Look ahead 7/11/23: RBA; UK retail sales; China and US trade balance; ABF; Uber

(Video Transcript)

Australia braces for RBA rate hike

Hello, I'm Angeline Ong, and welcome to your look ahead to Tuesday 7 November 2023. First up, we're looking at Australia because we are expecting an interest-rate decision from the Reserve Bank of Australia (RBA). It's expected to hike rates by 25 basis points to 4.35%.

Just checking in on the chart here for you, the Aussie. This is a one-day chart, as you can see there. And the Australian dollar taking a bit of a breather, it has to be said, after a steep climb as risk sentiment improved globally and markets brace for this possible hike in interest rates.

Resistance rather lies just above the 65.20 level, with the next major target at the 200-day moving average of 66.19 or thereabouts. Both the Aussie and the Kiwi rallied after that chilly US jobs report that led markets to pricing recuts, this is in the US, by the middle of next year.

High interest rates hit building sector

Now, we've also got a lot of action out of the UK, the BRC Retail Sales Monitor, one to look out for, along with the Halifax House Price Index. Now, higher borrowing costs have hit the house builders and the construction sector as well.

In terms of sterling, the Bank of England (BoE) has held interest rates at a 15-year high of 5.25%. Just having a look at cable here for you, because cable has found strength recently, but it has still, it has to be said, been driven by the US dollar.

In terms of data, the UK is still painting a gloomy picture of the economy. The pound has been building on its recent gains against the US dollar and the euro in the run-up to Christmas. A stronger pound would be a good thing for the BoE, as it makes high inflation less painful for those earning and using the pound.

China’s trade surplus expected to widen

In China, we're looking out for trade balance figures, trade surplus they're expected to widen to 82 billion as imports seem falling by 4.8% more than exports. And we are have numbers out of the US, trade balance figures and API crude oil inventories. Oil prices have fallen recently due to actions by Saudi Arabia and Russia as well.

And in the UK, in terms of earnings, Associated British Foods is out with four-year numbers and Persimmon out with a Q3 trading statement. Of course, the big one to look out for includes UBS out of Switzerland, Q3 earnings there.

And in the US, look out for Uber out with Q3 numbers. Uber is expected to publish earnings of $0.07 per share. Now, this would compare to an $0.18 loss in the same quarter last year, that's $0.18 loss.

Looking at the shares for you, Uber, an all-sessions stock on the IG platform. Revenue is expected at $9.5 billion on the Q3 reading. Over the past few weeks, analysts have grown increasingly bullish on the stock, some upping their price target to $60 or higher. Uber shares have posted their best weekly performance since May in the last week.

And that's it for now. For more market evening news, I'll be back on beat the street at 1.30pm London time to give you a heads-up to the US trading day. And Angela Barnes will be on at 7.30am on early morning call to do the same for the European market opening. Follow me on Twitter at Angeline Ong. This is IGTV.