Australia Retail Sales Beat Estimates

News Event

From Trading Economics: Retail sales in Australia rose 0.6 percent month-on-month in September of 2016, compared to an upwardly revised 0.5 percent gain in August and beating market estimates of a 0.4 percent rise. It was the highest growth since October 2015, mainly driven by sales in household goods retailing (+2.3 percent) and cafes, restaurants and takeaway food service (+1.0 percent). Sales also went up in food retailing (+0.2 percent) and department stores (+0.5 percent). In contrast, sales dropped in clothing, footwear and personal accessory retailing (-0.6 percent) and other retailing (-0.1 percent).

Market Snap

Market Opening Wrap

In Asian Equity Markets Japan's Nikkei index fell to a 2-1/2-week low on Friday after major stocks like automakers stumbled on continued uncertainty surrounding next week's U.S. presidential election. The Nikkei ended 1.3 percent lower at 16,905.36, the lowest closing level since Oct. 17. The broader Topix fell 1.6 percent to 1,347.04 and the JPX-Nikkei Index 400 declined 1.6 percent to 12,066.29. MSCI's broadest index of Asia-Pacific stocks outside Japan fell 0.4 percent after brushing its lowest levels since early August. It looked set for a loss of 1.6 for the week. The Shanghai Composite Index rose 0.22 percent, while Hong Kong's Hang Seng Index held steady. The Australian index, S&P/ASX 200 fell 0.83 percent.

In Currency Markets the dollar clawed back some ground against its major peers on Friday ahead of the U.S. non-farm payrolls report later in the day, but remained captive to jitters over a tightening U.S. presidential election race. The dollar inched up 0.1 percent to 103.080 yen, having clawed higher from a one-month low of 102.55 struck overnight. The euro fell 0.1 percent at $1.1092. Sterling rose 0.1 percent to $1.2476, after rallying more than 1 percent overnight to a four-week peak. The Australian dollar was little changed at $0.7679, on track to rise 1.2 percent this week. The New Zealand dollar hovered near a one-month high of $0.7342 struck on Thursday, supported this week by a rise in international milk prices and strong local employment data.

In Commodities Markets oil prices edged up on Friday, stabilizing after five straight days of falls, although a rise in U.S. crude inventories and doubts over the ability of producers to coordinate output cuts continued to keep a lid on the market. Brent crude was up 0.28 percent, at $46.48 per barrel. U.S. West Texas Intermediate futures rose 0.25 percent, to $44.77. Spot gold was down 0.3 percent at $1,299.49 an ounce, while U.S. gold futures lost 0.2 percent to $1,300.50 per ounce. Among other precious metals, silver fell 0.2 percent to $18.28 an ounce, and platinum shed 0.12 percent at $991.75. Palladium climbed 1.12 percent at $622.90 an ounce.

In US Equity Markets  the S&P 500 fell for an eighth straight session on Thursday, its longest losing streak since the 2008 financial crisis, as Facebook shares weighed and investors grappled with uncertainty over next week's U.S. presidential election. The S&P 500 lost 0.44 percent, to 2,088.66 and the Nasdaq Composite fell 0.92 percent, to 5,058.41. Facebook lost 5.7 percent as the world's largest online social media network warned that revenue growth would slow this quarter.  The S&P healthcare sector fell 1 percent as a report of a U.S. government pricing probe spooked shares of several drugmakers. Fitbit shares lost 33.6 percent after the wearable fitness device maker's revenue forecast for the holiday shopping quarter fell well below estimates.

In Bond Markets  Japanese government bond prices were mostly higher on Friday as anxiety over the tightening U.S. presidential race hit Tokyo shares and enhanced the appeal of safe-haven debt. The benchmark 10-year JGB yield was unchanged at minus 0.065 percent, while the 30-year yield fell a basis point to 0.475 percent. The 40-year yield was also down a basis point, at 0.565 percent.

Source: Institute of Trading and Portfolio Management