ASX200: Private Sector Credit and China Private Sector PMIs in Focus

Following last Friday’s 1.73% tumble, the ASX200 fell by 0.54% to end the day at 7,239.8.

Positive economic data from Australia failed to provide support as COVID-19 uncertainty continued to weigh on the Asian markets.

While mining found support following the flight to safety on Friday, the big-4 banks continued to struggle, along with oil stocks. Travel stocks also saw deep red as governments globally looked to curb the spread of the Omicron strain.

The Stats

In the 3^rd quarter, company gross operating profits increased by 4.0% quarter-on-quarter versus a forecasted 3.0% increase. Profits had risen by 7.1% in the previous quarter.

According to the ABS,

• Government subsidies supported company gross operating profits.
• Wages and salaries fell by 0.8%, however.

The Market Movers

It was a bearish day for the banks. ANZ and NAB slid by 1.66% and by 1.63% respectively, with CBA falling by 1.09%. Macquarie Group and Westpac saw relatively modest losses of 0.65% and 0.76% respectively.

Commodity stocks had a mixed session, however Fortescue Metals Group Ltd rallied by 2.39% to lead the way, with Rio Tinto and BHP Group ending the day up by 0.99% and by 1.42% respectively. Newcrest Mining bucked the trend, however, falling by 0.37%.

Other Asian Markets

Elsewhere, it was also a bearish session. The Nikkei and the Hang Seng Index fell by 1.63% and by 0.95% respectively, with the CSI300 ending the day down by 0.18%.

The Day Ahead

It’s a busier day ahead on the Aussie economic calendar. From Australia, stats include building approvals, current account, and private sector credit figures. Expect the RBA’s private sector credit figures to draw the greatest interest.

From China, however, NBS private sector PMI figures for November will be the key stats of the day.

Away from the economic calendar, expect market reaction to FED Chair Powell overnight and COVID-19 news to influence.

The Futures

In the futures markets, at the time of writing, the ASX200 was up by 41 points.

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