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Before making any investment decision, you should seek the relevant advice.
Market Opener – 08 Mar 2019
Local Markets Commentary
The Australian market commences Friday trade ahead of influential economic indicators out of China and Japan, following negative overnight international equities sentiment.
China is due to release February trade balance 2pm AEDT.
Post-ASX trade yesterday, China reported February foreign reserves at $US3.090 trillion, from $US3.088 trillion at the end of January.
CPI and producer prices are scheduled for release over the weekend.
Also regionally, today, Japan’s December quarter final GDP reading is expected 10.50am AEDT.
Locally today, the S&P/ASX quarterly indices re balance release will likely produce reactive trade. Please see pp2-3.
SHL and YAL are among stocks trading ex-dividend. Please see pp3-4 for a comprehensive list.
In overnight commodities trade, WTI and Brent crude each settled higher.
US gold futures (April) closed slightly lower.
LME copper continued lower. Nickel dropped.
Iron ore (China port, 62% Fe) rose.
The $A fell below US70.20c after trading at ~US70.40c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets traded lower overnight, broad sentiment seemingly influenced by economic growth commentary from both sides of the Atlantic.
European Central Bank (ECB) president Mario Draghi announced the bank would again offer cheaper long-term loans to commercial financial institutions. Following the ECB’s policy meeting, Mr Draghi described the euro zone economic slowdown as a ‘sizeable moderation’ and said ECB economists had lowered predicted 2019 euro zone GDP growth from 1.7% to 1.1%, and CPI appreciation from 1.6% to 1.2%.
In addition, the outlook for no rate change at least until the end of the northern summer had been pushed back until at least year’s end.
Earlier, the euro zone’s final December quarter GDP growth reading had been confirmed at 0.2%, following 0.1% for the September quarter.
Annual GDP growth fell from 1.6% to 1.1%.
The ECB comments and euro zone data subsequently pushed the euro 0.6% lower against the $US.
Meanwhile, a US Federal Reserve regional governor publicly stated the domestic economic outlook had ‘weakened’.
On the flip side, amid US-China trade negotiation talk, traders reported China had purchased an additional 500,000t of US soybeans yesterday.
In US data releases, weekly new unemployment claims fell by 3000 to 223,000.
A February job cuts report estimated 76,800 planned layoffs against 53,000 in January.
January consumer credit rose to $US 17.05B from $US 15.36B.
Tonight in the US, February employment figures, including wages and jobs created, are due. January building permits and housing starts are also anticipated.
Federal Reserve chairman Jerome Powell is scheduled to speak on ‘normalising monetary policy’ at an economic policy research summit during the evening (post-US trade).
Companies scheduled to report earnings include: Barclays (full year), T-Mobile and Vail Resorts.
In overnight corporate news, Société Générale placed a sell on Rio Tinto, which was also trading ex-dividend on the FTSE 100.
Grocer Kroger dropped 9% after quarterly results and outlook undershot expectations.
Costco Wholesale reported post-US trade.
The Australian market commences Friday trade ahead of influential economic indicators out of China and Japan, following negative overnight international equities sentiment.
China is due to release February trade balance 2pm AEDT.
Post-ASX trade yesterday, China reported February foreign reserves at $US3.090 trillion, from $US3.088 trillion at the end of January.
CPI and producer prices are scheduled for release over the weekend.
Also regionally, today, Japan’s December quarter final GDP reading is expected 10.50am AEDT.
Locally today, the S&P/ASX quarterly indices re balance release will likely produce reactive trade. Please see pp2-3.
SHL and YAL are among stocks trading ex-dividend. Please see pp3-4 for a comprehensive list.
In overnight commodities trade, WTI and Brent crude each settled higher.
US gold futures (April) closed slightly lower.
LME copper continued lower. Nickel dropped.
Iron ore (China port, 62% Fe) rose.
The $A fell below US70.20c after trading at ~US70.40c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets traded lower overnight, broad sentiment seemingly influenced by economic growth commentary from both sides of the Atlantic.
European Central Bank (ECB) president Mario Draghi announced the bank would again offer cheaper long-term loans to commercial financial institutions. Following the ECB’s policy meeting, Mr Draghi described the euro zone economic slowdown as a ‘sizeable moderation’ and said ECB economists had lowered predicted 2019 euro zone GDP growth from 1.7% to 1.1%, and CPI appreciation from 1.6% to 1.2%.
In addition, the outlook for no rate change at least until the end of the northern summer had been pushed back until at least year’s end.
Earlier, the euro zone’s final December quarter GDP growth reading had been confirmed at 0.2%, following 0.1% for the September quarter.
Annual GDP growth fell from 1.6% to 1.1%.
The ECB comments and euro zone data subsequently pushed the euro 0.6% lower against the $US.
Meanwhile, a US Federal Reserve regional governor publicly stated the domestic economic outlook had ‘weakened’.
On the flip side, amid US-China trade negotiation talk, traders reported China had purchased an additional 500,000t of US soybeans yesterday.
In US data releases, weekly new unemployment claims fell by 3000 to 223,000.
A February job cuts report estimated 76,800 planned layoffs against 53,000 in January.
January consumer credit rose to $US 17.05B from $US 15.36B.
Tonight in the US, February employment figures, including wages and jobs created, are due. January building permits and housing starts are also anticipated.
Federal Reserve chairman Jerome Powell is scheduled to speak on ‘normalising monetary policy’ at an economic policy research summit during the evening (post-US trade).
Companies scheduled to report earnings include: Barclays (full year), T-Mobile and Vail Resorts.
In overnight corporate news, Société Générale placed a sell on Rio Tinto, which was also trading ex-dividend on the FTSE 100.
Grocer Kroger dropped 9% after quarterly results and outlook undershot expectations.
Costco Wholesale reported post-US trade.