The ASX is set to rise today, with ASX 200 futures up 0.3% to 8,479 points.
The ASX200 climbed 42 points (0.51%) last week to close at 8,436. With December underway, the index has gained 11.14% year-to-date, reflecting a steady advance marked by intermittent pullbacks, as seen during the past week.
Leading sectoral performance came from Information Technology (+3.16%), Health Care (+3.13%), Real Estate (+2.02%) and Consumer Discretionary (+1.91%). Conversely, Energy (-3.14%), Financials (-0.79%), Utilities (+0.03%) and Industrials (+0.10%) lagged behind.
At the stock level, notable performers included EML Payments (ASX:EML) (+51.88%), SG Fleet (+23.97%), Life360 (+20.48%) and Webjet (+19.77%). In contrast, City Chic Collective (-25.6%), Humm Group (-19.75%), Betmakers Technology Group (-16.67%) and Pilbara Minerals (-8.43%) struggled during the week.
“This week's key event on the local data calendar is the release of Australian Q3 GDP data. Australian GDP increased by 0.2% in Q2 (the June quarter) for an annual rate of 1.0%," IG Markets analyst Tony Sycamore noted.
"While the Australian economy grew for an eleventh consecutive quarter, excluding the COVID-19 pandemic period, Q2 was the lowest growth rate since 1991-92,”
“Looking ahead, the market consensus is for a 0.5% rise in Q3, which would see the annual growth rate remain soft at 1% YoY. Despite expectations of another slow quarter of growth, the interest rate market is not anticipating a first 25bp RBA rate cut until May 2025.”
Strong close in the US
US stocks closed the week and month on a strong note, with the Dow Jones and S&P 500 reaching fresh record highs. In November, the Dow Jones surged 7.5%, the S&P 500 gained 5.7%, and the Nasdaq rose 5.2%.
The rally reflects growing optimism surrounding the incoming administration, particularly as expectations build that the President-elect’s choice for Treasury Secretary could help moderate more aggressive policy initiatives.
“Looking ahead, all eyes this week will be on the November jobs report and upcoming speeches from Fed officials including Fed chair Powell,” Sycamore said.
“Last month (October), the US economy added just 12,000 jobs, falling well short of the anticipated 113,000. This disappointing figure was partially attributed to hurricane disruptions, while strikes accounted for a 37,000 decline.
"On a brighter note, the household survey, presumably less impacted by hurricanes, showed the unemployment rate holding steady at 4.1%. This month (November) the US economy is expected to add 200,000 jobs, and the unemployment rate is expected to tick up to 4.2%. The rates market is currently pricing in a 65% chance of a 25bp rate cut at the FOMC meeting on December 19.”
European sharemarkets advance
European sharemarkets ended higher on Friday, driven by investor analysis of the latest inflation figures. Annual eurozone consumer prices rose to 2.3% in November from 2.0% in October, matching expectations.
Technology and mining stocks led gains, each advancing 1.6%. Anglo American (JO:AGLJ) was a standout performer in the mining sector, climbing 5.4%.
The FTSEurofirst 300 index gained 0.6% on Friday and ended November up 1.1%.
In London, the FTSE 100 inched 0.1% higher on Friday and posted a 2.2% gain for November, marking its strongest monthly performance since July.
Currencies mixed; commodities see varied movement
Currencies
Currencies saw mixed results against the US dollar.
- The Euro fell from US$1.0594 to US$1.0541, settling near US$1.0575 at the US close.
- The Australian dollar rose from US$0.6494 to US$0.6526, ending near US$0.6510.
- The Japanese yen strengthened, moving from JPY150.50 to JPY149.46, before closing at JPY149.75.
Commodities
Global oil prices retreated on Friday, weighed down by reduced supply concerns from the Israel-Hezbollah conflict and expectations of increased production in 2025, despite OPEC+ output cuts.
- Brent crude fell 0.5% to US$72.94 per barrel.
- US Nymex crude dropped 1.0% to US$68.00.
- Over the week, Brent declined 3.1%, and Nymex lost 4.8%.
Base metals rose on Friday amid signals of stronger demand from China.
- Copper and aluminium futures each gained 0.3% and 0.2%, respectively, ending the week up 0.2%.
- Gold futures increased 0.6% to US$2,681 an ounce, supported by a weaker US dollar and geopolitical tensions, though bullion fell 1.2% over the week.
- Iron ore futures rose 0.3% to US$102.44 a tonne on Friday, buoyed by a more positive economic outlook for China, finishing the week up 0.5%.
What about small caps?
It has been a quiet start on the small cap news front this first trading day in December. However, you can read about the following and more throughout the day.