Market Report with Paul Wareing - December 1, 2016

Written on the 29 November 2016

There seems to have been a waning of interest in trading the Trump effect in the US as three weeks have now passed since that momentous day.

The US Dollar edged higher and the stock market attained record highs.  A faint hope that OPEC come to an agreement to restrict production and boost the oil price seemed to fade over the weekend as the Saudis said they would not be consulting non-OPEC countries prior to the meeting.

Outside of the OPEC meeting the main focus will be on non-farm payroll data out on Friday with a figure of 175,00 expected. A number around this level should cement the case for a rate rise in December.

Aussie markets were strong again last week despite a poor construction report. Iron ore maintained its march higher ad even real estate property trusts recovered despite higher bond yields.

Numbers wise there's the capital spending report which should highlight a weakness in mining investment and there are retail sales on Friday. With concerns over a weak GDP and possible rate rise in the US I imagine we shall see some AUD weakness.

So, a fair amount of data out this week and after the recent rally I would expect markets to pause for breath and see how the numbers pan out.

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