The Australian sharemarket is set to edge higher this morning, with futures pointing to a rise of 18 points, or 0.2%, at the open.
US markets started the Thanksgiving holiday-shortened week with gains — the Dow Jones rose by 440 points or 1% to a new record high, while the S&P 500 gained 0.3% and the Nasdaq index added 51 points or 0.3%.
The broader US equity market rose for a sixth consecutive session, while small caps hit a record high on enthusiasm over Scott Bessent being named US President Trump's treasury secretary. The Russell 2000 index of smaller stocks jumped 1.5%.
Hedge fund manager Bessent is seen by financial markets as a gradualist in relation to applying proposed Trump policies, particularly where tariffs and trade are concerned.
- Company movers included department store operator Macy’s Inc. whose shares fell 4% after revealing that an employee concealed $100 million in expenses.
- Super Micro Computer shares rose almost 13%, having surged 78% last week, on hopes the server maker will remain listed on the Nasdaq.
- Bath and Body Works shares rose 15% after the body care products maker reported better-than-expected earnings and raised its full-year guidance.
- The two largest homebuilders in the United States, Lennar (NYSE:LEN) and D.R. Horten, each rose by around 5%, aided by a steep drop in long-term bond yields.
European markets also rose overnight, adding to the gains of the end of last week, after the ECB’s chief economist said the Central Bank 'should be able to lower official interest rates to levels that no longer restrict activity'.
The latest figures in Europe continued to paint a picture of an economy challenged by headwinds.
The influential German IFO Survey saw its Business Climate Indicator fall more than expected in November, down from 86.5 to 85.7, with reports from survey contributors highlighting a 'weak German economy' and 'concerns around trade'.
- The continent-wide FTSEurofirst 300 index rose less than 1 point.
- In London, the UK FTSE 100 index gained 0.36%.
Currencies
Currencies were stronger against the US dollar in European and US trade.
- The Euro rose from as low as US$1.0429 to US$1.0530 and was near US$1.0495 in late US trade.
- The Aussie dollar slid from a high of US65.50 cents to US64.87 cents and was near US65.01 cents in late US trade.
- The Japanese yen eased from 154.72 yen per US dollar to JPY153.55 and was near JPY154.16 in late US trade.
Commodities
Global oil prices fell on Monday as the prospect of a Middle East ceasefire weighed on prices. There are reports that Israel and Lebanon have agreed to the terms of a deal to end the Israel-Hezbollah conflict.
- The Brent crude price fell $2.09 or 2.8% to US$73.08 a barrel.
- The US Nymex crude price slumped US$2.18 or 3.1% to US$69.05 a barrel.
Base metal prices firmed on Monday, benefitting from a moderation in the recent rally in the US Dollar.
- Copper futures rose 0.4%.
- Aluminium futures improved 1%.
The gold futures price slumped US$83.20 or 3.1% to US$2,628.20 an ounce on Monday as safe haven demand eased. Spot gold was trading near US$2,625 an ounce in late US trade.
Iron ore futures firmed slightly, up US7 cents or 0.1% to US$102.01 a tonne on Monday.
What’s on today?
In Australia, Webjet Group releases earnings. Brickworks, Pilbara Minerals and Ramsay Healthcare all host AGMs.
In the US, the minutes of the Federal Reserve Open Market Committee (FOMC) November meeting are issued. Data on home prices, consumer confidence, manufacturing, and new home sales are all scheduled.
What’s happening in small caps?