US pre-close 30 Nov 18: Us markets recover early losses -G20 & trade in focus

n US economic data, personal income rose by 0.5% in October (forecast +0.4%) with spending up 0.6% (forecast +0.4%). The inflation measure - core personal consumption deflator - rose by just 0.1% in the month with the annual rate down from 1.9% to 1.8%. Pending home sales fell 2.6% in October (forecast +0.5%).

 

* European sharemarkets were generally firmer on Thursday. Shares in Deutsche Bank fell 3.4% over money laundering allegations. British banks rose modestly after all seven lenders passed Bank of England stress tests. Investors remain cautious ahead of the meeting of US and Chinese leaders over the weekend. The pan-European STOXX600 index was up 0.2%. The German Dax index was flat and the UK FTSE index rose by 0.5%. In London trade, shares of Rio Tinto rose by 1.5% and shares in BHP were up by 1.8%.

 

* US sharemarkets were little-changed on Thursday with investors largely content to take profits and square positions ahead of the planned US-China trade talks this weekend. With an hour of trade to go, the Dow Jones was higher by 80 points or 0.3% after being down 164 points in early trade. The S&P500 index was up by 0.3% and the Nasdaq index was up by 24 points or 0.3%.

 

 

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399, AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124, AFSL 234945 (the Bank).  The Bank and its subsidiaries have effected or may effect transactions for their own account in any investments or related investments referred to in this report. This report is not a recommendation to buy, sell or hold any securities or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual.  For this reason, any individual should, before acting on the information in this report, consider the appropriateness of the information, having regard to the individual's objectives, financial or taxation situation and needs and, if necessary, seek appropriate professional advice.  This report is produced by Commonwealth Research based on information available at the time of publishing.  We believe that the information in this correspondence is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness.  To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report.