In US economic data, consumer credit rose by US$24.98 billion in September after lifting US$32.24 billion in August (survey: US$30 billion)

European sharemarkets were mixed on Monday. Travel & leisure (+1.6%) and technology stocks led the gains. Shares in Ryanair rose 3.8% after posting a record profit. But shares in luxury retailers fell with LMVH down 1.5%. Also shares in Telecom Italia jumped 10.7% as top investor Vivendi would start talks with Italy’s new right-wing
government on a new plan to create a national broadband company. The continent-wide FTSEurofirst 300 index rose by 0.2% to 7-week highs. But the UK FTSE 100 index fell by 0.5% in response to a stronger pound sterling.

US sharemarkets rose on Monday. Investors are focussed on midterm election results and inflation data over the week. Shares in Walgreens Boots Alliance gained 4.1% as VillageMD, a primary care provider backed by the pharmacy chain, said it will acquire Summit Health in a deal valued at nearly US$9 billion. Shares in Meta
Platforms rose 6.5% on reports that it was planning to cut staff numbers. At the close of trade, the Dow Jones index was up 424 points or 1.3%. The S&P 500 index rose by 1.0% and the Nasdaq index lifted by 89 points or 0.9%.

US treasuries were weaker on Monday (yields higher). Investors are now focussing on midterm elections and inflation data released later in the week. US Treasury this week will auction US$40 billion in three-year notes on Tuesday, US$35 billion in 10-year notes on Wednesday, and US$21 billion in 30-year bonds on Thursday. US 10-
year yields rose around 6 points to near 4.22%. And US 2-year yields rose by around 7 points to near 4.72%.

Major currencies were firmer against the US dollar in European and US trade. The Euro rose from lows near US$0.9920 to highs near US$1.0032 and was near US$1.0020 at the US close. The Aussie dollar rose from lows near US64.10 cents to highs near US64.90 cents and was near US64.75 cents at the US close. And the Japanese yen lifted from near 147.55 yen per US dollar to JPY146.10 and was near JPY146.60 at US close.

 

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Global oil prices eased around 0.8% on Monday. Traders cited mixed signals from China on potential easing of Covid-19 restrictions. The Wall Street Journal says that Chinese leaders are considering reopening the economy but there is no set timeframe. Reuters notes that China’s imports and exports contracted unexpectedly in October,
but its crude oil imports rebounded to the highest level since May. The Brent crude oil price fell by US65 cents or 0.7% to US$97.92 a barrel. The US Nymex crude oil price fell by US82 cents or 0.9% to US$91.79 a barrel.

Base metal prices were mixed on Monday. Copper, nickel and aluminium fell by as much as 2.6%. Other metals rose with lead up 1.8%. Weak Chinese exports and import data weighed on prices while weaker greenback provided support.

The gold futures price rose by US$3.90 an ounce or 0.2% to US$1,680.50 an ounce. Spot gold was trading near US$1,675 an ounce at the US close. Iron ore futures rose by US$1.98 a tonne or 2.3% to US$87.14 a tonne.

Originally published by CommSec