The ASX Today

The ASX is indicating it will rise this morning on the back of a recovery in metal and oil markets.

The ASX is indicating it will rise this morning on the back of a recovery in metal and oil markets. 

Markets overseas gained on Friday, some of this coming back to an upbeat US jobs report. Following that, ASX SPI 200 Futures traders added 23 points to the index.

Today should be a quiet day on the radar before a flurry of central bank activity from tomorrow. The US, Canada and the European Central Bank all meet this week, and locally, the RBA gives speeches on Wednesday.

KEY POINTS

  • Oil prices move higher, metals make a recovery, setting up the ASX for a solid start
  • HIA new home sales data published today
  • No major economic data

On Friday in the US tech stocks rebounded after a sharp selloff earlier in the week. The Dow and S&P 500 were the stars of the session though, buoyed by a jobs report that cemented expectations the US Federal Reserve will raise rates at its meeting.

There was some recovery in Asian indices on Friday on news that China's iron ore imports rebounded in November (but this is after falling to a 20-month low in October). Iron ore, steel and coking coal futures closed 2.6 per cent, 1.9 per cent and 1.8 per cent higher respectively. 

Copper also found some support following a difficult couple of sessions for commodities, but not enough to take it meaningfully higher. Gold is still lacking support, but it has been stuck in the middle of a range for a few days. It's at around $US1248 this morning.

BHP's AFR closed 0.6 per cent higher, reflective of moves to the upside for both commodities and oil, and indicative of a better start for both sectors locally today. That's despite base metals finishing mixed on the London Metal Exchange on Friday. Nickel fell 0.9 per cent and zinc lost 0.3 per cent but other metals rose up to 0.7 per cent. Over the week, all metals, with the exception of tin, fell by between 3.0 - 5.4 per cent.

Oil rose for a second day on Friday after Chinese trade data showed a near-record amount of crude was bring imported — 9.01 million barrels per day in November. WTI and Brent are both up more than 1% to $US57.36 and $US63.40 respectively. 

The Australian dollar is more-or-less where it was this time on Friday, buying US75.07c.

Market Summary: 
IndexLastPoints ( /-)Change (%)
Dow24,329.16117.680.49
S&P 5002,651.5014.520.55
Nasdaq6,840.0827.240.40
FTSE 1007,393.9673.211.00
DAX13,153.70108.550.83

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