Australia Retail Sales Rise More than Expected

News Event

From Trading Economics: Retail sales in Australia rose 0.5 percent month-on-month in October of 2016, compared to a 0.6 percent gain in September. It was the third straight month of gain and above market estimates of a 0.3 percent rise, driven by sales in food retailing (+0.6 percent from +0.2 percent in the prior month), other retailing (+0.8 percent from -0.1 percent), household goods retailing (+0.7 percent from 2.3 percent), retailing (+0.6 percent from +0.2 percent), and cafes, restaurants and takeaway food service (+0.4 percent from 1.0 percent ). In contrast, sales dropped in department stores (-0.4 percent from +0.5 percent), footwear and personal accessory retailing (-0.4 percent from -0.6 percent). In October 2015, retail sales rose 0.6 percent.

Market Opening Wrap

In European Equity Markets stocks edged lower on Thursday in a broad-based sell-off, halting a two-day rally and retreating from the previous session's three-week highs, led lower by falls in TalkTalk and Elekta. The STOXX 600 was down 0.6 percent. The STOXX Europe 600 Oil and Gas index was up 1.1 percent, while the basic resources index was up 0.1 percent, the only two sectors in positive territory. Top faller was TalkTalk, down 4.6 percent, after a downgrade by JP Morgan to "underweight" from "neutral". Sweden's Elekta also fell 4.6 percent after the medical equipment firm missed expectations with its results. Daily Mail and General Trust rose 6.5 percent after beating earnings expectations despite a decline in ad revenue.

In Currency Markets the dollar trimmed losses on Thursday against a group of currencies as a private-sector report showed the manufacturing sector grew faster-than-forecast in November, supporting the view the U.S. economy is expanding at a solid clip in the fourth quarter. The euro was little changed at $1.0589. Against the yen, the dollar added 0.17 percent to 114.62 yen, while against the Swiss franc  held steady at 1.0165. The Australian dollar remained stronger, with Aussie up 0.15 percent at $0.7394, while Kiwi fell 0.41 percent to $0.7055. Sterling gained 0.78 percent to trade at $1.2604. The dollar index was down 0.16 percent at 101.34, which was above its session low of 101.06.

In Commodities Markets  oil prices rose more than 4 percent on Thursday, with Brent crude at its highest in about 16 months, extending gains after OPEC and Russia agreed to restrict output to speed up the rebalancing of a long-oversupplied market. Benchmark Brent futures for February delivery jumped as much as 4.8 percent to $54.36 a barrel, the highest since July 30, 2015. U.S. crude rose 4 percent, to $51.42, after rising to a high of $51.72 a barrel, about 20 cents below its 2016 high. Spot gold was down 0.3 percent at $1,169.77 an ounce, off an earlier 10-month low of $1,163.45. Silver was 0.9 percent lower at $16.34 an ounce, while platinum was down 0.9 percent at $903.25. Palladium was flat at $769.50.

In US Equity Markets  losses in technology stocks dragged down the Nasdaq and the S&P 500 in choppy trading on Thursday, while bank and energy stocks propped up the Dow. The Dow Jones Industrial Average was up 0.36 percent, at 19,191.59. The S&P 500 was down 0.12 percent, at 2,196.23 and the Nasdaq Composite was down 0.97 percent, at 5,272.24. Facebook fell 3.2 percent after Canaccord Genuity cut its price target on the stock, while Microsoft , Apple and Alphabet fell between 1.5 percent and 2.2 percent. The S&P 500 energy index rose 1.55 percent, with shares of Exxon and Chevron leading the gainers. Skechers rose 13.7 percent after Buckingham Research upgraded the shoemaker's stock to "buy" from "neutral".

In Bond Markets U.S. Treasury yields rose on Thursday with benchmark yields touching their highest levels in just under a year and a half on expectations that gains in oil prices and U.S. President-elect Donald Trump's policies would fuel higher inflation. Benchmark 10-year yields hit a 16-1/2-month high of 2.468 percent, while 30-year yields hit a more than one-year high of 3.132 percent. U.S. five-year yields hit a more than 5-1/2-year high of 1.92 percent, while seven-year yields hit a more than two-year high of 2.274 percent. U.S. two- and three-year yields hit six-day highs of 1.151 percent and 1.456 percent, respectively.

Source: Institute of Trading and Portfolio Management