An overview of activity since markets closed in Sydney and a preview of the day ahead.
--------------Markets Overview (6:30 a.m. Sydney)--------------- EQUITIES SPI 200 FUTURES 4764 +12 S&P/ASX 200 4740.70 +37.70 NZX 50 INDEX 3321.77 +5.38 DOW JONES INDUS. AVG 11362.91 -43.93 NIKKEI 225 9694.49 -38.43 NASDAQ COMPOSITE INDEX 2570.80 -9.25 FTSE 100 INDEX 5875.19 +25.23 S&P 500 INDEX 1217.06 -6.19 HANG SENG INDEX 24710.60 -253.77 REUTERS/JEFFERIES CRB INDEX 318.92 +3.67 BONDS (YIELD) AU 10 YR BOND 5.289 +.013 US 10 YR BOND 2.64 +.09 NZ 10 YR BOND 5.363 +.033 US 30 YR BOND 4.23 +.11
CURRENCIESAUD/USD 1.0075 NZD/USD 0.7828 EUR/USD 1.3825 USD/JPY 81.68 AUD/EUR 0.7287 GBP/AUD 1.5909 AUD/JPY 82.30
COMMODITIESSPOT GOLD 1404.93 -4.63 COMEX GOLD 1404.20 +1.00 SPOT SILVER 28.0363 +.2888 NYMEX CRUDE 86.66 -.40 ---------------------------------------------------------------
Market action since Sydney’s end of day:
EQUITIES New York: U.S. stocks fell as financial companies and consumer companies dragged benchmark gauges lower for a second day, overshadowing a rally in energy stocks. *Bank of America Corp., Wells Fargo & Co. and Morgan Stanley dropped at least 1.3 percent, pacing declines in financial shares. Kraft Foods Inc. slid 1.8 percent, the biggest drop in the Dow Jones Industrial Average as discretionary spending stocks slid 0.7 percent. *The S&P 500 slipped 0.3 percent to 1,219.19 at 12:53 p.m. in New York, after rising as much as 0.3 percent. *The Dow declined 41.06 points, or 0.4 percent, to 11,365.78. U.S. stocks rallied last week as the Federal Reserve announced a $600 billion bond-purchase plan to boost economic growth, a tactic known as quantitative easing.
London: European stocks climbed, sending the Stoxx Europe 600 Index to a two-year high, after companies from Barclays Plc to Adecco SA posted better-than-estimated results. *Barclays, Britain’s third-largest bank, added 4 percent after saying its capital ratio remained strong. Adecco advanced 3.7 percent after the staffing company posted a jump in third-quarter profit. Hermes International SCA soared 7.6 percent after the luxury-goods maker lifted its full-year sales forecast. *The Stoxx 600 gained 0.6 percent to 273.46 at the 4:30 p.m. close in London, taking the benchmark index to its highest level since Sept. 22, 2008. The gauge has climbed 18 percent since its low this year on May 25 as investors speculated that the U.S. Federal Reserve would start a second round of asset purchases.
Tokyo: Japanese stocks fell, sending the Nikkei 225 Stock Average to its first drop in five days, after the gauge reached its highest close since July and as the yen strengthened, cutting the outlook for export earnings. *Canon Inc., the world’s largest camera maker had climbed 7.4 percent in the past four days, lost 1.3 percent. Toyota Motor Corp., the world’s largest carmaker, fell 0.4 percent after the yen appreciated against the dollar. *The Nikkei 225 Stock Average fell 0.4 percent to 9,694.49 at the close in Tokyo. *The broader Topix slid 0.2 percent to 839.95 after rising as much as 0.2 percent before the yen’s sudden gain against the dollar during the midday break. About eight shares dropped for every seven that gained.
Sydney/Wellington: Australia’s S&P/ASX 200 Index declined 0.8 percent to 4,740.70 at the 4:10 p.m. close of trading in Sydney.
New York: The dollar gained versus the euro and the yen as yields on U.S. Treasuries increased after a $24 billion auction of 10-year notes. *The euro fell versus most major currencies amid concern some governments in Europe may struggle to pay their debt, curbing demand for the region’s assets. *The dollar advanced 0.6 percent to $1.3836 per euro at 2:15 p.m. in New York, from $1.3920 yesterday. It gained 0.4 percent to 81.54 yen, from 81.18. The euro fell 0.2 percent to 112.75 yen, from 113.01 yen.
New York: Treasuries fell, with yield on 30-year bonds rising to the highest level in five months, after the government’s sale of $24 billion in 10-year notes drew the lowest demand since February. *Yields on 30-year bonds climbed for a fifth day on speculation today’s sale of $16 billion of the securities may receive tepid demand with the Federal Reserve focusing its purchases of Treasuries among shorter-maturity debt. *The yield on 30-year bonds rose 11 basis points, or 0.11 percent, to 4.23 at 2:11 p.m. in New York, the highest since June 15. *The current 10-year note yield rose nine basis points to 2.64 percent. Ten-year yields touched a 2010 high of 4.01 percent on April 5 and a low of 2.33 percent on Oct. 8.
New York: Copper topped $4 a pound, extending a rally to a 28-month-high as speculation mounted that the dollar will weaken and as commodity prices surged. *The Thompson Reuters/CRB Index of 19 raw materials rose for a ninth straight day, heading for the longest string of gains since March 2005. *Copper futures for delivery in December added 7.7 cents, or 1.9 percent, to $4.0335 a pound at 11:00 a.m. on the Comex in New York. Earlier, the price reached $4.0435, the highest level since July 3, 2008. July 3, 2008. The metal rose to a record $4.2605 in May 2008.
New York: Gold advanced to another record on speculation that European governments may struggle to pay debt, boosting demand for the precious metal as an alternative to currencies. *In New York, gold futures rose to an all-time high of $1,424 an ounce on concern that Ireland and Greece will struggle to repay bondholders, and spending cuts may stifle growth in the region. Before today, gold gained 28 percent this year, heading for the 10th straight annual gain. *Gold futures for December delivery rose $15.10, or 1.1 percent, to $1,418.30 an ounce at 11:24 a.m. on the Comex in New York. The metal climbed to an all-time high for the fourth straight session. The price for immediate delivery reached a record $1,424.35.
New York: U.S. crude-oil inventories probably increased to the highest level in 18 months, threatening a rally in futures prices, as refineries idled units because of lower profit margins, a Bloomberg News survey showed. *Supplies rose 1.4 million barrels, or 0.4 percent, in the seven days ended Nov. 5 from 368.2 million a week earlier, according to the median of 14 analyst estimates before an Energy Department report today. That would leave stockpiles at the most since May 8, 2009. Twelve respondents forecast a gain and two a decline. *Crude oil for December delivery declined 52 cents, or 0.6 percent, to $86.54 a barrel at 1:49 p.m. on the New York Mercantile Exchange. Futures ended yesterday at $87.06 a barrel, the highest settlement since Oct. 8, 2008.
WHAT TO WATCH *Australia consumer confidence at 10:30 a.m. in Sydney *Australia home loan approvals at 11:30 a.m. in Sydney *Reserve Bank of New Zealand financial stability report at 9:00 a.m. in Wellington
ANALYST RATINGS: Upgrades, downgrades, new coverage *Adelaide Brighton Ltd was cut to ‘Neutral’ at JPMorgan
BLOOMBERG TV: Selected guests (Sydney time) *11:10 a.m. Macquarie Head of Asian Strategy Michael Kurtz *1:40 p.m. BNP Paribas Chief Economist Richard Iley *2:00 p.m. World Bank President Robert Zoellick *6:00 p.m. UK Chancellor George Osborne