Economic Calendar and News

On Tuesday, the Reserve Bank of Australia (RBA) will release the minutes from its November meeting, although we’re not holding out breath for more insights following the last comprehensive address.

However, attention will also be on RBA Governor Michele Bullock’s speech at the Australian Business Economists’ annual dinner. This event could provide insights into the central bank’s views on the inflation outlook.

In international news, the US Federal Reserve is slated to publish the minutes from its November Board meeting. This release, along with other key US economic data such as building permits, housing starts, durable goods orders, inflation expectations, and consumer sentiment readings, will be closely watched by investors.

OPEC+ is contemplating further reductions in oil supply, as revealed by three OPEC+ sources to Reuters, with a meeting scheduled for November 26 to decide. This consideration follows a nearly 20% decline in oil prices since late September, with Brent crude dropping to around $79 a barrel from a September high of nearly $98.

Factors influencing this drop include demand concerns and potential surplus in the coming year, despite existing OPEC+ cuts and Middle Eastern conflicts. OPEC+ members, including Saudi Arabia and Russia, have already committed to a total output reduction of 5.16 million barrels per day, approximately 5% of global daily demand, since late 2022. This includes 3.66 million bpd by OPEC+ and additional voluntary cuts by key members. With current measures potentially insufficient, the upcoming OPEC+ meeting on November 26 may explore the option of deeper cuts, building upon the supply curbs planned to extend into 2024.

Stocks on Watch

The upcoming week could see a positive shift in the oil sector. A rebound in oil prices is anticipated to benefit companies like Woodside Energy (ASX: WDS), Santos (ASX: STO), and Beach Energy (ASX: BPT), placing them in the spotlight.

In the US, tech enthusiasts will be eyeing Nvidia (NASDAQ: NVDA), as the leading chipmaker announces its quarterly results on Tuesday (NY time, after market close). The outcome could influence market sentiment globally.

A key corporate event in Australia this week centers around Origin Energy (ASX: ORG). Shareholders will vote on a proposed takeover by the Brookfield consortium, with AustralianSuper expressing opposition to the deal.

Lastly, Webjet (ASX: WEB), an online travel agency and B2B hotel intermediary, is set to release its 1H24 results on Wednesday. These results will provide a snapshot of the travel sector’s current state amid challenges posed by inflation and interest rate hikes.