FPG Overnight Headlines 25/11/2022

Overnight headlines

Following advances in Europe on expectations that the US Federal Reserve is close to ending its rate-rising cycle, Australian equities are expected to increase marginally at market open.

ASX futures up by 14 points (0.19%) to 7267.

The local currency increased by 0.5%. The dollar spot index according to Bloomberg decreased by 0.3%.

Bitcoin’s price on bitstamp.net increased by 0.8% to $US16,565.

The Thanksgiving holiday saw a closure of the US financial markets. On Friday, trading will resume, although markets will close early at 1pm local time.

According to Reuters, the STOXX 600 index for Europe closed at a new three-month high, driven by increases in stocks related to real estate.

The STOXX 600 index for all of Europe increased 0.5% to reach its highest point since August 18.

While predicting a deteriorating recession for Sweden’s economy, Riksbank increased borrowing prices by 0.75 points to 2.5 percent and indicated more tightening is necessary to control inflation.

Despite the financial suffering that consumers are experiencing, the Bank of England must keep hiking interest rates to get inflation back to 2%, according to two policymakers.

Deputy Governor Dave Ramsden stated that his preference was for additional tightening and cited concerns about the tight labour market and strong inflation expectations. Catherine Mann, a fellow rate-setter, expressed similar worries and claimed that little could be done through monetary policy to assist people struggling with rising energy and food prices.

Market movements

• Bitcoin gained 0.8% to US$16,565;
• AUD increased by 0.5% to 67.63 cents
• Stoxx 50 +0.4% FTSE +0.02% CAC +0.4% DAX +0.8%
• Spot gold increased by 0.3% to US$1755.40/oz.
• Brent crude decreased by 0.1% to US$85.34/barrel.
• Iron ore increased by 1.3% to US$96.45/tonne.
• The 10-year yield was US$3.69%. Germany 1.84% Australia 3.54%

Today’s agenda

Local data: NZ retail sales volume for the third quarter, and ANZ November consumer confidence

Overseas data: On Sunday, China will announce its October industrial profits.