ASX200: Business Confidence and Commodities in Focus

The downside came in spite of a pickup in both oil and gold prices through the session.

The Stats

There were no material stats from Australia or China for the markets to consider through the Australian session.

From the weekend, trade data from China was market positive. China’s USD trade surplus widened from US$66.76bn to US$84.54bn. Economists had forecast a narrowing to US$65.55bn.

• Year-on-year, exports were up 27.7% versus a forecasted 24.5%. In September, exports had risen by 28.1%.
• Imports increased by 20.6%, versus a forecasted 25.0%. Imports had risen by 17.6% in September.

The Market Movers

It was a mixed day for the banks. Macquarie Group and ANZ saw red, falling by 0.75% and by 1.56% respectively. By contrast, Westpac rose by 1.29% to partially recover last week’s pullback. CBA and NAB ended the day up by 0.38% and by 0.62% respectively.

Commodity stocks had a bullish session, however. Newcrest Mining led the way once more, rising by 1.20%. BHP Group (+0.80%), Fortescue Metals Group Ltd (+0.42%), and Rio Tinto (+0.38%) saw relatively modest gains.

Other Asian Markets

Elsewhere, it was a mixed session, with the CSI300 rising by 0.12% to buck the broader market trend.

The Hang Seng Index and the Nikkei 225 ended the day with relatively modest losses of 0.53% and 0.35% respectively.

The Day Ahead

It’s a quiet day ahead on the Asian economic calendar. NAB Business Confidence figures for October will be in focus early in the session.

Following last week’s RBA Statement of Monetary Policy, business investment is key to a sustainable economic recovery. Expect weak numbers to test support.

Away from the economic calendar, corporate earnings and commodity prices will need monitoring.

The Futures

In the futures markets, at the time of writing, the ASX200 was up by 9 points.

For a look at all of today’s economic events, check out our economic calendar.