Aussie stocks fall, energy slows Wall St lower

On Wall Street, energy punctuated the losses. Oil briefly fell below $92 a barrel after tensions eased in Ukraine; Ukrainian and NATO officials concluded it was a Ukrainian defensive missile that crashed in Poland, killing two people.

Moreover, the sentiment of impact has been further pushed back on the path to higher US interest rates.

In a note, Goldman Sachs’ Jan Hatzius said the company was adding another 0.25 percentage point rise to its forecast. “We continue to expect a 50 basis point hike in December and 25 basis points in February and March, and we have now added a 25 basis point hike in May. fed funds at 5-5.25% (vs. 4.75-5% previously and a 4.9% spike in market prices).

Among the reasons for Goldman’s review: “Further rate hikes may be needed next year to keep the economy on a below-potential growth path now that fiscal tightening has all but run its course, leaving the burden on monetary policy to ensure that growth remains weak until inflation comes down.

At 11:30 a.m. AEDT, October employment data will be released. NAB said earlier: “There is greater than usual uncertainty around the October numbers given the unfavorable sample volatility. We expect employment at 10,000 and for the unemployment rate to rise one-tenth to 3.6 percent.

TD Securities, however, expects employment to decline by 10,000. “The rapid rise in the cash rate has likely further cooled economic activity and dampened labor demand, and we we expect gradual job losses in the coming months.

“We expect the participation rate to remain high at 66.6% and the unemployment rate to drop to 3.7% from 3.5% previously. Thus, the Q4 RBA forecast for unemployment at 3.4% looks increasingly unlikely to come true as the labor market softens towards the end of the year.

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Today’s agenda

Local: October Labor 11:30 AEDT; New Zealand Q3 PPI at 8:45 a.m. AEDT

Overseas data: October final Eurozone CPI; October US Housing Starts and Building Permits, November Philadelphia Fed Index and Kansas City Fed Index

Market Highlights

ASX futures down 10 points or 0.14% at 7120 around 5:50 a.m. AEDT

  • AUD -0.5% to 67.24 US cents
  • Bitcoin -0.5% to US$16,534 as of 5:55 a.m. AEDT
  • On Wall St at 1:55 p.m.: Dow -0.1% S&P -0.7% Nasdaq -1.3%
  • In New York: BHP -2.2% Rio -1.7% Atlassian -6.8%
  • Tesla -3.3% Apple -0.9% Amazon -1.2% Netflix -0.6%
  • In Europe: Stoxx 50 -0.8% FTSE -0.3% CAC -0.5% DAX -1%
  • Spot gold -0.3% at US$1,772.89/oz at 1:54 p.m. New York
  • Brent -1.6% to $92.40 a barrel
  • Iron ore +2.5% to $98.10 per ton
  • 10-year yield: United States 3.72% Australia 3.72% Germany 1.99%
  • Price in the United States at 1:54 p.m. in New York

United States

Retail sales rose 1.3% last month after remaining flat in September. Economists polled by Reuters had forecast sales to rise 1.0%. Retail sales are primarily goods and are not adjusted for inflation. They rose 8.3% year-on-year in October.

The surge in sales last month was led by motor vehicles, with auto dealership revenue rebounding 1.3%, reflecting significant improvements in supply. Furniture store sales increased 1.1%.

By contrast, Target fell after saying third-quarter profits fell by more than half after being forced to cut prices as Americans felt the pressure of inflation.

The Minneapolis retailer expressed caution about sales and earnings in the fourth quarter due to what it has seen from customers in recent weeks. They wait for sales rather than buying goods at full price, and also find ways to reduce their expenses in other ways.

Europe

Europe’s STOXX 600 index ended a four-day winning streak on Wednesday, led by losses in Mercedes Benz Group shares.

The pan-European stock index closed down 1%. Auto stocks fell 3.7% to register their biggest one-day percentage decline in nearly seven weeks.

Mercedes Benz fell 6.2% after the premium German automaker cut prices for some of its EQE and EQS models in China due to changing market demand for electric vehicles (EVs) top of the line.

“For the (European) automotive sector, this kind of impact on sales comes from restrictions imposed by China and fears of a recession, although Europe and China have a good trade relationship,” Raed said. Alkhedr, chief market analyst at Equiti.com.

Britain’s Chancellor of the Exchequer Jeremy Hunt is due to give a budget statement on Thursday, in which the Treasury is expected to announce £55bn in tax hikes and spending cuts to put the national debt back on a sustainable footing and restore confidence investors.

Goods

Nickel plunged more than 10% in London, quickly eroding a strong weekly gain in a sawing move that brings back memories of the extreme volatility seen during a short searing squeeze.

Prices fell rapidly on the London Metals Exchange on Wednesday afternoon, tumbling dramatically after supply fears sparked erratic rallies amid tough trading conditions on Monday and Tuesday.

The bout of volatility is the most extreme since March’s historic price spike, and this week’s whiplash has raised fears that plummeting liquidity following the controversial squeeze could wreak further havoc on the stock market. nickel in London.

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