Morning Wrap: ASX 200 to inch higher, China promises "more proactive" stimulus, RBA to hold rates... again

ASX 200 futures trading up 6 points, or (+0.07%), to 8,203, as of 8:30AM

While profit-taking was the mood on Wall Street last night, especially ahead of Wednesday's inflation data, there was one batch of ETFs that was rallying significantly - leveraged China ETPs. China’s Politburo said overnight that it will embrace a “moderately loose” strategy for monetary policy and has vowed to implement “more proactive” fiscal policy. If this follows through, it will be the first meaningful monetary policy change to come out of that country since 2011. Watch the ASX-listed miners and China-linked ETPs today. And while I would highlight that the RBA's December interest rate decision is at 2:30pm this afternoon, we all know they're not going to cut interest rates.

Let's dive in.

S&P 500 SESSION CHART

One way traffic for US equity markets last night. (Source: TradingView)

OVERNIGHT MARKETS

• US equities were lower in Monday trading as stocks ended just off worst levels. Today's weakness followed mixed performance last week, though S&P and Nasdaq boosted by big tech strength.

• Treasuries weaker with a touch of curve steepening. US 10-Year yield at 4.2%.

• US Dollar index up 0.1%, yen notably weaker. Bitcoin futures down 5.3%.

• Gold finished up 1%. WTI crude ended up 1.7%.

MARKETS

• US companies announce $35B in transactions on Monday as dealmaking confidence rises after election (FT)

• Household finance outlook hits highest since February 2020 following Trump win, New York Fed survey shows (KNBC)

STOCKS

• TikTok is seeking to pause US ban and bring case to US Supreme Court (Bloomberg)

• Mondelez (the makers of Cadbury chocolate and Oreo biscuits) are reportedly exploring the acquisition of The Hershey Company (CNN)

• Boeing announced it will lay off about 400 employees in Washington state (Reuters)

• Suspect Luigi Mnagione being held by police in Pennsylvania as part of investigation into UnitedHealthcare CEO murder (Yahoo)

AUSTRALIAN STOCKS

• Downer EDI announces partnership with Macquarie Asset Management to launch Diamond Infrastructure Solutions; DOW to receive initial cash proceeds of $2.4 billion (StreetAccount)

• Dexus-run property fund to appeal court ruling forcing sale of A$830M stake in Sydney's Macquarie Centre (AFR)

• Delays in restarting buyback spur speculation around M&A at James Hardie Industries (The Australian)

• Soul Patts sells shares in Tuas through Jarden (The Australian)

GEOPOLITICS

• Assad's fall in Syria deprives Iran and Russia of a regional ally, but may cause Islamist resurgence (Reuters)

• IMF and El Salvador come to agreement on loan program in return for changes to bitcoin use, deficit reduction (FT)

ECONOMY

• Citigroup joins rest of big banks with forecast of 25bp rate cut at December's FOMC meeting (Reuters)

• Average US gasoline prices fall below $3 a gallon for the first time in over three years (Reuters)

• US wholesale inventories for October rise m/m, in line with expectations (Reuters)

• Main US housing survey shows consumer confidence around housing again rising in November (Yahoo)

BROKER MOVES

• Gold Road Resources upgraded to sector perform from underperform at RBC Capital Markets, price target of $2.30 (implying 10% upside)

• Pantoro initiated buy at Moelis Australia, price target of $0.14 (implying 56% upside)

• Telstra Group upgraded to buy from hold at Jefferies, price target of $4.50 (implying 12% upside)

Stocks trading ex-dividend: 

• Tue 10 Dec: Premier Investments (PMV) - 1.98%

• Wed 11 Dec: WCM Global Growth Limited (WCG) - 1.09%

• Fri 13 Dec: Metcash (MTS) - 2.54%

Economic calendar (AEDT):

• 2:30pm: RBA Interest Rate Decision and Press Conference (Dec)

• OPEC+ Meetings continue today