In US economic data, Redbook chain store sales rose by 7.5% in the past week compared with a year ago (prior week: +6.8%). The Richmond Federal Reserve manufacturing index rose from -10 to -9 in November (survey: -8). And the Richmond Federal Reserve services index lifted from -8 to -2 in November (survey: +3).
European sharemarkets rose on Tuesday, supported by a 4.8% lift in oil & gas stocks. European Central Bank officials made statements on interest rates. Austria’s central bank chief Robert Holzmann said he would favour a third straight 75 basis point lift in rates at the next European Central Bank meeting. Bundesbank President Joachim
Nagel said that even a 50bp lift in rates is a “strong” move. Economists expect a 50 bps move, according to a Reuters poll. The continent-wide FTSEurofirst 300 index lifted by 0.8%. And the UK FTSE 100 rose by 1.0%.
US sharemarkets rose on Tuesday. Energy led gains, supported by higher crude prices. Shares in retailer Best Buy rose 12.8% after forecasting a smaller drop in annual sales than previously estimated. But shares in discount retailer Dollar Tree fell by 7.8% after the company cut its annual profit forecast for a second time. At the close of trade, the Dow Jones index was up by 398 points or 1.2%. The S&P 500 index lifted by 1.4% and the Nasdaq index lifted by around 150 points or 1.4%.
US long-term government bonds rose on Tuesday (yields lower). Traders await the release of minutes of the last Federal Reserve meeting on Wednesday. US Treasury sold US$35 billion of 7-year notes at a yield of 3.89% into weak demand. US 10-year Treasury yields fell by around 6 points to near 3.77%. But US 2-year Treasury yields rose by around 1 point to near 4.54%.
Major currencies were firmer against the US dollar in European and US trade. The Euro rose from lows near US$1.0245 to highs near US$1.0300 and was near highs in late US trade. The Aussie dollar rose from lows near US66.05 cents to highs near US66.50 cents and was near US66.45 cents in late US trade. And the Japanese yen rose
from near 142.00 yen per US dollar to near JPY141.10 and was around JPY141.20 in late US trade.
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Global oil prices rose by up to 1.1% on Tuesday. Saudi Arabian Energy Minister Prince Abdulaziz bin Salman reportedly denied a Wall Street Journal report that OPEC was considering boosting output. The UAE, Kuwait, and Algeria also indicated that no review of OPEC policy was being undertaken. Concerns about China’s Covid-19
lockdown policies tempered gains in crude prices. Reuters reported that Beijing was shutting parks, malls and museums, while other cities resumed mass testing. The Brent crude oil price rose by US91 cents or 1.0% to US$88.36 a barrel. And the US Nymex crude oil price rose by US91 cents or 1.1% to US$80.95 a barrel.
Base metal prices were generally firmer on Tuesday with copper up 1.4% and aluminium futures up 2.1%.
The gold futures price rose by US30 cents an ounce to US$1,739.90 an ounce. Spot gold was trading near US$1,740 an ounce in late US trade. Iron ore futures fell by US9 cents or 0.1% to US$91.45 a tonne.
Originally published by CommSec