Mixed lead for short Christmas eve trading
The US economy keeps on growing.
The shortened Christmas eve trading session has a mixed lead for New Zealand and Australia as stocks rallied on Wall Street and precious metal prices continue to press higher, although futures are pointing to a soggy start for the ASX when markets open in the South Pacific.
Tech majors including Nvidia, Amazon and Alphabet were on the green side of the ledger helping propel the Nasdaq Composite higher, after delayed data showed the US economy grew at its fastest annual pace in two years and ahead of expectations.
Mining companies Barrick and Newmont continued their advance as precious metals continued their strong run into the end of the year.
And Novo Nordisk rallied after the weight-loss drugmaker’s Wegovy pill got approval for use by the US Food and Drug Administration.
Merry Christmas
Stocks on both sides of the Atlantic were broadly stronger heading into the Christmas period, with the S&P 500 up 0.3% in late trading and megacap tech companies helping drive the Nasdaq’s 0.3% gain. Nvidia, Alphabet, Amazon and Apple were among the gainers, while Tesla dipped after reporting soft European car sales in November.
The UK’s FTSE 100 and Germany’s DAX 30 both gained 0.2% while France’s CAC 40 slipped 0.2%.
France is pushing the European Union to respond to China’s decision to impose duties on dairy products from the continent.
Denmark’s Novo Nordisk surged 9.2% on its home bourse after the US FDA approved its Wegovy pill for weight management. Eli Lilly & Co was also on the green side of the ledger in New York.
Mining companies including Barrick and Newmont extended their gains, following precious metal prices higher as copper hit a new record. Gold futures rose 0.6% to US$4,497 an ounce at 7am in Auckland.
Land Downunder
Still, the resources-heavy Australian market is poised for a soft start to the shortened trading session, with futures pointing to a 0.2% decline for the S&P/ASX 200 index, which would snap a four-day rally.
New Zealand’s S&P/NZX 50 has gained for the past three sessions and is on track for a positive December, having gained 3.1% so far this year.
The kiwi dollar traded at 58.30 US cents at 7am in Auckland from 58.14 cents yesterday after Bureau of Economic Analysis figures showed the US economy grew at a 4.3% annual pace in the September quarter, the fastest clip in two years and beating the 3.2% predicted by economists.
The local currency climbed to 91.10 yen from 90.77 yen yesterday after Japan’s prime minister Sanae Takaichi told Nikkei that her nation’s debt level remains too high and won’t pursue irresponsible bond issuance or tax cuts while she navigates supporting the economy with dwindling investor confidence in the yen.
The Australian and New Zealand trading sessions will close early for the Christmas holiday, with both markets closed on Christmas and Boxing Day, returning for another short week ahead over the New Year period. Wall Street is closed for Christmas day, with regular trading on Boxing Day.
