The ASX 200 is down 17 points in mid morning trade as post G20 love-in passion fizzes. Energy can’t even rise on the 4% oil price move. No major company news but RBA “excitement” ahead #ausbiz





US EQUITIES – S&P 500 +25 (+0.92%), Dow +250 (+0.98%), NASDAQ +99 (+1.35%). Stocks are well of the highs.

Main themes

  • US market reacts to the news of a ceasefire on tariffs but “reality check” that China and the US have yet to address issues like intellectual-property theft and non-tariff barriers of US goods in China.
  • 10-year bond recoups early losses and yield traded below 3.0%.
  • Tech names outperformed. Amazon +4.51%. Apple +2.04%

EUROPEAN MARKETS – Broad-based strength. STOXX500 +1.03%, UK FTSE +1.18%, German DAX +1.85%, French CAC +1.00%.


  • The USD was weaker at 96.93.
  • The Aussie dollar is stronger at US73.58c.

BONDS – 2-yr: +1 bp to 2.82%, 5-yr: -1 bp to 2.83%, 10-yr: -2 bps to 2.99%, 30-yr: -4 bps to 3.27%


  • WTI crude futures were up US$2.02 or 4% at US$52.95, on the truce in the US-China trade dispute. Other positive factors included expectations OPEX will reduce supply at the upcoming meeting on December 6 (Russian President Vladimir Putin said his country’s cooperation on oil supplies with Saudi Arabia would continue) and production cuts in Alberta, Canada. In other oil news, Within OPEC, Qatar said on Monday it would leave the producer club in January.
  • Iron Ore – IRESS reports iron ore was unchanged at US$65.00 a tonne. The CommSec site says China Import (Fines 62% Fe) was up US70c at US$66.15 dry ton. (CFR Tianjin port)
  • LME metals – Cu +1.57%, Ni +0.45%, Al +0.82%


  • US economic data – ISM Manufacturing Index 59.3 (consensus 57.2, Prior 57.7). Construction Spending -0.1% (consensus +0.3%, Prior revised to -0.1% from 0.0%)
  • European data – Eurozone Manufacturing PMI at 51.8 (expected 51.5; last 51.5); German Manufacturing PMI at 51.8 (expected 51.6; last 51.6)
  • Fed Speak – New York Fed President John Williams (FOMC voter) at 10:00 a.m. ET
  • Markets to be closed Wednesday, December 5, in recognition of national day of mourning for President George H.W. Bush.

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