ASX200: Australian GDP and China Manufacturing Data in Focus

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 3^rd 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, 3^rd 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.