Australian Market

Australia’s S&P/ASX 200 benchmark index closed 0.45% lower as coal and utility stocks dropped on the possible impact of proposed government action to rein in soaring power prices. Utilities was the worst performing sector, tumbling 4.3%. The energy sector still gained on strength in oil stocks. The heavyweight financial sector inched 0.2% higher.

US Market 

U.S. stocks ended higher, as investors geared up for a pivotal week that will include consumer-price data and a Federal Reserve policy update. The S&P 500 gained 1.4%, and the Dow Jones Industrial Average added 1.6%. The Nasdaq Composite Index rose 1.3%. Hopes that the Federal Reserve was winning the fight against inflation helped indexes to rally for most of November, sending the broad S&P 500 to a three-month high.  

“We think we’ve seen peak Fed and peak inflation,” said Jason Ware, partner and chief investment officer for Albion Financial Group. “We still have tightening to come, but most of it is behind us. We are much closer to the end than the beginning.”

Commodities

Gold futures declined, posting their first loss in five sessions, as traders looked to a week that includes a report on inflation and multiple central-bank meetings where interest-rate hikes could diminish the yellow metals’ appeal to investors. February gold fell 1% to settle at $1,792.30 per ounce on Comex. That was the lowest most-active contract finish since Dec. 6, FactSet data show. Gold was hit by “profit-taking ahead of the major central bank events taking place this week, with traders continuing to pay respect to the key $1,800 resistance level,” said Fawad Razaqzada, market analyst at City Index and FOREX.com.

Oil Futures

Oil futures ended higher with the continued shutdown of the Keystone pipeline and an improvement in the outlook for Chinese energy demand — on the back of easing Covid-19 restrictions — raising concerns over tight crude supplies. West Texas Intermediate crude for January delivery rose 3% to settle at $73.17 a barrel on the New York Mercantile Exchange, posting the first gain in seven sessions. February Brent crude, the global benchmark, added 2.5% to $77.99 a barrel on ICE Futures Europe. The suspension of the Keystone Pipeline removes 600,000 daily barrels of oil supply in a market that “was already hanging with a razor-thin balance,” said Manish Raj, chief financial officer at Velandera Energy Partners.

Forex

Major currencies were mixed against the US dollar in European and US trade. The Euro rose from lows near US$1.0508 to highs near US$1.0577 and was near US$1.0535 at the US close. But the Aussie dollar fell from highs near US67.92 cents to lows near US67.27 cents and was near US67.50 cents at the US close. And the Japanese yen eased from near 136.62 yen per US dollar to JPY137.84 and was near JPY137.70 at the US close.

European Markets

European sharemarkets fell on Monday as investors braced for US, UK and European central bank interest rate decisions. Rising Covid-19 infections in China dampened sentiment, with mining stocks shedding 1.7%. The continent-wide FTSEurofirst 300 index fell by 0.5%. And the UK FTSE 100 index dipped 0.4% despite the UK economy, as measured by gross domestic product, expanding by 0.5% in October (survey: +0.4%).

Asian Markets

Earlier, in Asia, Japan’s Nikkei Stock Average ended 0.2% lower, dragged by falls in electronics and trading companies, as concerns persisted over the U.S. interest-rate outlook. Chinese shares sank, with sentiment hurt by worries about potential rate hikes after global central bank meetings. The property sector and related sectors, including furniture makers, weighed on the market. Among the gainers were pharmaceuticals and transportation. The Shanghai Composite Index fell 0.9%, the Shenzhen composite Index declined 0.7%, and the ChiNext Index was 0.8% lower.