Investing.com - Australian shares are likely to take a hit on Thursday, despite a positive session in New York ahead of the US Thanksgiving break.
Oil prices took a nearly 5% dip due to worries that Saudi Arabia may be having difficulty persuading other OPEC members to cut production. However, iron ore continued its upward trend in Singapore, gaining 1% to $US134.60 per tonne. Steel production across 71 countries that report to the World Steel Association saw a slight increase of 0.6% to 150.0 million tonnes in October compared to last year.
This increase in output is largely due to higher production rates in India, Japan, the US, South Korea, and Russia. In contrast, China's production declined by 1.8% from October 2022, producing 79.1 Mt last month. ANZ Research highlighted that the 20% price increase last month negatively affects steel mill profitability. They predict that the winter production curbs will further decrease steel production, and the weaker construction activity will keep steel demand soft.
Despite data indicating a cooling trend, US consumers remain cautious of inflation. The University of Michigan's final November reading indicates that Americans expect prices to increase at a 4.5% annual rate over the next year.
Locally, Origin Energy Ltd (ASX:ORG) shareholders are set to vote on a $20 billion takeover offer from Brookfield and EIG Partners. Several companies are scheduled to host annual general meetings, including Evolution Mining, Insignia Financial, Karoon Energy, New Hope, Pilbara Minerals, Regis Resources, and Weebit Nano.
China's troubled shadow bank Zhongzhi has issued an insolvency warning, despite expectations that China will take further steps to bolster its economy. Duncan Wright from Pantheon Macroeconomics predicts that Chinese policymakers will focus on restructuring the economy away from debt-heavy sectors towards advanced manufacturing sectors.
OpenAI has confirmed that Sam Altman will return as CEO with a new initial board. Despite expectations of significant fluctuations following the company's results, Nvidia’s shares were less than 2% lower in afternoon trading in New York.