Thanks for joining me. Gold prices have started the week by hitting a six-month high after a slump in the value of the dollar.
The safe-haven asset hit $2,017.82 an ounce as the value of the dollar continues to slide amid bets on money markets that the US Federal Reserve will not increase interest rates again.
5 things to start your day
1) Bank of England’s net zero focus ‘jeopardises’ inflation fight | A “democratic deficit” has emerged at the Bank, the Economic Affairs Committee has warned
2) The UK knows how to throw a party but investors won’t be fooled | Pomp and ceremony won’t distract from the sorry reality of Britain’s decline
3) Global firms pledge £30bn to UK economy ahead of Sunak summit | Microsoft and BioNTech provide boost for Prime Minister as global executives gather
4) How Israel is interfering with Hamas’s route to victory | Microsoft and BioNTech provide boost for Prime Minister as global executives gather
5) Supermarkets at risk of British beef and lamb shortages | Farmers begin reducing livestock numbers as post-Brexit overhaul starts to bite
What happened overnight
Asian markets dipped Monday as investors look ahead to the release this week of key US inflation data that could provide a guide for the Federal Reserve’s plans for interest rates going into the new year.
With Wall Street seeing little action at the back of last week owing to the Thanksgiving break, traders had few catalysts to drive action, though analysts were upbeat about the end of the year.
The retreat in equities comes after a recent run-up across world markets fuelled by bets the US central bank has finished lifting interest rates as inflation comes down and the jobs market comes off the boil.
The main focus this week is the release Thursday of the personal consumption expenditures (PCE) price index, the Fed’s preferred gauge of inflation.
In Asian trading, Tokyo stocks shed earlier gains and ended lower, with the benchmark Nikkei 225 index down 0.5pc, or 177.86 points, to 33,447.67, while the broader Topix index fell 0.4pc, or 9.18 points, to 2,381.76.
After a tepid half-day of business Friday in New York, Asia drifted lower.
Hong Kong’s Hang Seng dropped 1pc to 17,382.28, while the Shanghai Composite lost 0.8pc to 3,017.79.
Australia’s S&P/ASX 200 edged down 0.4pc to 7,009.50. South Korea’s Kospi shed 0.2pc to 2,491.20.
Still, observers were upbeat about the outlook, with the latest weakness blamed on traders taking a breather after a strong month.
Eyes are also on developments at Opec after the group and its allies delayed a meeting aimed at agreeing production quotas, with some African countries said to be baulking at Saudi Arabian calls for more cuts.
The group is thought to be close to reaching an agreement that could see the Saudis and Russia extend output reductions into the new year.
Crude prices have fallen in recent weeks as demand is seen coming down owing to slowing economies, particularly China’s, and the Middle East crisis appears to be contained.