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

By:
Bob Mason
Published: Nov 29, 2021, 21:22 UTC

Following Monday's loss, upbeat private sector PMIs from China and a lack of negative COVID-19 news would be needed to support a bullish day ahead.

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Economic Calendar

Tuesday, 30th November

Building Approvals (MoM) (Oct)

Current Account (Q3)

Private Sector Credit (MoM) (Oct)

Wednesday, 1st December

AIG Manufacturing Index (Nov)

GDP (YoY) (Q3)

GDP (QoQ) (Q3)

Thursday, 2nd December

Trade Balance (Oct)

The ASX200

It was another bearish day for the ASX200 on Monday.

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 3rd 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.

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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