FPG Overnight Headlines 22/11/2022

Overnight headlines

Despite declines on Wall Street, Australian equities are anticipated to open higher. After Saudi Arabia rejected plans to pressure OPEC to increase output, oil prices slightly declined, recovering from a more than 5% decline.

ASX futures increased by 32 points, or 0.45%.

Philip Lowe, governor of the RBA, will speak on the supply side, prosperity, and price stability at the annual CEDA dinner in Melbourne in 2022.

Because of growing worries about an increase in COVID cases in China, the local currency fell 1% and struggled to hold US66; meanwhile, the Bloomberg dollar spot index increased by 0.7%.

The rise of COVID cases, according to Oxford Economics, will have a significant negative impact on China’s short-term economic activity. Oxford claimed that it was more hesitant than the general consensus on an impending departure from zero-COVID.

In our base case, we expect that China would maintain its “dynamic zero-COVID policy” through the first half of 2023, with targeted lockdowns in urban areas where infections are on the rise.

This timing takes into account both China’s political calendar, which includes the annual “Two Sessions” plenary meetings in March and the announcement of important economic policy directions around this time, as well as our estimation that China wouldn’t be sufficiently prepared epidemiologically for a reopening until mid-2023.

Bitcoin was 3.8 dollars cheaper at $US15,791 on bitstamp.net.

The 10-year US Treasury note’s yield remained unchanged at 3.83 percent.

All three of the major Wall Street benchmarks ended the day lower, with Disney’s surge following its CEO replacement offsetting

With approximately an hour remained in the session, the energy sector led four of the S&P 500’s 11 industry sectors lower.

Market movements

• Bitcoin fell 3.8% to $US15,791;
• AUD down 1.1% to 66.01 US cents
• The Dow fell 0.1% on Wall Street. S&P -0.4% Nasdaq fell 1.1%
• Stoxx 50 in Europe fell by 0.4% FTSE -0.1% CAC -0.2% DAX -0.4%
• Spot gold fell by 0.7% to US$1737.86/oz;
• Brent crude fell by 0.1% to US$87.52/barrel;
• iron ore fell by 2.9% to US$96.25/tonne;
• the 10-year yield was US$3.83%. Germany 1.98% Australia 3.58%

Today’s agenda

Local: Price Stability, the Supply Side, and Prosperity: A Speech by Philip Lowe, RBA Governor, at the 2022 Annual CEDA Dinner in Melbourne

Overseas data: October trade balance for New Zealand; November consumer confidence for the Eurozone; UK Public borrowing in October: United States Nov. Richmond Fed;

The OECD will release its most recent Economic Outlook, which includes analysis and predictions for the global economy, OECD members, G20 nations, and important partners.