WHAT HAPPENED OVERNIGHT IN THE US:
· S&P +0.1%, started lower on global risk-off, and would’ve stayed there without energy.
· Exxon & Chevron contributed all of Dow’s 20pts gain with oil back above $46 on Turkey-Russia incident.
· Skittish crowd trimmed positions with Brent speculative shorts highest in a year (WTI shorts up 60% in less than 2 months).
· But huge global glut remains – and consensus remains no significant change at OPEC next week. DoE later today expected to show an 8th straight crude build.
WHAT’S UP THIS MORNING IN THE EAST:
· Asia mostly lower, also risk-off. Bright spots energy; but miners still in doldrums.
· China in modest positive territory, but Japan/Korea/Taiwan all lower. Hong Kong -0.1%, off lows, but flat as good as it gets. Tencent unchanged.
· Australia -0.6%, would be worse without energy. BHP -0.2% indicates flat London open. Rio -0.6%, acknowledging weak iron ore. Dalian futures indicate little relief for spot today.
SOUTH AFRICAN NEWS:
· Expect AllShare unchanged. From SA close yesterday, gold +$4 ($1078), plat unchanged ($847), copper unchanged ($2.05/lb), oil unchanged ($46.20), USDZAR unchanged (14.02), S&P +0.5%.
TODAYS KEY DATA POINTS:
· 3.30pm: US Oct Pers Income/Spend, Durable Goods, initial jobless
· 4.45pm: US Nov PMI Services (55.1)
· 5pm: US Oct New Home Sales
· 5.30pm: DoE inventories