Morning Wrap: ASX 200 to rise, US markets closed for Thanksgiving + Charts of the Week

US markets were closed for Thanksgiving, European markets hit a fresh two-month high, a slim majority of market watchers now expect new highs for global equities in the coming months, China is ramping up pressure on banks to plug an estimated $446 billion shortfall in funding needed to stabilise its property sector and Friday's Charts of the Week!

Let's dive in.

MARKETS

US markets closed for Thanksgiving – All US-related data above is from Wednesday

• Pan-European STOXX 600 up 0.27% to a fresh two-month high

• Energy was the best performing sector, up 1.3% bouncing from previous sharp losses

• European bonds fell after Germany suspended debt limits for a fourth consecutive year, adding to concerns over more borrowing as the Eurozone economy slows (Bloomberg)

• Slim majority of market watchers expect new highs for global equities (Reuters)

• Low-cost and active ETFs attracted US$39bn in October while costly passive ETFs suffered a net US$bn in outflows (FT)

• OPEC+ meeting delayed amid dispute over output quotas (Bloomberg)

• Iron ore rally continues as China policy support spur hopes of property recovery (AFR)

CENTRAL BANKS

• ECB's Nagel says peak rate is close but cannot exclude another move (Bloomberg)

• Increasing attention on BOJ operations after trimmed JGB purchases (Nikkei)

• Sweden's central bank keeps rates and QT unchanged (Bloomberg)

• South African central bank opts for another hawkish hold (Reuters)

GEOPOLITICS

• Four-day Israel-Hamas ceasefire has been delayed until Friday (Bloomberg)

• Dutch right wing populist Geert Wilders wins parliamentary elections (Bloomberg)

• US and Chinese working to increase flights between two countries (Bloomberg)

• Inter-Korean tensions ratchet higher after Pyongyang scraps military accord (FT)

CHINA

• China steps up efforts to revive property sector with measures aimed at plugging industry funding shortfalls (Bloomberg)

• China seen to hold MLF rate steady for rest of 2023 (Bloomberg)

• Country Garden leads rally in China property following support headlines (Bloomberg)

• One of China's largest shadow banks warns it's "severely insolvent" (Bloomberg)

ECONOMY

• US short-term inflation expectations climb to 7-month high in November (Bloomberg)

• US mortgage rates fall to lowest level since September at 7.29% (Bloomberg)

• Eurozone PMI shows stabilisation in November (Bloomberg)

• UK services sector supports economy in November (Bloomberg)

• French business confidence weakens further in November (Reuters)

• Germany PMIs fall more slowly than previous month (Reuters)

Charts of the Week

This segment of the morning wrap brings you weekly technical commentary on the ASX 200 and some of the more interesting charts in the market. These are not meant as recommendations. They are for illustrative purposes only. Any discussion of past performance is for educational purposes only. Past performance is not a reliable indicator of future return. Always do your own research.

ASX 200 – Santa Claus is coming to town?

ASX 200 daily chart (Source: Commsec)

Not a lot too see here with the index little change over the past week – and past year for that matter. The only question worth asking is whether or not we will see a Santa Claus rally this year? Let’s hope so.

Bellevue Gold (BGL) – Another chance

Bellevue daily chart (Source: Commsec)

I have covered Bellevue before (probably last time it threatened to break higher) but it is shaping up once again. $1.70 is the magic number that it needs to punch through. If the bulls can overcome that hurdle, they will be sailing in clean air and a move to $2 is possible.

Goodman Group (GMG) – Can’t keep a Goodman down

Goodman Group daily chart (Source: Commsec)

All REITs are dead. Isn’t that the narrative at the moment? Well, Goodman didn’t get the memo, it seems. The share price recently bounced almost perfectly off the $20 level (yay for round numbers) and recently punched to a 52-week high. The stock is experiencing a slight pullback right now, will the bulls potentially setting themselves for another run higher. Just goes to show that if you buy best in class (which I humbly submit Goodman is), good things will happen. 

ASX corporate actions occurring today:

• Trading ex-div: Ci Resources (CII) – $0.05

• Dividends paid: Wotso Property (WOT) – $0.03 

• Listing: None

Economic calendar (AEDT):

• 10:30 am: Japan Inflation Rate

• 8:00 pm: Germany IFO Business Climate