US data droops as their consumer mood turns negative; Korean mood brightens; Taiwan follows suit; UST 10yr at 4.00%; gold up and oil lower; AU$1 = 64.5 USc

Here's our summary of key economic events overnight that affect Australia, with news bond markets are ramping up their defensive posture, especially in the US, as American economic data fades further.

But first up today in the US, the ADP weekly employment report said a net -13,500 US jobs were lost last week, the largest weekly drop since ADP started releasing their weekly data. The pace of payroll shrinkage seems to be rising in the US.

American retail sales growth slowed to +4.3% in September from the + 5.0% rise in August. On a monthly basis, retail sales rose +0.2%, half the expected +0.4% increase and suggesting the weakness is concentrated recently. Observers will be watching the weak car sales component, especially.

Producer prices rose +2.7% in September from a year earlier, exactly as expected.

Pending home sales fell -0.4% in October from year-ago levels, the second consecutive monthly dip, and the eighth of 2025. However they did record a seasonal rise from September.

The latest factory survey from the Richmond Fed covering the mid-Atlantic states was quite negative.

And the Dallas Fed services survey was downbeat too, although the contraction there was at a slower pace than in October.

So it will be no surprise to learn that the Conference Board's consumer sentiment survey was also quite negative, falling sharply and mirroring the similar University of Michigan survey. Perceptions of inflation rose, to 4.8%.

And traditional Thanksgiving travel plans are being scaled back. They were expecting a rise this year, but the economic situation and uncertainties about disruptions are seeing an unexpected rise in cancellations, so a decline is now anticipated.

Across the Pacific in South Korea, consumer sentiment is rising. Their central bank's survey revealed a Composite Consumer Sentiment Index at the highest reading since November 2017. Their renewed confidence follows a major trade agreement with the US and stronger-than-expected economic growth.

In Taiwan, retail sales rose +1.9% in October from the same month a year ago, a bounce-back from the -1.6% dip in September. Meanwhile their industrial production expanded sharply again, up another +14.5% on that same year-on-year basis, although the pace of expansion seems to be slowing a bit even if it is strong.

The UST 10yr yield is now just on 4.00%, down -4 bps from this time yesterday as a defensive mood takes hold. The key 2-10 yield curve is now at +52 bps. Their 1-5 curve is now inverted by -4 bps and the 3 mth-10yr curve is now +5 bps positive. The China 10 year bond rate is little-changed at 1.82%. The Australian 10 year bond yield starts today at 4.43%, down -2 bps from yesterday at this time. 

Wall Street is firmer with the S&P500 up +0.7% in Tuesday trade. European markets were all up +0.9% overnight. Tokyo ended up just +0.1% yesterday. However Hong Kong rose +0.7% in Tuesday trade and Shanghai ended up +0.9%. Singapore slipped -0.2%. The ASX200 ended its Tuesday trade up just +0.1%.

The price of gold will start today at US$4138/oz, and up +US$42 from yesterday.

American oil prices have fallen -US$1 from yesterday to be just on US$57.50/bbl, with the international Brent price now just on US$62/bbl.

The Australian dollar is down -10 bps at just under 64.5 USc. Against the Japanese yen we are up +40 bps at just on ¥100.7. Against the euro we have dropped -20 bps to 55.8 euro cents.

The bitcoin price starts today at US$86,996 and down -0.3% from yesterday. Volatility over the past 24 hours has been modest at just on +/- 1.2%.

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