Traders’ Diary: Everything you need to get ready for the week ahead
The US headline inflation for October came in at 7.7% YoY versus forecast of 8%. It was down from 8.2% in September and noticeably better than the peak reading in June of 9.1%.
The index for all items less food and energy rose 0.3% in October, after rising 0.6% in September.
The energy index however increased 1.8% in October after falling for the preceding three months.
In general, US inflation has been very slow to come down, but this report gives up hope that deceleration of pricing pressures might bring back hopes of a soft landing from the Fed.
Futures traders are now pricing in a rate of 4.90% by May 2023, compared to 5.05% before the report came out.
The weak inflation report has also pushed the USD lower against major currencies.
— Bloomberg Markets (@markets) November 10, 2022
The next FOMC meeting is pencilled in for December 13th to 14th.
China’s producer price index (PPI) fell by 1.3% in October from a year ago, the first decline since December 2020.
The data is dragged down by drops in iron and steel prices, according to the official statement.
The PPI index tracks the price of raw materials and other input costs, and had missed expectations of 1.5%.
And while inflation has surged in the US and Europe, China’s CPI remained subdued at just 2.1% YoY as per data released last week, which was below forecasts of 2.4%.
Economists believe that this is due to lacklustre domestic demand as the country’s strict Covid controls have dragged down China’s GDP to just 3% pace in Q3.
Meanwhile, consumer confidence in Australia has dropped 1.5% last week, according to an ANZ-Roy Morgan survey.
It was the sixth consecutive weekly decline in confidence, taking the index to levels not seen since the height of the pandemic of April 2020.
Only 21% of Australians (down 2ppts) say their families are ‘better off’ financially than this time last year, compared to 47% (up 1ppt) that say their families are ‘worse off’ financially.
“The continued decline in confidence seems to finally be having some impact on spending. ANZ data for October indicates the usual run-up in spending seen late in the month is not occurring,” said ANZ Head of Australian Economics, David Plank.
🇦🇺 Australia consumer confidence 78.
*Lowest since August 2020.
*Outside of pandemic, lowest since February 1991.
— Alex Joosten (@joosteninvestor) November 9, 2022
“Falling confidence and rising inflation expectations creates a difficult mix for the RBA,” said Plank.
The next RBA board meeting is slated for December 6th.
Monday November 14th – Friday November 18th
All sources from Commsec and Investingdotcom
Weekly consumer confidence index
Minutes of the November RBA board meeting
Overseas arrivals and departures for September
Westpac leading index for October
Wage price index for the September quarter
Labour force including unemployment rate for October
State accounts for 2021/2022
US CPI expectations for October
ECB’s board members speak
EU industrial production for September
China production, retail sales and investments for October
US Empire State manufacturing index for November
US producer prices for October
EU unemployment rate for for the quarter
EU GDP for the quarter
EU trade balance for the quarter
China new home prices for October
US industrial production for October
US retail sales for October
US import/export prices for October
US NAHB housing market index for November
ECB president Christine Lagarde speaks
US housing starts and permits for October
EU CPI report for October
US exisiting homes sales for October
US Conference Board leading index for October
ECB president Christine Lagarde speaks
Source: The ASX. Could change without notice.
Tiger Tasman Minerals (ASX:T1G)
Listing: 14 November
IPO: $8m at $0.20
Tiger Tasman Minerals has projects in WA and QLD focused on copper, lithium, nickel, manganese, silver, gold, base metals and industrial minerals (DMM) essential to the global clean energy transition, decarbonisation and a more sustainable future.
The projects are in proven and prospective jurisdictions including Paterson Province, Fraser Range, Earaheedy Basin, Ashburton and the Townsville region.
The Iron Skarn silver-copper-lead-zinc project (QLD), the Copper Canyon copper-gold project (WA), the Fraser Range lithium-nickel-copper project (WA), the Mt Minnie manganese project (WA) and the Crater copper-zinc-lead-silver-gold project (WA).
Toubani Resources (ASX:TRE)
Listing: 16 November
IPO: $32.5m at $0.20
This resources player is focused on developing a gold platform in West Africa.
The company is primarily focused on the development of the Kobada Gold Project in Southern Mali, which has a global resource base of over 2.3 Moz of gold and the potential to produce more than 100,000 ounces of gold per annum.
Source Certain International (ASX:SC1)
Listing: 16 November
IPO: $7m at $0.20
SC1 provides a scientific provenance verification service for agriculture, seafood, mining and resource sectors.
SC1 says scientific analysis of physical product samples allows clients to mitigate risk, validate digital data, protect their brand and support transparency within their supply chains.
The company’s origin verification solution is able to identify the mine, farm, fishery or plantation
Nightingale Intelligent Systems (ASX:NGL)
Listing: 18 November
IPO: $6m at $0.22
This company develops and sells Unmanned Aerial Vehicles (UAVs) or drones for commercial applications – and there’s a bunch of them.
NGL says its tech has applications across solar farms, ports, O&G facilities, critical infrastructure like dams and power stations, in construction, border patrol, securing pipelines, fire and oil spills along with search and rescue, crowd control and for prisons.
Basically, the drones can respond to a threat; when a security alarm is triggered the system automatically dispatches a drone to the alarm location and streams live video to the security team