Overseas Market Report – U.S. Stocks End Higher After Strong Jobs Report
U.S. stocks finished higher on Friday as investors considered the implications of a strong jobs report.
The Labour Department reported that the U.S. economy added 211,000 new jobs in November, enough to keep the Federal Reserve on track to raise interest rates later this month.
Following its semi-annual meeting, OPEC announced on Friday that it will raise its production ceiling to 31.5 million barrels of oil a day, according to reports. Oil futures traded lower on the news.
The U.S. trade deficit rose 3.4% in October as exports of American-supplied goods and services fell to the lowest level in three years, the Commerce Department said.
At the close, the Dow, the S&P 500 and the NASDAQ had each gained around 2.1%.
For Australian ADRs listed on the NYSE, BHP Billiton added 25 cents (0.93%) to $26.49, ResMed fell 52 cents (0.89%) to $57.80, Telstra Corporation lost 8 cents (0.39%) to $19.93, Spark New Zealand gained 5 cents (0.46%) to $10.88 and Westpac lifted 15 cents (0.63%) to $23.88.
At 7:45 AM (AEDT), the 10-year Treasury note yield was 2.27% and the 5-year yield was 1.71%.
There was no major corporate news on Friday.
European markets were lower.The FTSE 100 fell 0.6%, while the French CAC 40 and Germany's DAX each fell 0.3%.
Asian shares were also lower.The Shanghai Composite fell 1.7%, the Nikkei 225 fell 2.2% and the Hang Seng slipped 0.8%. India's Sensex closed 1.0% lower.
Australian Market Report – Local Market Expected To Open Flat
The Australian market looks set to open flat despite solid gains on Wall Street following a decent US jobs report. At 0817 AEDT on Monday, the December share price index futures contract was unchanged at 5,155. US nonfarm payrolls increased 211,000 in November, the US Labor Department said, while September and October data were revised to show 35,000 more jobs than previously reported. Analysts said the report, which also showed the unemployment rate held steady at five per cent, would most likely pave the way for the Federal Reserve to raise rates this month for the first time in nearly a decade. Locally, in economic news on Monday, the Ai Group/Housing Industry Association performance of construction index (PCI) and the ANZ job advertisements series, both for November, are due out. No major equities news is expected
Friday 4 December – close. Local stocks plummeted this morning as the Australian investor sentiment deteriorated following the ECB's stimulus decision overnight. The local sharemarket hovered at its daily lows throughout the day, with the big banks and miners leading the fall. All sectors finished in the red, with health care being the worst performer. The Australian dollar depreciated against most major currencies.
The All Ordinaries slumped 75.20 points to 5,201.50 while the S&P/ASX 200 dropped 76.10 points to 5,151.60.
In This Issue
The Star Entertainment Group (SGR)
The Star Entertainment Group announced that the Company has been advised by the Queensland Office of Liquor and Gaming Regulation that the Queensland Attorney General and Minister for Justice and the Governor in Council have granted the necessary approvals for Genting Hong Kong and relevant individuals and entities connected to or associated with it to increase their aggregate potential voting power in the Company from 10% up to a maximum of 24.99%. In relation to the Genting HK Parties, these regulatory approvals override the general shareholder restriction in the Company's Constitution that a person's voting power must not exceed 10% without the written consent of both the New South Wales Independent Liquor and Gaming Authority and the Queensland Minister. SGR fell 9 cents to $4.78.
Arrium (ARI)
Arrium announced that it will be removed from the S&P ASX 200 Index with effect from 18 December 2015. ARI lost 0.4 cents to $0.07.
Energy
World oil prices have fallen after OPEC members failed to agree an oil production ceiling at a meeting that ended in acrimony. Iran said it would not consider any production curbs until it restores output scaled back for years under Western sanctions. A final statement was issued on Friday with no mention of a new production ceiling, apparently allowing member countries to continue pumping oil at current rates into a market that has been oversupplied. OPEC's secretary general Abdullah al-Badri said the body could not agree on any figures because it could not predict how much oil Iran would add to the market in 2016, as sanctions are withdrawn under a deal reached six months ago with world powers over its nuclear program.
Recent Contacts & Presentations
Tox Free Solutions (TOX), AWE Limited (AWE), Ausdrill (ASL), GR Engineering (GNG), Medusa (MML), Resolute (RSG), Kingsgate (KCN), Troy (TRY), Northern Star (NST), Sandfire (SFR), Regis (RRL), Saracen (SAR), Sino Gas & Energy (SEH), Dacian (DCN), Buru Energy (BRU), Carnarvon Petroleum (CVN), Otto Energy (OEL), Empire Oil & Gas (EGO), FAR Limited (FAR), Central Petroleum (CTP), Senex Energy (SXY)
Please read Argonaut's Important Disclaimers & disclosures
Log in to the client area below to download the full Morning Note PDF
