Despite the ASX SPI 200 futures being one point higher at 7,408 just after 8am this morning, the ASX is likely to open flat or down.
The Thanksgiving holiday in the US has kept things quiet, while commodities remain muted.
Utilities pushed European markets higher, despite soaring COVID-19 cases that are starting to play on investors’ minds.
Here’s what we know:
- The Aussie dollar fell from highs near US72.10 cents to lows near US71.75 cents and was near US71.90 cents in afternoon North American US trade.
- Global oil prices fell by up to 0.5% on Thursday. The Brent crude price fell by US3 cents or less than 0.1% to US$82.22 a barrel.
- In after-hours trade, the US Nymex crude price fell by US36 cents or 0.5% to US$78.03 a barrel.
- Base metal prices were mixed on Thursday.
- Nickel, tin and copper fell by as much as 0.9% with nickel down the most.
- Other metals rose by as much as 0.7% with aluminium up the most.
- Spot gold was trading near US$1,788.40 an ounce in North American trade, broadly unchanged from on Wednesday.
- Iron ore fell by US$3.35 or 3.2% to US$100.10 a tonne. Iron ore stretched its rally into a fifth straight session yesterday on improved sentiment towards China’s property sector.
Australian markets
The market is likely to be flat today.
That said, there is still a bit going on.
ASIC goes after ANZ
After ASIC reported it was cracking down on the ASX, it is now suing Australia and New Zealand Banking Group (ASX:ANZ) Ltd for breaches of the Credit Act.
Those breaches arose from referrals through its home loan ‘introducer program’ and from unlicensed individuals outside the introducer program.
"ASIC alleges that between June 2016 and March 2018, ANZ breached consumer protection credit laws by accepting customer information and documents from introducers and other unlicensed individuals when this was not allowed," ASIC says.
"ASIC also alleges that some of the documents provided were fraudulent."
ANZ responded, “ANZ has co-operated with ASIC during its investigation and has established a customer remediation program as well as continuously improving its home loan processes and controls,” the bank said.
“ANZ is considering the matters raised in the concise statement and will not be providing further comment given the matter is now before the courts.”
Blackstone pressures Packer
Earlier in the week, Crown Resorts Ltd’s biggest shareholder announced it had received another takeover offer from its second-largest shareholder, Blackstone.
While Crown executives said they would consider the offer, it seems Blackstone is becoming impatient and has now begun direct discussions with the group’s largest shareholder, James Packer’s Consolidated Press Holdings (CPH) which owns 37% of Crown and is being advised by Moelis.
Blackstone is keen to move ahead with an $8.5 billion takeover bid, however, Packer remains tight-lipped.
National booster campaign on the horizon
Prime Minister Scott Morrison has penned a letter to launch a nationwide booster shot campaign that he hopes will prevent further outbreaks and lockdowns.
“Thanks to the high vaccination rates, we are now reopening, our economy is strongly re-emerging, and people can get back to seeing family, travelling and living a more normal life," Morrison writes in the letter.
"An important part of this process is ensuring that every person in Australia has access to vaccine boosters to help maintain the best possible defence against serious illness or death.
"Everyone in Australia is encouraged to take up the vaccine boosters to make sure we can keep each and every one of us safe."
Australian indices (at time of writing)
- ASX 200 fell 0.065% to 7,402.50.
- ASX24 futures fell 0.1% to 7,400.
- S&P/ASX Small Ordinaries fell 0.020% to 3,524.20.
- All Ordinaries fell 0.069% to 7,731.60.
US markets
President Joe Biden pardoned two turkeys for Thanksgiving. Peanut butter and jelly get to live another year or die another day for the Bond fans out there.
“The quiet Thanksgiving Day session in global markets has seen European indices edge slightly higher, taking their cue from a better finish to the day yesterday, especially in the US where the usual pre-holiday buying helped to lift stocks,” said Chris Beauchamp, chief market analyst at IG trading group.
US indices
All markets were closed for Thanksgiving.
European markets
European shares were higher overnight.
Utilities seem to be a good hedge against the latest coronavirus outbreak.
The sector was given a boost by Germany’s push to step up climate protection. This includes faster expansion of renewables and an accelerated coal exit.
Meanwhile, tech stocks were 0.6% higher – the first session of gains in six days.
As it is only four weeks until Christmas, let’s have a look at a couple of alcohol stocks, best known for their spirit(s).
Remy Cointreau SA surged 13.4% to a record high after the French family-owned business raised its full-year profit outlook on strong demand for its premium cognac.
Remy makes the best cognac, which is now behind the company’s stronger-than-expected operating profit in the first half.
Pernod Ricard was 2.5% higher and London-listed Diageo climbed 1%.
Bring on the holiday season: a warm fire to meet the European winter and a fine cognac to keep the cheeks red.
As for COVID fears, Goldman Sachs (NYSE:GS) had this to say, “Moreover, additional vaccinations, booster shots and antiviral drugs should help limit hospitalisations later in the winter. Our baseline is therefore that the containment will remain targeted and regional in nature, with limited national restrictions on mobility, schools and factories.”
Goldman is optimistic that Europe has entered the new COVID-19 restrictions with healthy growth momentum.
“Following three months of declines, the November flash PMIs surprised significantly to the upside, showing broad-based gains across countries and sectors. Moreover, the forward-looking expectations in the PMIs remain comfortably above historical averages, although these are unlikely to fully reflect the latest containment measures.”
European indices
- STOXX 600 rose 0.42% to 481.72.
- German Dax rose 0.3% to 15.917.98.
- UK FTSE rose 0.3% to 7,310.37.