The market started the new week with a subdued tone after flat performances across both the NASDAQ and S&P 500 over the last week.
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The S&P 500 finished its half-day Friday session with a small increase of 0.06 per cent and the NASDAQ was slightly down by 0.11pc.
However, over the month, US stocks have again led the charge with the NASDAQ higher by 11pc and S&P500 up by 9pc month to date.
The improvement in market risk appetite in November was mainly driven by investor expectations that many central banks are almost done with their tightening cycles.
Global bond yields have continued to decline with the European 10-year rates down 9-10bps and the UK 10-year rate is down 7bps.
Commodity performances were mixed on Friday last week with WTI crude down by 2pc and Brent down 1pc as the OPEC+ meeting got pushed back to November 30. On the other hand, iron ore performed well with price steady above $US130 per tonne with a 4pc gain over the last week.
Another important piece of data released last week was the S&P Global US Purchasing Managers' Index (PMI). The index suggested a slight drop in manufacturing business operating conditions as the index declined from 50.0 in October down to 49.4 in November.
The report found improvement in manufacturing production efficiency, but the demand conditions remain stagnant.
The Service PMI pushed up marginally from 50.6 to 50.8 and remained in the expansionary zone.
Coming to the holiday season, some early indications suggest retail spending will be positive with some big online retailers reporting sales up 6pc compared to the same time last year, though price inflation may be one part of the reasons.
In Australia, NAB released its Online Retail Sales Index for October and the data indicated online retail sales increased by 3.3pc in October month-on-month and 9.6pc year-on-year.
Growth was mainly led by personal and recreational goods (+6.3pc month-on-month), along with growth in fashion and grocery and liquor, which both increased by 4.8% month on month.
Growth in all other categories is in the positive territory except for Media online sales which contracted by 4pc.
- This article does not take into account the investment objectives, financial situation or particular needs of any particular person. Before acting on any advice contained in this article, you should assess whether it is appropriate in light of your own financial circumstances or contact your financial adviser. Christopher Hindmarsh is an adviser at JBWere Limited. JBWere Limited AFSL 341162.
