Australian Stock Market Report - Morning
Russia has won the right to hold the Football World Cup in 2018 and Qatar will hold the event in 2022.
US pending home sales soared by 10.4pct in October after falling 1.8pct in September. Economists had tipped a 1.8pct fall. Jobless claims rose by 26,000 in the latest week to 436,000, above forecasts for a result near 425,000. But the four-week average of claims fell by 5,750 to 431,000 - the lowest result since August 2 2008. And US comparable chain store sales in November were up 5.8pct on a year ago.
The European Central Bank will maintain its liquidity safety net for vulnerable banks, maintaining its three month liquidity operations through to March ´´with full allotment´´.
European shares lifted to two-week highs on Thursday following further encouraging economic data in the US and reports that the European Central Bank had bought Portuguese and Irish bonds. The FTSEurofirst index rose by 1.6pct with the UK FTSE up 2.2pct and German Dax was higher by 1.3pct.
US sharemarkets rose again on Thursday on further positive signs for the economy. At the close of trade the Dow Jones was higher by 106pts or 1.0pct with the S&P 500 up 1.3pct and the Nasdaq was higher by 30pts or 1.2pct.
US treasuries eased modestly on Thursday (yields higher). While economic data was again better than expected, traders remain cautious ahead of key payrolls data later tonight. US 2yr yields were steady near 0.54pct and US 10yr yields rose by 3pts to 3.00pct.
The US dollar eased further against major currencies in US trade on Thursday and investors trimmed safe-haven flows. The Euro lifted from lows near US$1.3060 to US$1.3240, heading into the US close near US$1.3220. The Aussie dollar rose from lows near US96.30c to US97.75c, heading into the US close near US97.55c. And the Japanese yen strengthened from levels near 84.35 yen per US dollar to JPY83.50, ending US trade near JPY83.90.
US crude oil prices hit 2-year highs on Thursday as investors became more optimistic about economic growth in the US. The Nymex crude oil contract rose by US$1.25 or 1.4pct to US$88.00 a barrel.
Base metal prices rose again on the London Metal Exchange on Thursday as investors became more encouraged about the outlook for the global economy. Zinc rose 4.9pct and lead lifted 4.5pct with other metals gaining between 0.4-1.5pct. And the gold price also rose with the Comex gold futures price up by US$1.00 an ounce to US$1,389.30. The CRB futures commodity index rose by 1.0pct to fresh three-week highs.
Ahead: In Australia, the Performance of Services index will be released as well as data on car sales for November. David Jones will hold its annual general meeting. In the US, non-farm payrolls data is released.
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