Markets Overview

  • ASX SPI 200 futures up 0.2% to 7,267.00
  • Dow Average up 0.3% to 34,194.06
  • Aussie up 0.5% to 0.6765 per US$
  • U.S. 10-year yield little changed at 3.6927%
  • Australia 3-year bond yield fell 3 bps to 3.24%
  • Australia 10-year bond yield fell 4.5 bps to 3.54%
  • Gold spot up 0.3% to $1,755.24
  • Brent futures little changed at $85.34/bbl

Economic Events

  • 11:00: (AU) Australia to Sell A$700 Million 3.25% 2025 Bonds

Trading volumes are lower due to the Thanksgiving holiday, with no cash US equity market trading. Wall Street futures rose after the S&P 500 closed at a two-month high Wednesday. Asia’s equities benchmark climbed.

Minutes from the Fed gathering earlier this month indicated several officials backed the need to moderate the pace of rate hikes, even as some underscored the case for a higher terminal rate. This adds weight to expectations the central bank will raise rates by 50 basis points next month, ending a run of jumbo 75 basis point increases.

Data Wednesday also showed US business activity contracted and unemployment applications rose as the economy cools.

Oil edged lower as the European Union considered a higher-than-expected price cap on Russian crude and signs of a global slowdown increased.

Meanwhile, Bank of America Corp. said its private clients are flocking to bonds and out of stocks amid fears of a looming recession. Bond funds attracted inflows for a 39th straight week, strategists led by Michael Hartnett wrote in a note. The strategists favor holding bonds in the first half of 2023, with stocks becoming more attractive in the last six months of next year.

Gold rose for a third day on the Fed minutes. The precious metal has been hurt by the US central bank’s aggressive monetary-tightening policy to curb inflation, which has pushed up bond yields and the dollar and in turn sent bullion tumbling about 16% from its March peak.

In Asian trading, mainland Chinese stocks underperformed as investors weighed the impact of record Covid-19 cases against signs of loosening monetary conditions. Official comments broadcast Wednesday indicated the People’s Bank of China would allow banks to reduce capital reserves to stimulate growth.

Other News

British-born Flossie has set a new record as the world’s oldest living cat.

Guinness World Records have officially awarded the title to the feline, who was born in 1995.

The cat has had a number of owners during her lifetime, but currently resides in southeast London.

Her new owner says she is in remarkably good shape for her advanced years.

Flossie was handed over to the charity at the age of 26 when her owner couldn’t look after her anymore.

“We were flabbergasted when vet records showed Flossie to be nearly 27 years old,” said Naomi Rosling, co-ordinator at the Kent branch of Cats Protection.

“She’s the oldest cat I’ve ever met, at least 120 in human years. If I’m in such good shape when I’m her age, with someone who does what’s best for me when I need it most, I shall be a very happy lady.”

(Euro News)