Aussie dollar clawing back ground

Share Markets:

Markets were mostly softer overnight. US markets saw some profit taking following a solid run over the past week. 

The Dow was down 0.2% and the S&P500 fell 0.1%. In Europe, the FTSE was down 0.5%, the German Dax fell 0.2% and the French CAC40 was down 0.4%.

Interest Rates:

There was little movement in interest rates overnight. US 10 year government bond yields fell 1 basis point to 2.25% and 2 year yields were steady at 0.92%.

In Australia, 10 and 3 year government yields edged 3 basis points higher the 10 year yield settling at 2.94% and 3 years at 2.17%.

Foreign Exchange:

After a weak morning and early afternoon yesterday the AUD managed to claw back some ground overnight.

The AUD, however, will open a little lower against the majors than it did yesterday.

The US dollar index traded mostly sideways overnight but did receive a boost on comments made by San Francisco Fed President John Williams, that there was a strong case for a rate increase in December if the data holds up.

The index touched 100 before moving back down.

Commodities:

Copper slid to the lowest since 2009 amid excess supply concerns while oil fluctuated after Saudi Arabia said it was ready to work with other producers to stabilize global markets.

Oil ended the night 1% lower. Gold was marginally weaker and iron ore held steady at $US46 per tonne.

Australia:

No major data released yesterday. Figures on private business capital expenditure will be released on Thursday.

China:

No major data released in China yesterday or overnight. 

Europe:

Both the Markit Eurozone services and manufacturing PMIs rose in the preliminary November numbers.

The manufacturing PMI rose from 52.3 to 52.8 while the services PMI rose from 54.1 to 54.6.

The European economy appears to be expanding with the PMI readings at their highest in over three years.

New Zealand:

New Zealand had a record annual net gain (more arrivals than departures) of migrants in the year to October 2015. (62,500).

It resulted from a record 120,100 migrant arrivals and 57,600 migrant departures.

The annual net gain in migrants has been setting new records for the last 15 months. In October, net migration passed another milestone with the first annual gain in migrants from Australia in over 20 years.

Fewer New Zealand citizens departing for Australia and increased arrivals of both New Zealand and non-New Zealand citizens drove the change.

United States:

The Markit US manufacturing PMI slipped from 54.1 in October to 52.6 in the provisional November reading. Existing home sales fell 3.4% in October following a 4.7% rise in September



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