The ASX SPI 200 futures was trading slightly higher up 4 points or 0.1% to 7,371 near 7am AEDT, with the ASX starting the morning in the green.
It follows mixed trading on Wall St, that saw two of three indexes close higher.
In the quirkiest news of the week, a group of crypto fanatics have pooled their resources to buy the 234-year-old copy of the US constitution, which will be sold by Sotheby’s for an expected $15 million to $20 million.
Here’s what we saw:
- The Aussie dollar fell from highs near US72.90 cents to lows near US72.50 cents and was near US72.75 cents in afternoon US trade.
- Global oil prices rose by near 1.2% on Thursday. Commsec says, “Investors debated about how much oil major countries would release onto the market from reserves.”
- Meanwhile Reuters states that China's state reserve bureau said it was working on a release of crude reserves.
- The Brent crude price rose by US96 cents or 1.2% to US$81.24 a barrel.
- The US Nymex crude price rose US65 cents or 0.8% to US$79.01 a barrel.
- Base metal prices were mixed.
- Nickel rose by 1.6%.
- Tin rose 1.3%.
- Lead fell 1.7%.
- Zinc fell 0.8%.
- The gold futures price fell by US$8.80 or 0.5% to US$1,861.40 an ounce.
- Spot gold was trading near US$1,860 an ounce at the US close.
- Iron ore fell by US$2.75 or 3.1% to US$87.20 a tonne.
Australian markets
The ASX is expected to finish the week on a good note.
The same can’t be said of footwear retailer and distributor Accent Group, which will report EBIT of approximately $40 million below expectations due to mandated lockdowns.
The good news for Accent is the current turnaround since Victoria and NSW opened up and the increase in sales and improved gross margins.
WiseTech Global is expected to tell its AGM it is counting on revenue growth of 18 to 25% ($600 million to $635 million) and EBITDA growth of 26% in 2021-22. It is also on track to record a cost reduction run rate target of $20 million to $30 million, to come in at approximately $40 million in FY22.
Sonic Healthcare’s trading update saw its shares rise 3% despite no FY22 guidance due to the variability in the current pandemic.
According to Morgan Stanley (NYSE:MS)'s Sean Laaman, the update suggests upside risk to consensus expectations.
Finally, Victoria is open for business. That means 100,000 people at the MCG for the Boxing Day Test and millions through the turnstile at the Australian Open. If that’s not good for the economy, I don’t know what is.
Australian indices (at time of morning writing)
- ASX 200 rose 0.083% to 7,385.30.
- ASX24 futures were flat at 7,375.
- S&P/ASX Small Ordinaries fell 0.41% to 3,560.50 .
- All Ordinaries rose 0.016% to 7,714.40.
ÚS markets
US trading was mixed yesterday.
Travel and casino groups were hit in response to rising COVID-19 case numbers in Europe.
Shares in retailer Macy's rose 21.2% after it raised annual earnings guidance.
Shares in Nvidia rose 8.3% after the chipmaker beat market estimates with its third quarter earnings.
On the data front, claims for unemployment benefits (initial jobless claims) fell by 1,000 to 268,000 in the past week. The Conference Board leading index rose by 0.9% in October. The Philadelphia Federal Reserve manufacturing index lifted from 23.8 to 39 in November. The Kansas City Federal Reserve manufacturing index eased from 31 to 24 in November.
Apple Inc (NASDAQ:AAPL). moves step closer to its EV revolution
Apple intends to launch a fully autonomous vehicle within four years, as it speeds up its car development plans.
The tech giant is exploring a fully self-driving electric car and a vehicle with fewer self-driving capabilities, however, its main focus is the complete self-driving option.
The four-year time frame is fast tracked from its original estimate of six years.
To meet this goal, it will need to ensure its technology is completed in time. Even Tesla hasn’t fully developed its fully autonomous vehicle to go public.
“We continue to believe it’s a matter of when, not if, Apple enters the EV race,” Wedbush analyst Dan Ives wrote after Bloomberg’s report about Apple came out. Ives sees a 60% to 65% chance that Apple puts out “its own standalone car” by 2025 and it is likely to be in partnership.
“We would rather see Apple partner on the EV path than start building its own vehicles/factories given the margin and financial model implications down the road, coupled with the strategic product risk around such a gargantuan endeavour,” Ives wrote.
Shares of Apple were up 2.6% in afternoon trading Thursday. Apple shares are up 7.7% over the past three months.
US indices
- Dow Jones was down 0.2% to 35,870.95.
- S&P 500 rose 0.3% to 4,704.54.
- Nasdaq rose 0.5% to 15,993.71.
European markets
European share markets were down yesterday. The pan-European STOXX 600 index fell for the first time in seven days, down by 0.5% from record highs.
Energy and mining were 1.7% lower due to commodity prices.
Reuters reported that "Submarines-to-steel group Thyssenkrupp jumped 6.3% after it said profit could more than double next year and it may take its hydrogen unit public."
In London trade shares in Rio Tinto fell by 1.7% and BHP fell by 1.1%.
Let’s talk about house prices
The latest UK house price index shows UK house prices climbed 2.5% in September and a huge 11.8% annually in the run up to the final stamp duty holiday deadline.
Director of Benham and Reeves, Marc von Grundherr, commented: “These latest figures certainly show the last of the stamp duty sizzle as homebuyers made a final push to secure a saving ahead of the extended deadline. For almost every region of the UK to see annual growth hit double figures is quite remarkable and this uplift is being driven as much by first-time buyers as it is existing homeowners.
“This phenomenal rate of growth is likely to slow over the coming months, not only in the wake of the stamp duty holiday but as the usual festive lethargy starts to build and many home buyers and sellers now look beyond the Christmas period with a view to moving.”
Managing director of Barrows and Forrester, James Forrester, commented: “There’s no denying the huge impact of the stamp duty holiday on house prices and it’s only natural that this may start to subside slightly now the final curtain has fallen.
“However, any predictions of a market crash are unlikely to come to fruition as the market remains in very good health. We’re still seeing buyers enter the market at mass and with such high demand for limited stock, sellers are continuing to achieve a very good price for their property.”
Head of Corporate Partnerships at Sirius Property Finance, Kimberley Gates, said: “To date, the Bank of England have refrained from an increase in the base rate of interest and while this may materialise in a month’s time, the likelihood is that interest rates will remain close to historic lows for the majority of 2022, if not longer.
“This means that while the cost of borrowing may start to climb marginally and slow the huge rates of house price growth seen in recent months, it’s unlikely to spook the market and deter homebuyers from transacting altogether.
“We’re yet to see any notable knee-jerk reactions from lenders in anticipation and there remains a wide range of products available for those considering a purchase. As always, the recommended approach is to put your best foot forward in the form of a sizable mortgage deposit, understand what additional fees you may incur and refrain from over-borrowing to ensure you can easily stomach any increase in monthly repayments.”
European indices
- STOXX 600 fell 0.46% to 487.70.
- German Dax fell 0.2% to 16,221.73.
- UK FTSE fell 0.5% to 7,255.96.