The Santa Rally is well and truly underway in global stock markets despite geopolitics rocking the boat, with the ASX 200 also expected to stay (mostly) green in early December – futures are tipping the local bourse to open 0.14% higher today.
Wall Street enjoyed a hike after Federal Reserve chairman Jerome Powell was as close to dovish as he’d been in some time; he lauded the U.S. economy as “stronger than expected.”
Powell’s speech in New York City – where he also mentioned rate cuts – saw all three major U.S. indices finish up. The tech-stuffed Nasdaq, buoyed particularly by Atlassian’s 6.6% jump on its Amazon web services deal, was the best finisher at +1.3%. The Dow Jones followed with a +0.7% lift; the S&P 500 also added +0.6%.
European investors were more cautious, though that’s no surprise considering the turmoil in France: In a dramatic vote overnight, the parliament ousted Michel Barnier’s government – and focus now turns to President Emmanuel Macron.
The fall of the French government marks the first no-confidence collapse since 1962.
Similarly, the aftershocks of the South Korea martial law crisis and a possible impeachment for Yoon Suk Yeol still weighs on markets and will for some days.
In the bond market, the yield on the 10-year Treasury in the U.S. fell to 4.20%.
Back home, alternative asset manager HMC Capital (ASX:HMC) will be acquiring French renewable energy developer Neoen’s Victorian assets for $950 million.
Charter Hall Group (ASX:CHC) has started its hunt for a capital partner to fund a $3 billion luxury apartment and hotel complex that will – should it get the cash injection to be built – overlook Sydney’s Hyde Park.
Aussie mining titan Rio Tinto (ASX:RIO) is facing calls to ditch its dual-listing; some believe the company would fair better if it dropped its spot on the London stock exchange.
Treasurer Jim Chalmers has also pledged to keep “big spending” out of the mid-year budget as Labor continues to face pressures over inflation.
Looking at forex, the Aussie dollar is buying 64.3 US cents.
To commodities, which are in the greenback,
Iron Ore has slipped slightly to $105.75 a tonne in Singapore,
Brent Crude is trading at $72.40,
Gold is trading at $2,651 per ounce, and,
US natgas futures are at $3.06 per gigajoule
That’s Market Open, I’m Isaac McIntyre, stick with us for HotCopper’s Market Update.