Economics

In a week filled with notable developments and market fluctuations, the Australian Securities Exchange (ASX) and global financial markets experienced significant shifts driven by various overarching themes. Here's a comprehensive breakdown of the key events and their impact on different sectors and stocks during the period from Monday, December 4th, to Thursday, December 7th.

China's latest set of weak trade figures on Thursday has heightened concerns about the strength of economic activity and the potential for further slowdown in 2024. However, iron ore prices have reached their highest level in Singapore in over a year, nearing $US134 per tonne (or more than $A200 per tonne). New data reveals a surge in iron ore imports into China, heading towards a new annual high with one month remaining.

Global oil prices fell for a sixth straight session on Thursday, with the declines amounting to just a few cents. Some traders now believe that the selling pressure has subsided.

Increased government spending on energy and childcare rebates, investment, and defense spending kept the Australian economy afloat in the three months to September, even though economic growth slowed to less than walking pace, growing at just 0.2%.

Rio Tinto (ASX:RIO) has placed a $6.2 billion price tag on its share of developing the Simandou iron ore deposit in the African country of Guinea.

The chances of today's Australian third-quarter GDP coming in weaker than forecast rose on Tuesday, with the country seeing a near $8 billion plunge in its current account deficit, reaching a deficit of $158 million.

Global oil prices continued to decline on Tuesday, causing more concern for Russia. US crude prices reached their lowest levels since mid-year, hovering at around $72.57 a barrel at 7 am Wednesday, Sydney time, while Brent was trading at approximately $77.40.

The Reserve Bank of Australia has announced its decision to keep the cash rate unchanged at 4.35 per cent in its final policy meeting for the year.

Gold soared past $2,100 in Asian dealings on Monday, setting a new high for the third consecutive day.

On the opening day of the Munich Motor Show (IAA) in Munich, Germany, Ecopro BM Co. announced a groundbreaking deal with Samsung SDI Co. that could reshape the electric vehicle (EV) market.

Recent regulations issued by the US Department of Energy are set to have significant implications for Australia's lithium sector.

Worrying signs are emerging for Australian lithium miners and processors. Industry leader BYD has reported no growth in sales for battery-powered vehicles since October.

In a surprising announcement, New Zealand-based insurer Tower has declared a strategic review of its ownership structure.

Gold reached a record high on Friday as the dollar and Treasury yields fell following weak US economic data. Investors seemingly disregarded Fed Chair Jay Powell's warning of potential rate hikes if inflation strengthens once more.

Last week, OPEC+ convened but witnessed oil prices falling, despite claims of production cuts made during Thursday's meeting.

Another significant week awaits the Australian economy with the last Reserve Bank (RBA) board meeting of the year tomorrow and the release of September quarter national accounts and GDP figures on Wednesday.

There are several significant market drivers both locally and internationally this week. In addition to Australia's release of monthly and quarterly data, including an RBA meeting, investors must consider the US stock market surge, the health of the US economy, and its impact on interest rates and falling bond yields.

In Europe, the advance data on inflation showed a slide to an annual rate of 2.4% from 2.9% in October, while in the US, so-called PCE inflation is still falling to 3% in October, from 3.6% in September.

Global oil prices plummeted after the OPEC+ group failed to reach a consensus on production levels for some members.

One of Warren Buffett’s key energy plays is taking the famed investor deeper into fossil fuels, if US media reports are any guide.

Early Friday, Sydney time, Elon Musk's biggest punt in years is due to be rolled out: the final version of Tesla's Cybertruck. This vehicle could either further boost his reputation and that of his carmaker or blow it apart if it's a dud.

Despite stronger-than-forecast third-quarter growth, US investors are now more upbeat about the chances of a rate cut after a key briefing document for the Federal Reserve's December meeting showed a slowing in the pace of activity in parts of the economy and a further slipping in cost pressures.

New Zealand may have changed governments, but the country's Reserve Bank hasn't altered its monetary policy stance, keeping the official cash rate steady at 5.5% on Wednesday.