Thursday , September 29 2022

ASKS plans to drop open, Vall St slips, American oils are entering the bear market


Action Australian actions are lower, as investors are waiting for the RBA for guidelines on the outlook for the rate. ASKS futures reduced 9 points to 8.45 am AEDT. $ A jumped.

The S & P 500 ended up modestly in New York, dropping 0.3 percent, as all three benchmarks accelerated their losses. Dove finished straight. American oil entered the bear market.

The RBA will announce its latest Monetary Policy Statement this morning and is expected to confirm the bank's optimism. Earlier this week, the Bank encouraged small audits on the growth of the economy and inflation forecasts, as well as a slight revision of the unemployment rate.

"It is also difficult to see that AUD gets too much additional increase from today," said NAB's director of economy, David de Garis, in a morning note.

"Tuesday's published media report published their upgrade to economic growth for this year and the next year from 3% to 3½%, and almost mandatory reduction of the unemployment rate in the medium term to 4¾% for 2020 from 5-5%, given the unemployment already of 5%, "said de Garis. "Although RBA has upgraded growth prospects, they have even noticed uncertainty about the prospects of spending and care in the housing market, something that markets and commentators are well-adjusted."


Earlier Federal Reserves said policy makers voted to maintain interest rates and said that strong labor income and household spending kept the economy in the right direction.

"As was expected at all, the Fed has kept pace on today, and there was nothing in the political statement that would indicate that officials are working on their plans to speed up interest rates again in December," said Michael Pearce in a remark.

"The attention was focused on a small change to the statement after the meeting, which, if anything, was slightly brought," said Pierce.

Mr. Pearce said that the growth of the FDI, previously described as "strong," was observed to be "an accelerated accelerated step earlier in the year," which was highlighted by a sharp slowdown in investments that were discovered in the third quarter. "But with an increase in work and overall economic activity, he continues to describe how he grows with a" strong "rate and inflation in line with his goal, it will not be enough to stop the Fed walking."

Capital Economics has been on the rise since December and another two increases in 2019.

TD Securities said that "risks remain" roughly balanced, "keeping the Fed on track for another rise in prices in December, in our view."

Market rates have already appreciated the 95 percent chance for a December pedestrian who went for a meeting and a 2.2 increase in 2019, pointing out that prices are fairly fair at the current moment, TD added.

Oil in New York fell on the bear market, adding pressure on OPEC and its allies to cut production only months after adding the barrel.

The futures fell by 1.6 percent, which increased the fall from October to more than 20 percent, meeting the common definition of the bear market. The faster than the expected inventory stock broke down the speculators' hopes that the prices could reach $ 100. Crude oil production in the US accelerated to new records, and OPEC production was highest in years, and waivers would allow Iranian cheese to enter the market market despite US sanctions.

"The sentiment has changed," Bloomberg told Bart Melek, head of global commodity strategy at TD Securities in Toronto. "OPEC has put more oil on us than we thought and, above all, these reminders become an obstacle to price support."

West Texas Intermediate crude futures for delivery in December fell to $ US1 to rise to $ 60.67 a barrel on the Nev Iork Mercantile, the lowest level since March. The futures fell on the ninth day, the longest loss since 2014. On October 3, VTI increased to $ 76.41 a barrel.

Technical indicators signal recovery soon, and index of relative strength below 14 days, and the level signaling the market is exceeded.

Today's agenda

Local Data: RBA Statement on Monetary Policy at 11.30h AEDT, Housing Financing September

Data Abroad: China October PPI and IPC; UK third quarter GDP, industrial production September; US PPI Final October, Consumer Mood at the University of Michigan in November

Market selection

SPI futures for 9 points or 0.2% at 5904 at 8.45 am AEDT

AUD -0.2% to 72.57 US cents (night peak 73.02)

Na Vall St: Dov stan S & P 500 -0,3% Nasdak -0,5%

In New York, BHP -1.6% Rio -0.2% Atlases -2.1% Tesla + 0.9%

In Europe: Stokk 50 -0.2% FTSE + 0.3% CAC -0.1% DACS -0.5%

Spot gold is -0.1% to $ 1224.82 per ounce at 13:35 in New York

Brent oil -1.5% to $ 71.01 per barrel

US oil -1.3% to $ 60.89 per barrel

Iron ore + 1.3% to $ 76.27 tons

Dalian Iron Ore + 1.4% to 522 yuan

LME aluminum + 0.3% to $ 1.990 ton

LME copper ranges from US $ 6155 tons

2-year yield: US 2.97% Australia 2.10%

5-year yield: US 3.09% Australia 2.33%

10-year yield: US 3.24% Australia 2.78% Germany 0.45%

US-Australia 10-year gap yielded near 8.50 am AEDT: 46 basis points

From today's financial review

Banks Reject Haine's Reform Ideas: The Big Four banks have launched a fierce defense of vertical integration, criteria for credit and executive bonuses, in response to a provisional report by Haine's Royal Commission.

Cut the sticks to a negative heating plan: Bill Shorten is quickly stuck behind his plans to prevent a negative transfer. Scott Morrison claims he will pay Australia a AAA credit rating.

Women's Lady: Meet Elizabeth Gaines from Fortescue: As Fortescue strives to produce iron ore and lower priced prices, Chief Executive Officer Elizabeth Gaines has her sights to push a mining company outside her area.

United States

The S & P 500 and Nasdaq closed a little Thursday after a Federal Reserve statement, and energy supplies were the biggest withdrawal on S & P, as oil prices fell in the US.

The Fed is holding, says the economy on the way: US Federal Reserve hold interest rates steady and said that current strong income from work and household spending kept the economy on the right track.

"The Fed has recognized that there is a part of the economy that slows down a bit, but it does not deter it from their" gradual increase in language. "It's still not at stake," said Jamie Cock, chief partner at Harris Financial Group, Richmond, Virginia. "There is really nothing to indicate what the market was hoping to have a more desirable attitude. I think that's more than what we call" falconry ".

Telstra CFO Robin Denholm will be president of Tesla: chief financial officer Telstra Robin Denholm leaves a telecommunications giant to replace Elon Muska as president of Tesla.

Kuinci Crosby, the chief market strategist at Prudential Financial in Nevark, in Nev Jersey, said the companies kept costs out of uncertainty over the US-China trade war.

"The slowdown in business spending can slow down the stock market," Crosby said. "Has the Federal Bureau of Statistics depended or maintained a rigid schedule for the rate increase in 2019? What could the Federal Bank stop now? It is clear from this statement that they are looking at everything that could slow down the economy."

The S & P bank index closed the day with a gain of 0.4 percent, while US Treasury revenue grew, as the profit of the banks benefited from an increase in the rate.

Energy stocks are the biggest drop in S & P with a 2.2 percent drop, while US oil pipelines confirmed the bear market, which fell more than 20 percent since their third October, as investors focused on melting global raw materials, which is growing faster than many expected.


The European shares were slightly higher on Thursday, as strong results from Societe Generale, Commerzbank and Sodeka banned concern over corporate earnings.

The Pan-European STOKSKS 600 was close to 0.2 percent. In early jobs, the index rose the most since October 10.

However, the eurozone's leading stock index closed 0.3%, while German DAKS fell by 0.5%, while the French CAC 40 fell by 0.1%.

The shares in the Italian third largest lender, Banco BPM, jumped as much as 8.9 percent, and then increased profits and closed 2.6 percent after net profit in the third quarter was blown by lower costs and sales of assets that shifted flat fees and drop in interest income.

Commerzbank and SocGen increased by 5.2 percent and 2.4 percent respectively after updating solid wages.

Investors have shaken news that the largest bank in Switzerland faces another potentially expensive legal battle, as the US Department of Justice has collected civil accusations over the sale of mortgage securities in the period leading up to the 2008 financial crisis.

The bank said it would strongly oppose any appeal.

Zuercher Kantonalbank analysts estimated more than half of the 1.2 billion Swiss francs UBS singled out for ungrounded legal risks was committed to the US case.

Shares in the Swiss bank grew by 1.3%.


The Hang Seng Index was up 0.3 percent to 26,227.72 points, while the China Business Index rose 0.6 percent to 10,703.59 points.

Working with us, China calls Australia: China has called on Australia to work with it, not against it, in financing regional infrastructure, after Scott Morrison announced $ 3 billion of loans and grants to the Southwest Pacific.

Now China's money influence becomes new sensitivity – AFR Views: Australia repels Chinese money on Pacific Islands and keeps it out of our sensitive infrastructure.

Around the region, the MSCI Asia Index from Ek-Japan was stronger by 0.6 percent, while the Japanese index Nikkei took 1.8 percent.

All but one of Topix's 33 sub-sectors were in a positive territory. Broader Topik rose 1.7 percent to 1681.25. Pre-electoral issues are more numerous from 1733 to 324.

Toshiba jumped 13 percent to nearly two-year high and made the biggest daily profit since July 2017 after the company said it was liquidating its UK nuclear power plant and selling its business to the US for Liquid Natural Gas (LNG).

The company also announced plans to buy up to 40 percent of its own shares.


The Fed is holding, says the economy on the way: US Federal Reserve hold interest rates steady and said that current strong income from work and household spending kept the economy on the right track.

Larry Fink is struggling against lonely deficits: While the Americans watched these week highs, Larry Fink was halfway across the planet warning of a dangerous financial situation in the country.

Sterling consolidated profits after a three-day rally, such as the return of the dollar and the hope of the forthcoming Brekit agreement, have led investors to make a profit.

Against the recoverable US dollar, the pound rose 0.2 percent lower for trade at US $ 1.3106, below a two-week high of $ 1.3176 Wednesday. It traded broadly against the euro at 87.01 pence.

"The fixed market still seems to hope for a friendly agreement, given the instability it shows that it remains fairly relaxed until March 2019," said Antje Praefcke, a currency analyst at Commerzbank. "However, I call for attention: there is still resistance in the British Cabinet," she added.


Baker rose on Thursday as traders recorded a growth against the dollar and a decline in Chinese metal imports due to improved Chinese growth.

China, which consumes nearly half of the world's copper, registered a monthly decline in copper imports by 19 percent in October, data show. The fall was partly related to the impact of holidays.

The three-month copper on the London Metal Exchange ended flatly at $ 6155 a ton, while aluminum rose 0.3 percent to $ 1.90.

"I would still expect a relatively high level of refined copper in the fourth quarter because the arbitration approach was wide open," said Colin Hamilton, head of the BMO Capital Markets survey.

Japan's Sumitomo cut its profit forecast for the full year, blaming prices lower than expected metals, reducing nickel production and the US-China clash.

After falling 1.5 percent to 3878 yuan per ton – the lowest since July 27, the most attractive janvar squeegee on the Shanghai Stock Exchange closed 1.2 percent to 3986 yuan.

Mills are raising steel production until the gain remains strong, pushing more supply to the market, said the iron ore trader in Shanghai. "Some players in the market are looking at the weaker steel market next year," he said.

Data from the Iron and Steel Association in China showed that the average daily production of raw steel at its mills for installations amounted to 1.97 million tons in the period from October 1 to 20, almost in comparison with 1.98 million tonnes in September.

Australian Sharemarket

Fidelity sold Corporate Travel after a price increase: Fideliti International's fund manager was sold out of the goal of a short seller Corporate Travel Management after a period of strong performance of stock prices from rapid growth.

Australian stocks climbed for almost three weeks on Thursday. Index S & P / ASKS 200 index closed 31.3 points, or 0.5 percent, to 5928.2.

Most of the largest banks were among the leading markets on Thursday despite APRA announcing that it will increase total capital for four major banks by 4 to 5 percentage points of risk assets within five years.

NAB was the only major bank that fell when it traded with the previous dividend, closing the session by 3.6 percent lower than $ 24.93.

Street Talk

Greencross, TPG hold a $ 675 million deal on a solid leash

AMA Group is a crash test dummy for "friendly" activism

Private capital is hungry for an agreement with Meat & Wine Co. to the applicants

with Reuters, Bloomberg, AAP

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