FPG Market Updates: 5th January 2022 – Local shares are set to advance

Market Headlines

ASX futures were up 33 points or 0.5 per cent to 7032 near 6am AEDT.

The Australian dollar was up 1.7 per cent at US68.40¢.

On Wall Street, US stocks reversed early losses to rise on Wednesday as investors digested disparate economic data and snapped up big-tech stocks that were battered during Tuesday’s selloff.

The S&P 500 and the Nasdaq 100 jumped after data from the Institute for Supply Management showed improving supply chain conditions, declining input prices and slower demand. All were developments that the US Federal Reserve would welcome.

Today’s agenda

Overseas data: FOMC meeting minutes, Wednesday US time (Thursday AEDT). Eurozone PPI, Thursday. US ADP employment change, initial jobless claims, Thursday. China trade, Caixin PMI, Thursday.

Market highlights
ASX futures were up 33 points or 0.5 per cent to 7032 near 6am AEDT.

ASX futures up 33 points or 0.5% to 7032 near 6am AEDT
AUD +1.7% at US68.40¢
Bitcoin +2.0% at $US16,970
Dow +0.6% S&P 500 +1.1% Nasdaq +1.0%
FTSE +0.4% DAX -0.3% CAC +0.5%
Gold +0.7% at $US1853.17 an ounce
Brent oil -4.2% to $US78.63 a barrel

United States

The S&P 500 rose 1.1 per cent as of 12.08pm New York time. The Nasdaq 100 rose 0.9 per cent. The Dow Jones Industrial Average rose 0.7 per cent. The yield on 10-year Treasuries declined 0.03 of a percentage point to 3.71 per cent.

Europe

A report showing French inflation unexpectedly slowed added to signs of easing price pressure in the euro area. The Stoxx Europe 600 Index had broad gains, rsising 1.4 per cent. Germany’s 10-year yield declined 0.12 of a percentage point to 2.27 per cent. Britain’s 10-year yield declined 0.16 of a percentage point to 3.49 per cent.

Asia

News of China considering further support for property developers boosted shares in Hong Kong. While China’s about-turn from its Covid Zero policy has been widely cheered by investors, it still raises complicated questions about what it means for monetary policy, global inflation and demand for goods and services.

Currencies

US Dollar Spot Index fell 0.5 per cent. The euro rose 0.7 per cent to $US1.0618. The British pound rose 0.8 per cent to $US1.2069. The Japanese yen fell 0.8 per cent to 132.01 a dollar. Ether rose 3.5 per cent to $US1253.23.

Commodities

WTI fell 4.6 per cent to $US73.37 a barrel. Gold futures rose 1 per cent to $US1864.30 an ounce.