US data lackluster; Canada posts surprise trade surplus; Japan business sentiment rises; Australian labour market weaker; UST 10yr at 4.12%; gold jumps, silver at another new record; oil falls; AU$1 = 66.7 USc

Here's our summary of key economic events overnight that affect Australia, with news the world's economy is handling the US tariff-tax buffeting quite well.

Financial market reactions to the US Fed rate cut yesterday, and the nature of its split decision, has seen the USD fall, bonds shift to a risk averse tone, and Wall Street retreat, although it has recovered to break-even in the past hour. The oil price has fallen as demand estimates in the US fade.

Today, in a very big shift, there were 313,100 actual initial jobless claims last week in the US which is the largest weekly rise since early in 2020. There are now 1.965 mln people on these benefits, +2% more than at this time last year.

We should also note that the US home ownership rate in Q3-2025 was 65.3%. A year ago it was 65.6%. Their rental vacancy rate is now 7.1%, up from 6.9% a year ago.

US wholesale inventories are rising according to late-released September data, now up +4.8% from a year ago. But their inventory-to-sales ratio isn't anywhere near concerning levels yet.

US exports rose marginally in September, largely driven by the export of gold which accounted for 70% of the monthly rise. Computer exports fell, and travel receipts by visitors also retreated notably. Meanwhile imports into the US were little-changed. The shift of gold out enabled them to record their lowest trade deficit since 2020.

In Canada however, their export growth was much stronger, and also featuring gold. Their exports jumped +6.3%, while imports were down -4.1%. That turned a trade deficit of -C$6.4 bln in August to a small trade surplus of +C$153 mln surplus in September and ending the 2025 negative monthly outcomes. Canada's exports of aircraft, and energy products (oil and electricity) rose significantly in September.

Across the Pacific, Japan’s Business Survey Index for large manufacturers rose to +4.7% in Q4-2025, up from 3.8% in the prior quarter and the strongest reading this year. This was better than expected, underscoring continued resilience despite trade frictions, growth concerns and their mounting fiscal risks.

China has signaled that 2026 economic support from Beijing will be more modest than many had thought it would be.

Switzerland reviewed its interest rate overnight and left it at 0%. They have inflation at +0.2%.

We can also note the Central Bank of Turkey cut its policy rate by -150 bps to 38% overnight, a fourth consecutive reduction, and by more than markets expected. They claim inflation is starting to ease, especially food inflation. Overall inflation is still running over 30% pa, although that is half the rate of a year ago.

Here in Australia, their November labour market report showed employment fell -21,300 (s.a.) from October, an unexpected result, but remained +182,400 higher than a year ago. Full-time employment fell -56,500 but part-time employment rose +35,200. Their jobless rate was stable at 4.3%. Underemployment rose to 6.2%.

Container freight rates rose +2% last week from the prior week, largely on the back of rising rates from China to the EU. Rates from China to the US are falling as trade volumes ease. These container rates are now -45% lower than year-ago levels. Meanwhile bulk cargo rates are +111% higher than year-ago levels, after last week's -14.8% fall off the recent peak.

The UST 10yr yield is now at 4.12%, down -4 bps from this time yesterday. The key 2-10 yield curve is now at +61 bps. Their 1-5 curve is still positive by +15 bps and the 3 mth-10yr curve is positive by +43 bps. The China 10 year bond rate is down -1 bp at 1.84%. The Japanese 10 year bond yield is down -3 bps at 1.93%. The Australian 10 year bond yield starts today at 4.70%, down -8 bps from yesterday.

Wall Street has started its Thursday with the S&P500 down -0.7%, although dip-buyers have erased that now. Overnight, European markets were positive between London's +0.5% rise and Paris's +0.8% rise. Yesterday, Tokyo ended its Thursday trade down -0.9%. Hong Kong was unchanged but Shanghai fell -0.7%. Singapore was up +0.2%. The ASX200 ended its Thursday with a +0.1% blip up. 

The price of gold will start today at US$4273/oz, and up +US$70 from yesterday and back near its peak. And we should note again that silver has set a new record high, just under US$64/oz with another big move.

American oil prices are down almost -US$1 at just over US$57/bbl, while the international Brent price is just under US$61/bbl.

The Australian dollar is +10 bps firmer from yesterday, now at just on 66.7 USc. Against the Japanese yen we are down -30 bps at ¥103.5. Against the euro we are down -10 bps at 56.8 euro cents. That all means our TWI-5 starts today at just under 62.3, and up +30 bps from yesterday.

The bitcoin price starts today at US$89,977 and down another -2.5% from this time yesterday. Volatility over the past 24 hours has been moderate, at just over +/- 2.5%.