Dow Jones Climbs 0.8%
US stocks markets had a strong session overnight. The Dow Jones and S&P 500 both closed up 0.8% and the Nasdaq 100 performed even better with a 1.3% gain. The Tesla (TSLA) share price initially climbed 1.9% but gave back most of the gains as the company announces it is ready to introduce its first pure-electric truck that it hopes will revolutionise the trucking industry. Elon Musk has claimed in the past that Tesla’s electric truck would have more pulling power than a standard diesel. The new truck is expected to be rolled out in 2020.
Australia’s employment data came out yesterday showing just 3,700 new jobs created in October compared to expectations of 17,800. Offsetting the weak number, however, was an upward revision to the prior months gains by around 7,000. Despite the smaller than expected number, the unemployment rate dropped to a new cycle low of 5.4% and total hours worked increased. Overall the data caused little reaction in the Aussie dollar which quickly resumed its downtrend following the data. The Aussie now trades at US$0.759.
Oil prices have again held their ground with WTI still trading just above US$55 per barrel. Saudi Arabia has said that OPEC should agree to a further extension to the production cuts which are set to expire in March 2018. The problem is still that oil stockpiles are above the five-year average and the consensus is that at the current rate, they won’t be back below the average before March. The Saudi oil minister also commented that Russia was on-board with extending the production cuts. OPEC is set to meet on November 30 at which time the prospect of extending the cuts will be raised.
– Canada CPI 12:30am AEDT
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This article was written by William O’Loughlin – Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via email@example.com or by phoning +612 8302 3633.