Australian shares are poised for a modest fall at the open, while global markets were mostly sidelined by the US Thanksgiving public holiday. The S&P/ASX 200 is on track to close out the week with a solid 2 per cent gain.
US markets were closed on Thursday (Friday AEDT), and they are set for a half-day on Friday with a 1pm close. Futures trading was muted. The S&P 500 is 1.1 per cent below its record high, and the volatility index is at a three-week low.
The probability of a quarter of one percentage point rate cut by US Federal Reserve policymakers next month reached 86.9 per cent.
“The near-term trend for US equities has turned back to positive,” Fundstrat Global’s technical head Mark Newton said, with expectations that policymakers will cut interest rates when they meet next month. “I am a bit more constructive on the prospects for a positive December, given the sharp rally this week, which has helped market breadth to begin to rebound after a difficult early part of November.”
Newton said he’s expecting Nvidia, which has had a rough month, to rally sharply from mid-December into early February. He said the decline in technology stocks overall from late October “looks complete”.
Market highlights
ASX 200 futures are pointing down 33 points or 0.4 per cent to 8599.
All US prices near 3pm New York time:
AUD +0.2% to US65.30¢Bitcoin +2.1% to $US91,485Futures: Dow -0.03% S&P flat Nasdaq -0.00%Gold -0.1% to $US4157.61 an ounceBrent oil +0.3% to $US63.34 a barrelIron ore -0.2% to $US103.10 a tonne10-year yield: US 3.99% Australia 4.49%Today’s agenda
Private sector credit data for October is scheduled to be released at 11.30am on Friday. In New Zealand, November consumer confidence is on deck.
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