The rally in risk continued overnight as shares and industrial commodities added to recent rises, although a strengthening US dollar took some gloss off the gains. Bond market pressure also continued. With the base for a trade agreement between China and the US in place, investor attention is likely to turn to imminent corporate reporting around the globe.
Futures are pointing to a positive opening for share markets across the Asia Pacific region. Current account and trade data on Japan is a focus given the recent pressure on the yen as investors move back from extreme defensiveness. Australian retail sales (Nov, f/c 0.3%, prev 0.3%) gain additional significance given the failure of consumer stocks to participate in the overnight rally. The consumer discretionary sector fell in Europe and the US.
Treasury Wine Estates (AX:TWE) surprised Australian investors with an unanticipated update this morning. Despite uncertainty in Asia and the US the company lifted first half estimates and re-iterated its guidance for 25% earnings growth this year. The announcement cuts across recent concerns about consumer behaviour and may catalyse a higher share price for TWE and the sector.