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ASX200: A Quiet Economic Calendar Leaves Commodities and COVID-19 News in Focus
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Market reaction to economic data from the Eurozone and the U.S and private sector PMIs from Japan will influence early on. Inflation and COVID-19 remain concerns, however.
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.
About the Author
Bob Masonauthor
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.
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