Home Commodities S&P 500, Nasdaq push higher as commodities rally

S&P 500, Nasdaq push higher as commodities rally

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The local currency rose 1.2 per cent to US67.01¢ near 5.10am AEDT; the Bloomberg spot dollar index slid 1.2 per cent. The index is poised for its biggest weekly loss since March 2020.

On bitstamp.net, bitcoin was 2.2 per cent lower to $US16,946 at 5.05am AEDT; it briefly traded below $US16,500 earlier. The cryptocurrency has tumbled 19 per cent in the last week, extending its year-to-date drop to more than 63 per cent.

Crypto exchange FTX filed US bankruptcy proceedings on Friday and Sam Bankman-Fried stepped down as CEO, after a rapid liquidity crisis at the cryptocurrency group that has prompted intervention from regulators around the world.

The yield on the US 10-year note was unchanged at 3.81 per cent. There was no cash trading in US government bonds because of Veterans Day.

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Brookfield’s Origin buyout may require market power ‘undertaking’ If the $18.4 billion deal goes ahead, the ACCC will hold a public review into possible market concentration concerns.

We know who you are’: AFP targets Russian Medibank hackers: The Australian Federal Police has identified the individual criminals responsible for stealing and releasing Medibank patient data and says they are part of a loose group of Russian hackers.

Next week’s agenda

Local: The RBA will release its latest meeting minutes on Tuesday; Third-quarter age price index on Wednesday, November labour force data on Thursday.

Overseas data: The UK government’s autumn economic update is set for Thursday; China will release October retail sales and industrial production data on Tuesday; US will release retail sales early Thursday; a raft of Federal Reserve policymakers are expected to speak.

Market highlights

ASX futures up 15 points or 0.21 per cent to 7177 near 5am AEDT

  • AUD +1.24% to 67.01 US cents
  • Bitcoin -2.2% to $US16,946 at 5.05am AEDT
  • On Wall St near 1.15pm: Dow -0.3% S&P +0.6% Nasdaq +1.5%
  • In New York: BHP +5.8% Rio +6% Atlassian +2.4%
  • Tesla +1.2% Apple +1% Amazon +3.9% Netflix +4.3%
  • In Europe: Stoxx 50 +0.6% FTSE -0.8% CAC +0.6% DAX +0.6%
  • Spot gold +0.5% to $US1764.78/oz at 1pm New York
  • Brent crude +1.7% to $US95.23 a barrel
  • Iron ore +4.7% to $US92.25 a tonne
  • 10-year yield: US 3.81% Australia 3.65% Germany 2.15%
  • US prices as of 1.04pm New York

United States

US consumer inflation expectations in the short and long run increased in early November, while sentiment retreated to a four-month low amid rising borrowing costs.

Consumers expect prices will climb at an annual rate of 3 per cent over the next five to 10 years, up from 2.9 per cent in October and the highest in five months, the University of Michigan’s preliminary November survey showed Friday. They see costs rising 5.1 per cent over the next year, compared to last month’s 5 per cent.

The sentiment index dropped to 54.7, worse than all forecasts in a Bloomberg survey, from 59.9 in October.

“Continued uncertainty over inflation expectations suggests that such entrenchment in the future is still possible,” Joanne Hsu, director of the survey, said in a statement.

The data were collected Oct. 26-Nov. 9, before a key government measure of inflation showed that consumer price growth cooled in October by more than forecast.

Europe

European shares notched their best weekly performance in nearly eight months on Friday.

The STOXX 600 index ended the session up 0.1 per cent at a 11-week high, with financial services, mining and retail stocks leading the gains.

The index marked weekly gains of 3.7 per cent.

China-exposed luxury giants Hermes International, Kering, and LVMH jumped between 2.4 per cent and 2.8 per cent. Richemont too soared 10.5 per cent on better-than-expected sales and margins.

The European basic resources jumped 2.6 per cent as prices of base metals shot up.

Commodities

Almost all major commodities traded higher following China’s move to reduce the time that travellers and close contacts of infected people must spend in quarantine, a significant amendment to the Covid Zero policy.

Oil futures in New York added as much as 4.2 per cent. Copper, precious metals and agricultural commodities from corn to wheat all climbed.

“Fundamentally the more China can restart its economy the greater the positive impact on global growth expectations,” said Keith Wildie, head of trading at Romco Group.

“But most importantly China has historically been an exporter of deflationary pressures and if we see that deflationary force back within the global economy then the positive impact on commodity prices and asset markets in general could be exceptionally significant in the near term.”

Base metals traded on the London Metal Exchange jumped with zinc soaring as much as 6.4 per cent and aluminum gaining 3.8 per cent. In the US, Chicago soybean futures had the biggest intraday increase in a month.

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