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The morning catch up: European markets rebound as tech leads gains; US markets quiet for Thanksgiving

Published 29/11/2024, 09:43 am
The morning catch up: European markets rebound as tech leads gains; US markets quiet for Thanksgiving
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It’s going to be a slow day on the markets, with Aussie shares expected to slide when trade begins. ASX 200 futures were down 0.3% to 8,449 points early this morning.

Wall Street was closed for Thanksgiving, though equity futures pointed to a positive start on Friday. Dow Jones futures rose 0.3%, while S&P 500 and Nasdaq futures gained 0.2% and 0.4%, respectively.

This followed Wednesday’s slippage, where the Dow fell 0.3%, the S&P 500 dropped 0.4%, and the Nasdaq shed 0.6%.

ALP chair to front committee

Construction and Building Unions Super Fund (Cbus) chair Wayne Swan has issued an unreserved apology for delays in death and disability payouts, addressing concerns raised in recent weeks at the superannuation fund's annual meeting.

In notes prepared for an online event, Swan acknowledged the impact of the delays on affected members and their families, outlining steps taken to resolve the issue.

He said that 80% of impacted claims have been settled, with a compensation program underway to address outstanding matters.

Swan, who also serves as the ALP’s national president, is set to appear before a Senate committee hearing chaired by Liberal Senator Andrew Bragg later today.

The hearing will examine the fund’s handling of the claims and its broader response to member concerns.

Europe has a good day

European sharemarkets rose on Thursday, recovering from a two-day slump driven by concerns over potential US tariffs and France's economic challenges.

The continent-wide FTSEurofirst 300 index climbed 0.4%, buoyed by a 1% gain in technology stocks.

Chipmakers ASM International, BE Semiconductor, and ASML (AS:ASML) rose between 2% and 2.5% after reports suggested US restrictions on Chinese chip exports could be less stringent than feared.

Defence stocks also performed well, with Airbus rising 4.1%.

Inflation data provided mixed signals across the region.

Germany's annual inflation held steady at 2.4% in November, while Spain's inflation rate rose to 2.4% from 1.8% in October, aligning with expectations.

In London, the FTSE 100 inched up 0.1%, with insurance stocks gaining 5.9%. Sentiment improved further after European Central Bank President Christine Lagarde warned against the risks of a global trade war, easing market tensions.

Commodities and currencies

Global oil prices edged higher as geopolitical tensions resurfaced, with Israel and Hezbollah trading ceasefire violations.

Brent crude rose 0.6% to US$73.28 per barrel, and US Nymex crude gained 0.6% to US$69.10 per barrel.

OPEC+ also postponed a meeting expected to extend production cuts, adding to market uncertainty.

Base metals were mixed. Copper fell 0.2% on concerns about global demand and a stronger US dollar, while aluminium rose 0.3%. Gold slipped 0.1% to US$2,661.50 an ounce, with traders balancing inflation data against geopolitical risks.

Iron ore futures dipped slightly, trading at US$102.39 per tonne as optimism about China’s steel sector growth was tempered by weaker economic indicators.

On the horizon

In Australia, private sector credit data will be released, alongside earnings from Select Harvests.

Aristocrat Leisure shares trade ex-dividend, while Paladin Energy (ASX:PDN) and Scentre Group host annual general meetings.

On the global stage, Eurozone inflation figures are due, and market participants will watch for signals from China's steel market after signs of recovery in October activity.

Market snapshot

ASX 200 futures: -0.3% to 8,449 points

Australian dollar: +0.1% to 65 US cents

S&P 500: closed for Thanksgiving

FTSE: +0.1% to 8,281 points

EuroStoxx 600: +0.5% to 507 points

Spot gold: +0.2% to $US2,640/ounce

Brent crude: +0.5% to $US73.17/barrel

Iron ore: flat at $US103.10/tonne

Bitcoin: -1.4 % to $US95,100

Source: ABC

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