, however, falling by 0.94% and by 1.20% respectively.

Other Asian Markets

Elsewhere, it was a mixed session. The CSI300 and the Hang Seng Index rallied by 1.66% and by 1.08% respectively, while the Nikkei 225 joined the ASX200 in the red, with a 0.47% loss.

The Day Ahead

It’s another particularly quiet day ahead on the Aussie economic calendar. There are no material stats from Australia to provide direction through the session.

The lack of stats will leave the majors in the hands of the U.S markets and COVID-19 news updates. With the FOMC meeting just days away and U.S inflation figures due out in today’s U.S session, it could prove to be a testy day…

The Futures

In the futures markets, at the time of writing, the ASX200 was down by 10 points.

For a look at all of today’s economic events, check out our economic calendar.

ASX200 – Central Bank Chatter and China Inflation in Focus

The ASX200

It was a 4th consecutive day in the green for the ASX200 on Wednesday. Following a 0.95% gain on Tuesday, the ASX200 rose by 1.25% to end the day at 7,406.

Mining stocks, the big-4 banks, and tech stocks were on the move as the Asia markets responded to solid overnight gains on Wall Street.

Crude oil and commodity prices bounced back on news that there was evidence of vaccine resilience against the Omicron strain.

The Stats

There were no major stats from Australia to provide direction.

The Market Movers

It was a relatively bullish day for the banks. Macquarie Group led the way, rallying by 1.30%, with NAB ending the day up by 1.02%. ANZ (+0.73%), CBA (+0.33%), and Westpac (+0.57%) saw relatively modest gains, however.

Commodity stocks also had a bullish session. Fortescue Metals Group Ltd rallied by 3.27% to lead the way, with Rio Tinto and BHP Group rising by 2.18% and by 1.85% respectively. Newcrest Mining ended the day up by 0.94%.

Other Asian Markets

Elsewhere, it was a bullish session. The CSI300 and the Nikkei 225 rallied by 1.50 and by 1.42% respectively, with the Hang Seng Index gaining 0.06%.

The Day Ahead

It’s a particularly quiet day ahead on the Aussie economic calendar. There are no material stats from Australia to provide direction through the session.

On the monetary policy front, RBA Governor Lowe is scheduled to speak, however, and could move the dial.

From China, inflation figures for November will influence. Another spike in inflation could test support for riskier assets and the general consensus that inflation remains transitory.

Away from the economic calendar, while the markets move forward on Omicron optimism, next week’s FOMC meeting is nearing.

The Futures

In the futures markets, at the time of writing, the ASX200 was down by 27 points.

For a look at all of today’s economic events, check out our economic calendar.

ASX200 – A Quiet Economic Calendar Leaves the U.S Markets and Commodities to Give Direction

The ASX200

It was a bullish day for the ASX200 on Tuesday. Following a modest 0.05% gain on Monday, the ASX200 rose by 0.95% to end the day at 7,314.

Optimism from the RBA that the omicron strain would unlikely derail the economic recovery was key to the upside on the day. News of the PBoC easing property curbs cutting the reserve ratio requirement by 50 bps was also market positive.

Key going into the session, however, was a bullish overnight session on Wall Street. The U.S futures added further support, pointing northwards in the session.

The Stats

It was a quiet day on the economic data front, with stats limited to housing sector data.

In the 3rd quarter, house prices increased by 5.0% versus a forecasted 5.0% increase for the quarter. The House Price Index had risen by 6.7% in the previous quarter.

The numbers had a muted impact on the Aussie Dollar, however, with the markets looking ahead to the RBA monetary policy decision and rate statement.

From China

Trade data was also market positive.

In November, China’s US Dollar trade surplus narrowed from $84.54bn to $71.72bn. While the trade surplus narrowed, both imports and exports were better than expected.

  • In November, exports increased by 22% year-on-year versus a forecasted 19%. Exports had risen by 27.1% in the month prior.
  • Imports were up 31.7% versus a forecasted 19.8%. In October, imports had been up by 20.6%.

While the stats drew interest, the RBA monetary policy decision and rate statement were key.

In line with market expectations, the RBA left the cash rate unchanged at 0.1%. Additionally, the RBA decided to continue purchasing government securities at the rate of A$4bn a week until at least mid-Feb 2022.

Vis-à-vis the Omicron strain, the RBA viewed the strain as a new source of uncertainty, but did not expect it to derail the economic recovery. The statement revealed that the RBA expects the economy to return to its pre-Delta path in the first half of 2022.

The Market Movers

It was a relatively bullish day for the banks. ANZ led the way, rising by 1.55%, with NAB and Westpac seeing gains of 1.07% and 1.11% respectively. CBA and Macquarie Group ended the day up by 0.40% and by 0.17% respectively.

Commodity stocks also had a bullish session. Fortescue Metals Group Ltd rallied by 1.52% to lead the way, with Rio Tinto and BHP Group rising by 0.89% and by 0.91% respectively. Newcrest Mining ended the day up by 0.78%.

Other Asian Markets

Elsewhere, it was a bullish session. The CSI300 and the Nikkei 225 rose by 0.60 and by 1.89% respectively, with the Hang Seng Index rallying by 2.72%.

The Day Ahead

It’s a particularly quiet day ahead on the Aussie economic calendar. There are no material stats from Australia to provide direction through the session.

The lack of stats will leave commodity prices, COVID-19 news and the U.S futures to provide direction.  Overnight, it was a particularly bullish session on Wall Street, which should deliver early support.

The Futures

In the futures markets, at the time of writing, the ASX200 was up by 22 points.

For a look at all of today’s economic events, check out our economic calendar.

ASX200: RBA in Focus after a Bullish Session on Wall Street

Economic Calendar

Tuesday, 7th December

House Price Index (QoQ) (Q3)

RBA Interest Rate Decision & Rate Statement

The ASX200

It was a mixed day for the ASX200 on Monday. Following a 0.22% gain on Friday, the ASX200 rose by 0.05% to end the day at 7,245.

Market concerns over the Omicron strain continued to weigh following Friday’s pullback on Wall Street. Supported by a surge in the U.S futures markets, however, the ASX200 reversed losses from the day to end the day in the green.

It was a mixed day for mining stocks, while the Big-4 delivered much-needed support. Tech stocks continued to struggle, however, with Afterpay Ltd down 4.32% on the day and Xero Ltd down 1.79%.

The Stats

It was a particularly quiet day on the economic data front, with no major stats through the Asian session to provide direction.

The Market Movers

It was a relatively bullish day for the banks. CBA led the way, rising by 0.65%, with NAB ending the day up by 0.29%. Macquarie Group (+0.17%), Westpac (+0.10%), and ANZ (+0.04%) all saw modest gains, however.

The commodity stocks had a mixed session. Newcrest Mining rallied by 1.54%, with Fortescue Metals Group Ltd rising by 0.29%. Rio Tinto and BHP Group fell by 1.78% and 1.59% respectively, however.

Other Asian Markets

Elsewhere, it was a bearish session. The CSI300 and the Nikkei 225 fell by 0.17% and by 0.36% respectively, with the Hang Seng Index ending the day down by 1.76%.

The Day Ahead

It’s a relatively quiet day ahead on the Aussie economic calendar. House price figures for the 3rd quarter are due out in the early part of the session. The numbers are unlikely to have an impact on the ASX200, however.

The RBA monetary policy decision and, more importantly, the rate statement will be key. Following a shift in policy guidance by the FED, the markets will be looking for change in forward guidance stemming from persistent inflationary pressure and the new Omicron strain.

Going into the open, the overnight Wall Street bounce back should deliver support.

The Futures

In the futures markets, at the time of writing, the ASX200 was up by 29 points.

For a look at all of today’s economic events, check out our economic calendar.

ASX200: A Quiet Economic Calendar Leaves COVID-19 and U.S Futures to Influence

Economic Calendar

Tuesday, 7th December

House Price Index (QoQ) (Q3)

RBA Interest Rate Decision & Rate Statement

The ASX200

It was a relatively bullish day for the ASX200 on Friday. Reversing a 0.15% decline from Thursday, the ASX200 rose by 0.22% to end the day at 7,241.

Market concerns over the Omicron strain, it’s virulence, and existing vaccine efficacy continued to test support for riskier assets.

Support for the Big-4 banks, however, off the back of overnight gains from Wall Street delivered support at the end of the week.

The Stats

It was a particularly quiet day on the economic data front, with no major stats from Australia to provide direction.

From elsewhere, service sector PMI data from China did disappoint, however.

In November, the Caixin Services PMI fell from 53.8 to 52.1. Economists had forecast a more modest decline to 52.6.

According to the November survey,

  • Total new business rose at the slowest rate for 3-months and only marginally overall, with foreign demand rising modestly.
  • Measures to curb the spread of COVID-19 had weighed on new order inflows.
  • Strong business confidence and efforts to expand capacity led to a further increase in employment. The rate of job creation was the quickest since May.
  • Average input prices increased for a 17th consecutive month, with the rate of inflation accelerating to a 6-month high.
  • Prices charged, however, rose at a softer pace in November.
  • Firms remained strongly confident, however, that output will increase over the next year.

The Market Movers

It was a bullish day for the banks. CBA and Macquarie Group ended the day up by 0.74% and by 0.57% respectively. ANZ and NAB led the way, however, rising by 1.27% and by 1.30% respectively, with Westpac gaining 1.17%.

The commodity stocks had a mixed session. Fortescue Metals Group Ltd and Newcrest Mining fell by 0.87% and by 1.04% respectively. Rio Tinto and BHP Group made gains of 1.40% and 1.31% respectively, however.

Other Asian Markets

Elsewhere, it was a mixed session. The CSI300 and the Nikkei 225 rose by 0.92% and by 1.00% respectively, while the the Hang Seng Index ended the day down by 0.09%.

The Day Ahead

It’s a particularly quiet day ahead on the Aussie economic calendar. There are no major stats to provide direction through the session.

The lack of stats will leave COVID-19 news updates and U.S futures to provide direction. Overnight losses from the U.S on Friday will likely test support going into the open.

ASX200: Weekly Wrap – 03/12/2021

Economic Calendar

Tuesday, 7th December

House Price Index (QoQ) (Q3)

RBA Interest Rate Decision & Rate Statement

The ASX200

It was another bearish week for the ASX200, which fell by 0.52% in the week ending 3rd December. In the week prior, the ASX200 had fallen by 1.58%.

Economic data failed to have an impact in the week, as the markets responded to FED Chair chatter and COVID-19 news updates.

Early in the week, FED Chair Powell gave testimony on Capitol Hill. The FED Chair spoke of the need to discuss accelerating the tapering of bond purchases. More significantly, however, was a shift in view on inflation. Powell stated that it was time to end referring to the latest spike in inflation as transitory.

The comments raised the prospects of a sooner than anticipated move on interest rates. Importantly, the comments also affirmed market fears of a more hawkish FED following Powell’s reappointment in the week prior.

The Stats

Company gross operating profits and private sector credit figures were in focus early in the week.

In the 3rd quarter, profits rose by 4.0% off the back of a 7.1% jump in the quarter prior. Private sector credit increased by just 0.5% in October, however, easing from a 0.6% rise in the month prior.

Mid-week, GDP numbers for the 3rd quarter delivered some comfort, with the economy contracting less than expected.

Quarter-on-quarter, the economy contracted by 1.9% versus a 2.7% contraction. The economy had expanded by 0.7% in the previous quarter.

Late in the week, trade data drew little interest in spite of a narrowing of the trade surplus from A$12.243bn to A$11.220bn.

From Elsewhere

Economic data from China failed to impress.

In November, the Caixin Manufacturing PMI fell from 50.6 to 49.9 versus a forecasted decline to 50.5.

According to the November survey,

  • Three of the 5 PMI components weighed in November, these being
    • New orders fell marginally after 2-months of expansion. High output prices and the pandemic were cited as reasons for the decline.
    • Employment levels fell for a 4th consecutive month, though the rate of job shedding remained marginal.
    • Suppliers’ delivery times also weighed.
  • By contrast, output and stocks of purchases had positive influences.
  • After rising rapidly in October, input costs rose only modestly in November, with the rate of inflation the slowest since Oct-2020.
  • As a result, the rate of output charge inflation also slowed considerably in the month.

At the end of the week, the Caixin Services PMI fell from 53.8 to 52.1, rounding off a poor week on the economic data front.

The Market Movers

It was a mixed week for the banks. Macquarie Group rose by 2.26% to lead the way, with Commonwealth Bank of Australia (+1.90%) and NAB (+1.12%) also finding support. Westpac (-1.80%) and ANZ (-0.15%) ended the week in the red, however.

Commodity stocks also had a mixed session. Fortescue Metals Group Ltd and Newcrest Mining fell by 0.52% and by 6.18% respectively. Rio Tinto and BHP Group ended the week up by 1.12 and by 5.78% respectively.

Other Asian Markets

Elsewhere, it was a mixed week. The Hang Seng Index and the Nikkei225 fell by 1.30% and by 2.51% respectively, while the CSI300 ended the week up by a modest 0.84%.

The Week Ahead

It’s a quiet week ahead on the Asian economic calendar. From Australia, stats are limited to house price figures that should have a muted impact on the markets. While stats are on the lighter side, the RBA monetary policy decision and rate statement on Tuesday will be key.

From China, inflation and trade data will draw plenty of attention, however.

Away from the economic calendar, expect COVID-19 news updates and any further government measures to contain the spread of the Omicron strain to test support for riskier assets.

For now, the key downside risk remains news of Omicron resilience to extisting vaccines…

ASX200: A Quiet Economic Calendar Leaves U.S Moves and China PMI Numbers in Focus

The ASX200

It was another bearish day for the ASX200 on Thursday. Following a 0.28% decline from Wednesday, the ASX200 slipped by 0.15% to end the day at 7,225.

While it was a mixed day for the Big-4 banks, commodity and, ultimately, tech stocks left the ASX200 in the red, reversing a late move into positive territory.

Economic data from Australia failed to impress, with concerns over COVID-19 and a shift in the FED’s policy outlook weighing once more.

The Stats

It was a relatively busy morning, with finalized retail sales and trade data in focus.

In October, retail sales rose by 4.9%, which was in line with prelim figures. Retail sales had risen by 1.3% in September.

Of greater significance were trade figures for October.

Australia’s trade surplus, narrowed from A$11.82bn to A$11.22bn in October.

According to the ABS,

  • Goods and services exports fell 3% to A$1,491m, with the decline stemming from falling iron ore prices.
  • Goods and services imports fell by 3% to A$887m, the decline attributed to a fall in the imports of capital goods.

The Market Movers

It was a mixed day for the banks. CBA rallied by 2.15%, with Macquarie Group ending the day up by 1.47%. ANZ and NAB also found support, rising by 0.19% and by 0.80% respectively. Westpac bucked the trend, however, falling by 0.78%.

The commodity stocks had a bearish day. Newcrest Mining led the way down, sliding by 2.42%, with Rio Tinto falling by 1.63%. Fortescue Metals Group Ltd and BHP Group saw relatively modest losses of 0.12% and 0.48% respectively.

Amongst the tech stocks, Xero Ltd (-5.11%) and Afterpay Ltd (-6.09%) saw particularly heavy losses.

Other Asian Markets

Elsewhere, it was a mixed session. The CSI300 and the Hang Seng Index rose by 0.25% and by 0.55% respectively, while the Nikkei ended the day down by 0.65%.

The Day Ahead

It’s a quieter day ahead on the Aussie economic calendar. From Australia, there are no material stats to provide direction through the early part of the day. The lack of stats will leave the ASX200 in the hands of the U.S markets from overnight and the U.S futures early on.

Later in the morning, China service sector PMI numbers from China will influence.

Away from the economic calendar, the markets will also need to continue monitoring COVID-19 news updates from across the globe.

The Futures

In the futures markets, at the time of writing, the ASX200 was up by 52 points.

For a look at all of today’s economic events, check out our economic calendar.

ASX200: Australian Trade in Focus as the Markets Look to Shake Off COVID-19 Woes

Economic Calendar

Thursday, 2nd December

Trade Balance (Oct)

The ASX200

It was a choppy day for the ASX200 on Wednesday. Reversing a 0.22% gain from Tuesday, the ASX200 fell by 0.28% to end the day at 7,236.

While better than expected, 3rd quarter GDP numbers from Australia highlighted the economic woes that could result from another COVID-19 breakout.

Disappointing economic data from China and hawkish chatter from FED Chair Powell overnight added downward pressure on the day.

The Stats

Manufacturing sector and 3rd quarter GDP numbers were in focus this morning.

In November, the AIG Manufacturing Index increased from 50.4 to 54.8.

According to the November Survey,

  • This was the first month of improvement following 3 months of flat results.
  • All sectors expanded except for chemicals, which was stable.
  • Food & beverages bounced back into growth, with the PMI up 19.9 points to 57.3.
  • All 7 activity indices expanded or were stable in November. Deliveries rose by 12.2 points to 53.4, with stocks up 7.0 points to 58.6. Strong demand supported an 8.5 point rise to 54.6 for exports.
  • The input price index slipped by 3.5 points to 78.3, while the selling index hit a series high 68.1, up by 4.2 points in the month to 68.1.

The Aussie Dollar moved from $0.71242 to $0.71299 upon release of the figures that preceded 3rd quarter GDP numbers.

In the 3rd quarter, the economy contracted by 1.9% quarter-on-quarter versus a forecasted 2.7% contraction. Year-on-year, the economy grew by 3.9% versus a forecasted 3.0%. The economy had expanded by 9.6% in the 2nd quarter year-on-year, and by 0.7% quarter-on-quarter.

According to the ABS,

  • Domestic demand drove the demand with prolonged lockdowns leading to a marked decline in household spending.
    • Private demand detracted 2.4 percentage points from GDP, with a 4.8% fall in household final consumption expenditure.
    • Spending on services slid by 5.8%, with falls in hotels, cafes, and restaurants, recreation and culture and transport services.
  • The decline was partly offset, however, by growth in net trade and public sector expenditure.
    • Public demand contributed 0.7 percentage points to GDP growth.
  • Household savings to income rose from 11.8% to 19.8%, the rise driven by increased household income coupled with reduced spending.

From China

In November, the Caixin Manufacturing PMI fell from 50.6 to 49.9 versus a forecasted decline to 50.5.

According to the November survey,

  • Three of the 5 PMI components weighed in November, these being
    • New orders fell marginally after 2-months of expansion. High output prices and the pandemic were cited as reasons for the decline.
    • Employment levels fell for a 4th consecutive month, though the rate of job shedding remained marginal.
    • Suppliers’ delivery times also weighed.
  • By contrast, output and stocks of purchases had positive influences.
  • After rising rapidly in October, input costs rose only modestly in November, with the rate of inflation the slowest since Oct-2020.
  • As a result, the rate of output charge inflation also slowed considerably in the month.

The Market Movers

It was a mixed day for the banks. Macquarie Group fell by 0.59%, with ANZ ending the day with a 0.15% loss. It was a relatively bullish day fo the rest, however. CBA rose by 0.68%, with, Westpac and NAB seeing gains of 0.34% and 0.33% respectively.

Commodity stocks were on the move, however. Rio Tinto led the way, rallying by 2.49%, with Fortescue Metals Group Ltd and BHP Group seeing gains of 1.29% and 1.45% respectively. Newcrest Mining bucked the trend however, falling by 0.34%.

Other Asian Markets

Elsewhere, it was a bullish session. The Nikkei and the CSI300 Seng Index rose by 0.41% and by 0.24% respectively, with the Hang Seng gaining by 0.78%.

The Day Ahead

It’s a quieter day ahead on the Aussie economic calendar. From Australia, key stats include trade data for October. With little else for the markets to consider, commodities and U.S futures will also provide direction.

Ahead of the open reaction to FED Chair Powell’s 2nd day of testimony would also need to be required.

Away from the economic calendar, the markets will need to continue monitoring COVID-19 news updates from across the globe.

For a look at all of today’s economic events, check out our economic calendar.

ASX200: Australian GDP and China Manufacturing Data in Focus

Economic Calendar

Tuesday, 30th November

Building Approvals (MoM) (Oct)

Current Account (Q3)

Private Sector Credit (MoM) (Oct)

Wednesday, 1st December

AIG Manufacturing Index (Nov)

GDP (YoY) (Q3)

GDP (QoQ) (Q3)

Thursday, 2nd December

Trade Balance (Oct)

The ASX200

It was a bullish day for the ASX200 on Tuesday. Partially reversing a 0.54% decline from Monday, the ASX200 rose by 0.22% to end the day at 7,256.

Better than expected economic data from China provided support, with support also coming from U.S equity market gains from overnight on Monday.

Market concerns over the new COVID-19 strain and government efforts globally to contain the spread remained a negative, however.

The upside on the day was not enough to prevent a 3rd consecutive month in the red. For the month of November, the ASX200 ended the month down by 0.93%, with last Friday’s 1.73% tumble in response to news of the new COVID-19 strain doing the damage.

The Stats

Building approvals and private sector credit were in focus this morning.

Building approvals tumbled by 12.9% in October after having fallen by 4.3% in September. Economists had forecast a 2% decline.

Private sector credit rose by a further 0.5% month-on-month in October, following a 0.6% increase in September.

According to the RBA,

  • Business credit rose by 0.5%, with housing credit up by 0.6%.
  • While housing credit had risen by 0.6% in the month prior, business credit had seen a larger 0.7% increase.
  • Personal credit was flat after a 0.7% decline in September.

From China

In November, the NBS Manufacturing PMI rose from 49.2 to 50.1, while the Non-Manufacturing PMI slipped from 52.4 to 52.3.

The Market Movers

It was a mixed day for the banks. Westpac slid by 1.91%, with CBA falling by 0.64%. Macquarie Group led the way, however, rising by 1.41%, with ANZ and NAB seeing gains of 0.30% and 0.37% respectively.

Commodity stocks also had a mixed session Fortescue Metals Group Ltd slid by 3.35% to lead the way down, with Rio Tinto and Newcrest Mining falling by 1.98% and by 2.32% respectively. BHP Group bucked the trend, however, rising by 2.07%.

Other Asian Markets

Elsewhere, it was a bearish session. The Nikkei and the Hang Seng Index slid by 1.63% and by 1.58% respectively, with the CSI300 ending the day down by 0.40%.

The Day Ahead

It’s another busy day ahead on the Aussie economic calendar. From Australia, key stats include manufacturing sector data and, more importantly, 3rd quarter GDP numbers. Expect the GDP numbers to be key.

From elsewhere, manufacturing sector data from China will also influence, with the all-important Caixin Manufacturing PMI for November in focus.

Away from the economic calendar, expect market reaction to FED Chair Powell testimony from overnight and COVID-19 news to influence.

Comments from Moderna CEO Bancel and hawkish chatter from the FED Chair will be negatives going into the session. Overnight FED Chair Powell talked of the need to discuss speeding up the reduction in bond purchases. Powell also suggested that it would be appropriate to stop describing inflation as transitory…

The Futures

In the futures markets, at the time of writing, the ASX200 was down by 51 points.

For a look at all of today’s economic events, check out our economic calendar.

ASX200: Private Sector Credit and China Private Sector PMIs in Focus

Economic Calendar

Tuesday, 30th November

Building Approvals (MoM) (Oct)

Current Account (Q3)

Private Sector Credit (MoM) (Oct)

Wednesday, 1st December

AIG Manufacturing Index (Nov)

GDP (YoY) (Q3)

GDP (QoQ) (Q3)

Thursday, 2nd December

Trade Balance (Oct)

The ASX200

It was another bearish day for the ASX200 on Monday.

Following last Friday’s 1.73% tumble, the ASX200 fell by 0.54% to end the day at 7,239.8.

Positive economic data from Australia failed to provide support as COVID-19 uncertainty continued to weigh on the Asian markets.

While mining found support following the flight to safety on Friday, the big-4 banks continued to struggle, along with oil stocks. Travel stocks also saw deep red as governments globally looked to curb the spread of the Omicron strain.

The Stats

In the 3rd quarter, company gross operating profits increased by 4.0% quarter-on-quarter versus a forecasted 3.0% increase. Profits had risen by 7.1% in the previous quarter.

According to the ABS,

  • Government subsidies supported company gross operating profits.
  • Wages and salaries fell by 0.8%, however.

The Market Movers

It was a bearish day for the banks. ANZ and NAB slid by 1.66% and by 1.63% respectively, with CBA falling by 1.09%. Macquarie Group and Westpac saw relatively modest losses of 0.65% and 0.76% respectively.

Commodity stocks had a mixed session, however Fortescue Metals Group Ltd rallied by 2.39% to lead the way, with Rio Tinto and BHP Group ending the day up by 0.99% and by 1.42% respectively. Newcrest Mining bucked the trend, however, falling by 0.37%.

Other Asian Markets

Elsewhere, it was also a bearish session. The Nikkei and the Hang Seng Index fell by 1.63% and by 0.95% respectively, with the CSI300 ending the day down by 0.18%.

The Day Ahead

It’s a busier day ahead on the Aussie economic calendar. From Australia, stats include building approvals, current account, and private sector credit figures. Expect the RBA’s private sector credit figures to draw the greatest interest.

From China, however, NBS private sector PMI figures for November will be the key stats of the day.

Away from the economic calendar, expect market reaction to FED Chair Powell overnight and COVID-19 news to influence.

The Futures

In the futures markets, at the time of writing, the ASX200 was up by 41 points.

For a look at all of today’s economic events, check out our economic calendar.

ASX200: Weekly Wrap – 26/11/2021

Economic Calendar

Monday, 29th November

Company Gross Operating Profits (QoQ) (Q3)

Tuesday, 30th November

Building Approvals (MoM) (Oct)

Current Account (Q3)

Private Sector Credit (MoM) (Oct)

Wednesday, 1st December

AIG Manufacturing Index (Nov)

GDP (YoY) (Q3)

GDP (QoQ) (Q3)

Thursday, 2nd December

Trade Balance (Oct)

The ASX200

It was yet another bearish week for the ASX200, which fell by 1.58% in the week ending 26th November. In the week prior, the ASX200 had fallen by 0.62%.

While it was a mixed week on the economic data front, a Friday flight to safety across the global financial markets left the index in the red for the week.

Rising new COVID-19 cases across Europe and a new strain spreading from South Africa weighed heavily on riskier assets on Friday.

The ASX200 had been in positive territory for the week before the Friday sell-off. Adding to the market angst in the week was the reappointment of FED Chair Powell, which led to a more hawkish outlook on FED monetary policy.

The Stats

It was a relatively busy week on the economic data front. Key stats included private sector PMI and new CAPEX data ahead of retail sales figures at the end of the week.

Private Sector PMIs

Australia’s prelim private sector PMIs were in focus early in the Asian session.

In November, the manufacturing PMI rose from 58.2 to 58.5, with the services PMI jumping from 51.8 to 55.0. Both sectors hit 5-month highs in the month. As a result, Australia’s composite PMI increased from 52.1 to a 5-month high 55.0.

According to the November survey,

  • Easing of COVID-19 restrictions supported a pickup in private sector activity mid-way through the 4th
  • Output and demand both picked up from the previous month, with business confidence improving.
  • While employment conditions also improved, while price pressures persisted.
  • Input price inflation soared to a survey record high in November.

The Construction Sector

In the 3rd quarter, construction work down slipped by 0.3% quarter-on-quarter, following a 0.8% increase in the quarter prior. Economists had forecast a 3.1% slide.

Private New CAPEX

In the 3rd quarter, private new CAPEX fell by 2.2% versus a forecasted 2.0% decline. Private new CAPEX had increased by 4.4% in the previous quarter.

According to the ABS.

  • Buildings and structures slipped by 0.2%, while expenditures on equipment, plant, & machinery slid by 4.1%.
  • While negative, the estimate for 2021-22 was raised by 8.7% to A$138.6bn.

Prelim Retail Sales

In October, retail sales jumped by 4.9% versus a forecasted 2.5% rise, according to prelim figures. Retail sales had risen by 1.3% in September.

According to the ABS,

  • Food retailing fell by 0.5%, while household goods retailing increased by 4.5% in the month.
  • There were also increases in retailing for:
    • Clothing, footwear, & personal accessories (+27.7%).
    • Department stores (+22.4%).
    • Other retailing (+2.2%).
    • Cafes, restaurants, & takeaway food services (+12.3%).

From Elsewhere

Economic data from the U.S raised the prospects of a more hawkish FED stance on monetary policy.

Key stats included jobless claims, inflation, personal spending, core durable goods, and 3rd quarter GDP numbers.

In the week ending 19th November, initial jobless claims fell from 270k to 199k. Personal spending was also positive, with spending up 1.3% in October.

Core durable goods orders were market friendly, rising by 0.5% in October. In September, core durable goods orders had risen by 0.7%.

An upward revision to 3rd quarter GDP numbers failed to impress, however. The U.S economy expanded by 2.1% in the quarter, revised up from a previous estimate of 2.0%. Economists had forecast 2.2% growth, however.

Negative for riskier assets, however, was a pickup in inflation. In October, the Core PCE Price Index was up 4.1%, year-on-year. The index had been up by 3.6% in September.

The Market Movers

It was a bearish week for the banks. Macquarie Group slid by 6.12% to lead the way down, with Westpac (-4.79%) also deep in the red. While Commonwealth Bank of Australia (-3.07%) and NAB (-3.22%) also struggled, ANZ fell by a more modest 0.84% in the week.

Commodity stocks had a mixed session. Fortescue Metals Group Ltd jumped by 11.12% to lead the way, with Rio Tinto and BHP Group ending the week up by 4.66% and by 4.33% respectively. Newcrest Mining bucked the trend, however, falling by 2.29%.

Other Asian Markets

Elsewhere, it was a bearish week. The Hang Seng Index and the Nikkei 225 slid by 3.87% and by 3.34% respectively, while the CSI300 ended the week down by a modest 0.61%.

The Week Ahead

It’s a relatively busy week ahead on the Asian economic calendar. From Australia, company gross operating profits and private sector credit figures will be in focus early in the week.

In the second half of the week, however, 3rd quarter GDP and trade data for October will likely have greater influence.

From China, private sector PMIs for November will also provide direction, with Caixin Manufacturing PMI numbers on Wednesday likely to have the greatest impact.

While the stats will draw interest, central bank chatter and COVID-19 news updates will remain key, however. Riskier assets could take another hit should more governments shut down borders and talk of the need to reimpose lockdowns. Of greater significance, however, would be any news updates on the new strain’s resistance against existing vaccines.

ASX200: Futures Point Northwards ahead of Retail Sales Numbers

Economic Calendar

Friday, 26th November

Retail Sales (MoM) (Oct)

The ASX200

It was back into the green for the ASX200 on Thursday.

Reversing a 0.15% loss from Wednesday, the ASX200 rose by 0.11% to end the day at 7,407.29.

Bank stocks weighed on Thursday, while commodity and tech stocks delivered support, with the upside coming off the back of modest gains from the U.S on Wednesday.

The Stats

Economic data was limited to private new CAPEX figures in the early part of the session.

In the 3rd quarter, private new CAPEX fell by 2.2% versus a forecasted 2.0% decline. Private new CAPEX had increased by 4.4% in the previous quarter.

According to the ABS.

  • Buildings and structures slipped by 0.2%, while expenditures on equipment, plant, & machinery slid by 4.1%.
  • While negative, the estimate for 2021-22 was raised by 8.7% to A$138.6bn.

The Market Movers

It was a bearish day for the banks. CBA led the way down, sliding by 1.45%, with ANZ and Westpac seeing losses of 0.87% and 0.78% respectively. NAB and Macquarie Group ended the day down by 0.46% and by 0.72% respectively.

Commodity stocks had a bullish session, delivering much-needed support. Fortescue Metals Group Ltd and Rio Tinto led the way, with gains of 1.76% and 1.64% respectively. Newcrest Mining and BHP Group ended the day up by 0.46% and by 0.99% respectively.

Other Asian Markets

Elsewhere, it was another mixed session. The Nikkei and the Hang Seng Index rose by 0.67% and by 0.22% respectively, while the CSI300 slipped by 0.41%.

The Day Ahead

It’s another relatively quiet day ahead on the Aussie economic calendar. Retail sales figures for October will be in focus early in the session. Expect plenty of influence, with consumption key to the economic recovery.

With the U.S markets having been closed on Thursday, expect the futures markets to also provide direction alongside commodity prices.

A continued rise in new COVID-19 cases across Europe, however, will likely test support for riskier assets, however.

The Futures

In the futures markets, at the time of writing, the ASX200 was up by 4 points.

For a look at all of today’s economic events, check out our economic calendar.

ASX200: Futures Point Northwards. Reaction to U.S Data and the FOMC Minutes to Set the Tone

Economic Calendar

Thursday, 25th November

Private New Capital Expenditure (QoQ) (Q3)

Friday, 26th November

Retail Sales (MoM) (Oct)

The ASX200

It was back into the red for the ASX200 on Wednesday.

Partially reversing a 0.78% gain from Tuesday, the ASX200 slipped by 0.15% to end the day at 7,399.44.

A mixed session for the big-4 banks and commodity stocks weighed following a pickup in 10-year U.S Treasury yields on Tuesday.

Following FED Chair Powell’s reappointment, the markets have shifted on FED monetary policy, pushing the 10-year higher.

Eurozone and U.S private sector PMIs from Tuesday also continued to point to supply chain disruption and yet higher cost pressures.

The Stats

In the 3rd quarter, construction work down slipped by 0.3% quarter-on-quarter, following a 0.8% increase in the quarter prior. Economists had forecast a 3.1% slide.

The numbers had a muted impact on the day, however.

The Market Movers

It was a mixed day for the banks. ANZ and CBA rose by 0.88% and by 0.37% respectively. Westpac and NAB fell by 0.05% and by 0.07% respectively, however, with Macquarie Group sliding 1.48%.

Commodity stocks also had a mixed session. Newcrest Mining fell by 1.16%, with Rio Tinto ending the day down by 0.06%. Fortescue Metals Group Ltd and BHP Group saw gains of 1.27% and 0.50% respectively, however.

Other Asian Markets

Elsewhere, it was another mixed session. The CSI300 and the Hang Seng Index rose by 0.07% and by 0.14% respectively, while the Nikkei slid by 1.58%.

The Day Ahead

It’s another relatively quiet day ahead on the Aussie economic calendar. Private new CAPEX figures for the 3rd quarter will be in focus, with economists forecasting a 2% fall.

From overnight, however, market reaction to U.S economic data and the FOMC meeting minutes will set the tone.

Gains for the NASDAQ and the S&P500, in response to the FOMC meeting minutes, should deliver some early support.

The Futures

In the futures markets, at the time of writing, the ASX200 was up by 7 points.

For a look at all of today’s economic events, check out our economic calendar.

ASX200: A Quiet Economic Calendar Leaves Commodities and COVID-19 News in Focus

Economic Calendar

Wednesday, 24th November

Construction Work Done (QoQ) (Q3)

Thursday, 25th November

Private New Capital Expenditure (QoQ) (Q3)

Friday, 26th November

Retail Sales (MoM) (Oct)

The ASX200

It was a bullish session for the ASX200 this morning, recovering from Monday’s pullback.

Reversing a 0.59% loss from Monday, the ASX200 rose by 0.78% to end the day at 7,410.57. Tuesday’s gain marked just the 5th in 12-sessions.

Upbeat prelim private sector PMI figures from Australia provided support early in the session. Rising oil and iron ore prices were key, however, supporting mining and energy stocks.

The upside came in spite of the U.S equity markets giving up gains from earlier in the U.S session overnight.

Financial stocks were also on the rise, with the big-4 finding much-needed support off the back of Powell’s 2nd term.

The Stats

Australia’s prelim private sector PMIs were in focus early in the Asian session.

In November, the manufacturing PMI rose from 58.2 to 58.5, with the services PMI jumping from 51.8 to 55.0.

Both sectors hit 5-month highs in the month.

As a result, Australia’s composite PMI increased from 52.1 to a 5-month high 55.0.

According to the November survey,

  • Easing of COVID-19 restrictions supported a pickup in private sector activity mid-way through the 4th
  • Output and demand both picked up from the previous month, with business confidence improving.
  • While employment conditions also improved, while price pressures persisted.
  • Input price inflation soared to a survey record high in November.

The Market Movers

It was a bullish day for the banks. ANZ led the way, rallying by 1.91%, with CBA ending the day up by 1.07%. Westpac and and NAB rose by 0.60% and by 0.85% respectively, with Macquarie Group gaining 0.19%.

Commodity stocks had another mixed session. Newcrest Mining fell by 0.57% to buck the trend once more. Fortescue Metals Group Ltd jumped by 9.81%, to lead the way, however, with BHP Group and Rio Tinto ending the up by 4.02% and by 3.61%.

Following Monday’s reversal, oil stocks also found support, with Santos and Woodside Petroleum gaining 2.12% and 3.46%.

Other Asian Markets

Elsewhere, it was another mixed session. The CSI300 eked out a 0.02% gain, while the Hang Seng Index slid by 1.20%. Japan was on holiday on the day.

The Day Ahead

It’s a quieter day ahead on the Aussie economic calendar. Construction work down figures for the 3rd quarter will be in focus.

With COVID-19 restrictions easing going into the 4th quarter, however, the numbers are unlikely to have a material impact.

On the monetary policy front, RBA member speeches could move the dial, however. RBA Assistant Governor Bullock is scheduled to speak this morning.

From elsewhere, private sector PMIs from Japan and PMIs from the Eurozone and the U.S from the day prior will likely influence.

Away from the economic calendar, we can also expect continued market sensitivity to COVID-19 news.

The Futures

In the futures markets, at the time of writing, the ASX200 was up by 1 point.

For a look at all of today’s economic events, check out our economic calendar.

ASX200: Private Sector PMIs in Focus early in the Session

Economic Calendar

Wednesday, 24th November

Construction Work Done (QoQ) (Q3)

Thursday, 25th November

Private New Capital Expenditure (QoQ) (Q3)

Friday, 26th November

Retail Sales (MoM) (Oct)

The ASX200

It was a bearish start to the week for the ASX200, with a Monday pullback reversing gains from Thursday and Friday

Following a 0.24% rise from Friday, the ASX200 fell by 0.59% to end the day at 7,353.1. Monday’s loss also marked a 7th day in the red from 11-sessions.

There were no major stats from Australia or China to influence the 200 on the day.

The Big-4 banks weighed heavily once more, with travel stocks also hitting reverse in response to the latest COVID-19 news from Europe.

Amongst the worst performers was Qantas, which slid by 4.0%.

The Stats

There were no major stats to provide direction on the day.

The Market Movers

It was a bearish day for the banks. Westpac and CBA slid by 2.08% and by 2.06% respectively to lead the way down. ANZ and NAB fell by 1.98% and by 1.19% respectively, with Macquarie Group ending the day down by 1.01%.

Commodity stocks had a mixed session. Newcrest Mining fell by 1.85%, while Fortescue Metals Group Ltd and Rio Tinto ended the up by 2.13% and by 1.74% respectively. BHP Group rose by a more modest 0.36%.

Joining Newcrest mining in the red were oil stocks. Woodside Petroleum fell by 1.85%.

Other Asian Markets

Elsewhere, it was a mixed session. The CSI300 and Nikkei 225 Seng saw gains of 0.46% and 0.09% respectively, while the Hang Seng Index slipped by 0.39%.

The Day Ahead

It’s a busier day ahead on the Aussie economic calendar. Australian prelim private sector PMIs for November will be in focus early in the session.

While we can expect the numbers to influence, market sentiment to the latest rise in new COVID-19 cases will likely remain key.

Overnight gains from the U.S, however, will provide some early support going into today’s session.

The Futures

In the futures markets, at the time of writing, the ASX200 was up by 15 points.

For a look at all of today’s economic events, check out our economic calendar.

ASX200: A Quiet Economic Calendar Leaves COVID-19 and Commodities in Focus

Economic Calendar

Wednesday, 24th November

Construction Work Done (QoQ) (Q3)

Thursday, 25th November

Private New Capital Expenditure (QoQ) (Q3)

Friday, 26th November

Retail Sales (MoM) (Oct)

The ASX200

It was a 2nd consecutive day in the green for the ASX200 on Friday, marking just a 4th daily gain in 10 sessions.

Following a modest 0.13% increase on Thursday, the ASX200 rose by 0.24% to end the day at 7,396.55.

There were no major stats from Australia or China to influence the 200 on the day.

The lack of stats provided some comfort, with commodity stocks delivering much-needed support on the day.

The Stats

There were no major stats to provide direction on the day.

The Market Movers

It was another mixed day for the banks. ANZ and NAB fell by 0.66% and 0.49% respectively, with Westpac ending the day down by 0.05%. Macquarie Group ended the day up by 1.08%, however, with CBA rising by 0.36%.

Concerns over net interest margins continued to peg back the big-4 on the day, however.

Commodity stocks also had a mixed session. Newcrest Mining fell by 0.72%. BHP Group rose by 1.14%, however, with Fortescue Metals Group Ltd and Rio Tinto ending the up by 0.85% and by 0.83% respectively.

Other Asian Markets

Elsewhere, it was a mixed session. The CSI300 and Nikkei 225 Seng saw gains of 1.08% and 0.50% respectively, while the Hang Seng Index slid by 1.07%.

The Day Ahead

It’s a particularly quiet day ahead on the Aussie economic calendar. There are no material stats due out of Australia or China to provide direction.

The lack of stats will leave commodity prices and COVID-19 news updates to influence.

Following new lockdown measures across a number of EU member states, supply chain disruption may become even more exasperated. Such an eventually would lead to a further pickup in inflation, while also creating greater economic uncertainty.

On the monetary policy front, the PBoC is in action this morning. The markets are not expecting any moves on Loan Prime Rates, however.

The Futures

In the futures markets, at the time of writing, the ASX200 was down by 45 points.

For a look at all of today’s economic events, check out our economic calendar.

ASX200: Weekly Wrap – 19/11/2021

Economic Calendar

Wednesday, 24th November

Construction Work Done (QoQ) (Q3)

Thursday, 25th November

Private New Capital Expenditure (QoQ) (Q3)

Friday, 26th November

Retail Sales (MoM) (Oct) 

The ASX200

It was another bearish week for the ASX200, which fell by 0.62% in the week ending 19th November. In the week prior, the ASX200 had fallen by 0.19%.

Better than expected economic data from China delivered support at the start of the week before a pullback mid-week.

In October, fixed asset investments rose by 6.1%, year-on-year, which was down from 7.3% in September. Economists had forecast a 6.2% rise. China’s unemployment rate held steady at 4.9% in October.

Of greater significance, however, were industrial production figures.

In October, industrial production rose by 3.5%, year-on-year, which was up from 3.1% in September. Economists had forecast a 3.0% increase.

From Australia wage growth figures and the RBA’s monetary policy meeting minutes were also positives for the ASX200.

Inflation jitters and rising concerns over net interest margins for the big-4 banks pulled the majors into the red, however.

The Stats

In the 3rd quarter, wages grew by 0.6% quarter-on-quarter versus a forecasted 0.5% increase. Wages had grown by 0.4% in the previous quarter. Year-on-year, wages grew by 2.2%.

According to the ABS,

  • Private sector wages rose by 2.4% annually, while growth in the public sector continued to track below the private sector.
  • The annual growth rate returned to a more regular September quarter pattern of wage growth, following the labor market disruptions through 2020 and 2021.

Monetary Policy

Salient points from the RBA meeting minutes included:

  • Outbreaks of the Delta variant led to a sharp contraction in the Australian economy in the September quarter.
  • This delayed, but not derailed, the economic recovery that has been under way since the first half of the year.
  • By mid-2022, activity was expected to be broadly in line with the pre-Delta recovery path.
  • Household consumption was expected to underpin output growth in subsequent quarters as restrictions are eased.
  • Inflation in the September quarter had been about 0.25 percentage points higher than expected 3-months earlier.
  • Members noted that, in the central scenario, underlying inflation was expected to pick up gradually towards the end of the forecast period.
  • While the forecast for inflation was higher than previously, members noted that the outlook for inflation in Australia differed from that for many other advanced economies.
  • Members agreed, however, that the distribution of possible outcomes for inflation had widened.
  • Two alternative scenarios in light of the considerable ongoing uncertainty around health outcomes and household consumption were considered.
    • A stronger economic trajectory than the central scenario was possible if households increased spending by more than expected.
    • A weaker trajectory could stem from precautionary saving, alongside possible adverse health outcomes, such as the emergence of a new COVID-19 variant or waning efficacy of vaccines in H12022.
  • Members acknowledged that the risks to the inflation forecast had changed.
  • The main uncertainties related to the persistence of current disruptions to global supply chains and to the behavior of wages at the lowest unemployment rate in decades.

From Elsewhere

Upbeat retail sales figures from the U.S together with a pickup in manufacturing sector activity in NY State and Philly were also market positive.

In October, both retail sales and core retail sales increased by 1.7%, coming in ahead of forecasts.

The NY Empire State Manufacturing Index rose from 19.8 to 30.9, with the Philly FED Manufacturing PMI increasing from 23.8 to 39.0.

The Market Movers

It was a mixed week for the banks. Commonwealth Bank of Australia slid by 9.54% to lead the way down. While quarter earnings were upbeat, a warning over net interest margins weighed heavily.

ANZ (-3.40%), NAB (-4.35%), and Westpac (-2.42%) also struggled.

Macquarie Group bucked the trend, however, rising by 3.35%.

Commodity stocks also had a bearish week. Rio Tinto and BHP Group ended the week down by 2.13% and by 3.32% respectively. Fortescue Metals Group Ltd and Newcrest Mining saw relatively modest losses of 1.78% and 1.70% respectively, however.

Other Asian Markets

Elsewhere, it was a mixed week. The Hang Seng Index fell by 1.10%, while the Nikkei 225 and the CSI300 ended the week up by 0.46% and by 0.03% respectively.

The Week Ahead

It’s a busier week ahead on the Asian economic calendar. From Australia, economic data includes construction work down and private new CAPEX figures ahead of retail sales data on Friday.

Expect the retail sales figures to be key.

From elsewhere, private sector PMIs from the U.S and Europe, together with 3rd quarter GDP numbers for the U.S and Germany will also influence.

Away from the economic calendar, commodity prices will remain a key driver, however, with COVID-19 news updates also likely to influence.