Key Data for the Week
Key economic data released this week:
The Australian sharemarket continued its run of gains, to add 0.2% yesterday, with most sectors closing higher. The Telecommunications sector led the gains. Telstra climbed 4.0%, after several broker upgrades, following the company’s reaffirmed 2020 profit goals
The Health Care sector also had strong gains. Cochlear added 1.2% and CSL gained 1.1%, to be up 10.5% for the month.
The Materials sector was led higher by mining heavyweights BHP and Rio Tinto, both up 0.4%, while South32 also rose 0.4%. Gold miners were mixed; Evolution Mining lost 3.4%, Saracen Mineral fell 1.0%, while St Barbara added 1.5%.
The big four banks weighed on the Financial sector; ANZ was the worst performer, down 0.8%, Westpac and Commonwealth Bank fell 0.4% and 0.1% respectively, while NAB closed flat.
Cleanaway Waste Management rose 1.5%, to extend its recovery this month. The stock is now up over 10% since the start of November.
The Australian futures market points to a 0.39% rise today.
European sharemarkets closed lower on Thursday. French construction companies Vinci and Eiffage fell 0.8% and 0.1% respectively, while UK company CRH plc slipped 1.3%. Sustainable energy companies Vestas Wind Systems and Siemens Gamesa Renewable Energy added 0.8% and 1.6% respectively.
By the close of trade, the broad based STOXX Europe 600 fell 0.1%, the UK FTSE 100 lowered 0.2% and the German DAX lost 0.3%.
US sharemarkets were closed for Thanksgiving Day. Concerns on a US-China trade deal were raised, after US President Trump signed into law a bill supporting protesters in Hong Kong, drawing a sharp rebuke from Beijing. The bill threatens sanctions on Chinese and Hong Kong officials deemed responsible for human rights abuses in Hong Kong. In response, Beijing said it would take "firm counter measures" in what it views as interference in an internal matter.
The emerging middle class of China and the obvious growth in their spending has been a major focus of our attention for some time, and will most likely remain that way for the foreseeable future.
November 11th saw the biggest day in retail trade ever with China’s Singles Day, where online shopping topped US$38.4 billion over a 24-hour period.
The growing wallets of Chinese consumers has resulted in a steady acceleration of their purchasing power over the past 10 years or so, and it would appear a safe bet to assume next year’s Singles Day will even surpass this year’s record.
The Chinese economy may be slowing, but currently retail sales are still growing at over 7% per annum.
It’s therefore reasonable to expect China’s retail spending could double over the next 10 years, assuming 7% annual growth rate is maintained.
The Chinese numbers are impressive, particularly when compared to US retail sales growth of 5% per annum.
Australia’s growth rate to the end of September was a mediocre 2.4%.
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