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Before making any investment decision, you should seek the relevant advice.
Market Opener – 25 Sep 2018
Local Markets Commentary
The Australian market commences today’s trade on largely negative overnight international equities trade leads as US domestic and international political issues continue to stew.
In overnight commodities trade, oil picked up the pace of Friday’s gains.
US (December) gold futures turned higher.
Iron ore (62% Fe, China port) remained steady during a public holiday in China.
LME copper settled a little lower. Nickel and aluminium swung to decisive falls.
The $A fell to ~US72.50c after trading at ~US72.75c early yesterday evening, but has fallen this morning.
Locally today, a weekly consumer sentiment report is due pre-trade.
In addition, Australia’s national government is expected to reveal finalised 2017-2018 national budget figures.
Regionally, the Bank of Japan (BoJ) publishes the minutes from its September policy meeting 9.50am AEST. BoJ governor Haruhiko Kuroda is scheduled to speak publicly ~3.30pm.
Overseas Market Commentary
Major European and US equities markets fell on opening overnight, but the NASDAQ soon headed higher, ultimately proving a notable overnight exception.
New China-US import taxes for each other’s goods came into effect yesterday and overnight.
Earlier yesterday, un-named sources were cited as claiming China had scrapped plans for trade talks in Washington, arranged for this week following a reported invitation weeks earlier from the US treasury secretary. The US president’s threats of additional tariffs were also cited as a reason.
Meanwhile in the US, reports emerged the deputy Attorney General was prepared to resign, and/or had actually resigned, further escalating domestic political tensions.
The deputy Attorney General has been responsible for governing the ongoing special counsel investigation into any Russian influence on the US 2016 presidential election.
Elsewhere, European Central Bank (ECB) president Mario Draghi appeared positive regarding the euro zone economy, in particular underlying inflation growth, when meeting with a European Parliament committee.
Mr Draghi’s comments helped push the euro higher to trade at thee-month peaks against the $US.
Mr Draghi also appeared keen to quell fears of any major impact from the UK’s planned departure from the European Union, except in the case of central derivatives clearances should the separation occur without any agreement on regulations governing financial transactions.
In US data releases, the Chicago Fed August national activity was reported flat, at 0.18, following an upward revision of the July reading from 0.13.
A Texas region manufacturing index fell to 28.1 from 30.9, markedly undershooting forecasts of 31.0.
Earlier, IFO released the results of its monthly business survey for Germany, indicating just slightly lower sentiment over the month for the current climate, conditions and expectations components.
Tonight in the US, two house price indices, a consumer sentiment report and regional manufacturing index are due.
In addition, the Federal Reserve commences a two-day policy meeting. Outcomes will be announced early Thursday morning (AEST).
The United Nations General Assembly will also attract further attention, with the US president scheduled to speak.
UK retailer Next, Nike and Manchester United are scheduled to lodge results. Trading updates are anticipated from travel specialists Carnival and Thomas Cook.
M&A activity featured in overnight corporate news, Barrick Gold and Randgold Resources announcing a merger under which Barrick shareholders will hold 64% of the new ~$US18B entity. Barrick is paying $US6.5B worth of shares.
Sirius XM also revealed an all-stock acquisition of Pandora Media.
In addition, Michael Kors was reported to be prepared to outlay $US~2.4B for control of Versace.
A major change was effected prior to last night’s US trade for the S&P Dow Jones Indices’ Global Industry Classification Standard (GICS), in particular regarding technology, media and consumer classifications.
Google parent Alphabet, Amazon, Facebook and Netflix joined a new ‘communications services’ grouping, which also includes large entertainment/media stocks previously belonging to the consumer discretionary sector.
Apple has been retained within the S&P technology index, with a 20% weighting against the former 16%.
The Australian market commences today’s trade on largely negative overnight international equities trade leads as US domestic and international political issues continue to stew.
In overnight commodities trade, oil picked up the pace of Friday’s gains.
US (December) gold futures turned higher.
Iron ore (62% Fe, China port) remained steady during a public holiday in China.
LME copper settled a little lower. Nickel and aluminium swung to decisive falls.
The $A fell to ~US72.50c after trading at ~US72.75c early yesterday evening, but has fallen this morning.
Locally today, a weekly consumer sentiment report is due pre-trade.
In addition, Australia’s national government is expected to reveal finalised 2017-2018 national budget figures.
Regionally, the Bank of Japan (BoJ) publishes the minutes from its September policy meeting 9.50am AEST. BoJ governor Haruhiko Kuroda is scheduled to speak publicly ~3.30pm.
Overseas Market Commentary
Major European and US equities markets fell on opening overnight, but the NASDAQ soon headed higher, ultimately proving a notable overnight exception.
New China-US import taxes for each other’s goods came into effect yesterday and overnight.
Earlier yesterday, un-named sources were cited as claiming China had scrapped plans for trade talks in Washington, arranged for this week following a reported invitation weeks earlier from the US treasury secretary. The US president’s threats of additional tariffs were also cited as a reason.
Meanwhile in the US, reports emerged the deputy Attorney General was prepared to resign, and/or had actually resigned, further escalating domestic political tensions.
The deputy Attorney General has been responsible for governing the ongoing special counsel investigation into any Russian influence on the US 2016 presidential election.
Elsewhere, European Central Bank (ECB) president Mario Draghi appeared positive regarding the euro zone economy, in particular underlying inflation growth, when meeting with a European Parliament committee.
Mr Draghi’s comments helped push the euro higher to trade at thee-month peaks against the $US.
Mr Draghi also appeared keen to quell fears of any major impact from the UK’s planned departure from the European Union, except in the case of central derivatives clearances should the separation occur without any agreement on regulations governing financial transactions.
In US data releases, the Chicago Fed August national activity was reported flat, at 0.18, following an upward revision of the July reading from 0.13.
A Texas region manufacturing index fell to 28.1 from 30.9, markedly undershooting forecasts of 31.0.
Earlier, IFO released the results of its monthly business survey for Germany, indicating just slightly lower sentiment over the month for the current climate, conditions and expectations components.
Tonight in the US, two house price indices, a consumer sentiment report and regional manufacturing index are due.
In addition, the Federal Reserve commences a two-day policy meeting. Outcomes will be announced early Thursday morning (AEST).
The United Nations General Assembly will also attract further attention, with the US president scheduled to speak.
UK retailer Next, Nike and Manchester United are scheduled to lodge results. Trading updates are anticipated from travel specialists Carnival and Thomas Cook.
M&A activity featured in overnight corporate news, Barrick Gold and Randgold Resources announcing a merger under which Barrick shareholders will hold 64% of the new ~$US18B entity. Barrick is paying $US6.5B worth of shares.
Sirius XM also revealed an all-stock acquisition of Pandora Media.
In addition, Michael Kors was reported to be prepared to outlay $US~2.4B for control of Versace.
A major change was effected prior to last night’s US trade for the S&P Dow Jones Indices’ Global Industry Classification Standard (GICS), in particular regarding technology, media and consumer classifications.
Google parent Alphabet, Amazon, Facebook and Netflix joined a new ‘communications services’ grouping, which also includes large entertainment/media stocks previously belonging to the consumer discretionary sector.
Apple has been retained within the S&P technology index, with a 20% weighting against the former 16%.