US withdrawal from TPP dampens market appetite

Share Markets:

Risk appetites weakened as US President Trump formally withdrew from the Trans-Pacific Partnership trade deal.

Trump also talked of a "substantial border tax". Investor attention is turning to the protectionist policies of the new Trump administration and away from the fiscal stimulus. Moreover, there was little data for markets to focus on.

Share markets fell - the Dow slipped 0.2% while the S&P500 dropped 0.4%.

Interest Rates:

Yields on US treasuries fell, as the more risk averse environment supported demand for safe-haven bonds. US 10-year yields dropped 7 basis points to 2.40%.

Australian bond yields (based on futures) slipped - the 3-year fell 2 basis points to 2.02% while the 10-year dropped 3 basis points to 2.76%.

Foreign Exchange: 

The US dollar index weakened to its lowest in seven weeks on concerns over Trump's protectionist stance.

GBP ground higher to 1.25 against the USD on expectations the May government will lose an appeal against requiring parliamentary approval to trigger article 50, the formal step for Brexit.

The Australian dollar was mostly steady, trading within the range of US$0.755 and US$0.759.

Commodities:

Oil prices weakened on data showing a lift in US oil rigs from US drillers.

An increase in US oil supply would at least partly offset OPEC's commitment to cut production. Concerns over Trump's policies however, were supportive of gold prices.

The weaker US dollar also helped to prop up prices of commodities, including copper.

Australia:

No domestic data releases to report.

Japan:

The all industry activity index rose by 0.3% in November. This was just below consensus expectations for an increase of 0.4%. It followed a downwardly revised flat result in October, previously reported as a 0.2% increase.

United States:

No major data to report.



REVEALED: New tenant snaps up $3m Best and Less site

premium_icon REVEALED: New tenant snaps up $3m Best and Less site

Big plans underway only days after CBD store closure was announced

Suncorp's big plan start with CBD store closure

premium_icon Suncorp's big plan start with CBD store closure

Big bank's central store closure a pathway to bigger plans

Senate committee's cashless card decision is in

premium_icon Senate committee's cashless card decision is in

Report tabled tonight delivers committee recommendation on card

Local Partners