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Market Opener – 12 Oct 2018
Local Markets Commentary
The Australian market commences Friday trade with decisively negative leads again from overnight international equities trade, plus a stronger $A, and ahead of influential data out of China and material domestic reports.
China’s September trade statistics are scheduled for release 1.30pm AEDT.
September finance figures are anticipated this evening.
Locally today, the Reserve Bank of Australia (RBA) is due to publish its six-monthly financial stability review at 11.30am AEDT.
The Australian Bureau of Statistics (ABS) is scheduled to release August housing finance at the same time.
In mixed overnight commodities trade, oil extended Wednesday’s losses, even picking up the pace of declines.
US (December) gold futures, plus other precious metals, rallied.
Iron ore (China port, 62% Fe) traded slightly higher.
LME copper and nickel settled little changed. Aluminium continued lower.
The $A was propelled towards US71.25c after trading at ~US70.90c early yesterday evening.
Overseas Market Commentary
Choppy trade featured across European and US equities markets overnight, most indices again settling close to session lows.
Gold traded at nine-week peaks, energy stocks suffered from further oil price falls, and China’s economic growth prospects remained in focus.
Ten of 11 S&P 500 major sectors dropped more than 1%, the communication services sector proving the exception, but nonetheless continuing Wednesday’s decline.
UK PM Theresa May confirmed to her cabinet that progress had been made on arrangements governing the UK’s departure from the European Union (EU).
Trade and security measures are reportedly still considered a long way from settled, however.
The British pound nonetheless traded at three-week highs.
In new data releases, US September CPI growth was estimated at 0.1% for the month and 2.3% year-on-year, undershooting forecasts, and following 0.2% and 2.7% headline figures in August.
Core (excluding food and energy prices) CPI also came in at 0.1% growth for the month, and 2.2% year-on-year.
Weekly new unemployment claims rose by 7000, the four-week moving average growing by 2500.
In Germany, the government lowered its 2018 and 2019 GDP forecasts from previous 2.3% and 2.1% predictions to 1.8% for each year.
The economy minister cited international trade battles and a domestic shortage of skilled workers as the major factors influencing the revisions.
The European Central Bank’s (ECB) September policy meeting minutes also revealed some policy setters regarded global trade conflicts as possibly extending this year’s regional economic slowing.
Inflation was also seen as heading towards 2% as cost increases grew and spread.
Tonight in the US, there is plenty that could toy with sentiment.
Companies scheduled to report earnings include Citigroup, JPMorgan Chase and Wells Fargo, and three US Federal Reserve officials are scheduled to speak publicly (one from Bali).
In data releases, September import and export prices are due, together with an initial October consumer sentiment reading from the University of Michigan.
The Australian market commences Friday trade with decisively negative leads again from overnight international equities trade, plus a stronger $A, and ahead of influential data out of China and material domestic reports.
China’s September trade statistics are scheduled for release 1.30pm AEDT.
September finance figures are anticipated this evening.
Locally today, the Reserve Bank of Australia (RBA) is due to publish its six-monthly financial stability review at 11.30am AEDT.
The Australian Bureau of Statistics (ABS) is scheduled to release August housing finance at the same time.
In mixed overnight commodities trade, oil extended Wednesday’s losses, even picking up the pace of declines.
US (December) gold futures, plus other precious metals, rallied.
Iron ore (China port, 62% Fe) traded slightly higher.
LME copper and nickel settled little changed. Aluminium continued lower.
The $A was propelled towards US71.25c after trading at ~US70.90c early yesterday evening.
Overseas Market Commentary
Choppy trade featured across European and US equities markets overnight, most indices again settling close to session lows.
Gold traded at nine-week peaks, energy stocks suffered from further oil price falls, and China’s economic growth prospects remained in focus.
Ten of 11 S&P 500 major sectors dropped more than 1%, the communication services sector proving the exception, but nonetheless continuing Wednesday’s decline.
UK PM Theresa May confirmed to her cabinet that progress had been made on arrangements governing the UK’s departure from the European Union (EU).
Trade and security measures are reportedly still considered a long way from settled, however.
The British pound nonetheless traded at three-week highs.
In new data releases, US September CPI growth was estimated at 0.1% for the month and 2.3% year-on-year, undershooting forecasts, and following 0.2% and 2.7% headline figures in August.
Core (excluding food and energy prices) CPI also came in at 0.1% growth for the month, and 2.2% year-on-year.
Weekly new unemployment claims rose by 7000, the four-week moving average growing by 2500.
In Germany, the government lowered its 2018 and 2019 GDP forecasts from previous 2.3% and 2.1% predictions to 1.8% for each year.
The economy minister cited international trade battles and a domestic shortage of skilled workers as the major factors influencing the revisions.
The European Central Bank’s (ECB) September policy meeting minutes also revealed some policy setters regarded global trade conflicts as possibly extending this year’s regional economic slowing.
Inflation was also seen as heading towards 2% as cost increases grew and spread.
Tonight in the US, there is plenty that could toy with sentiment.
Companies scheduled to report earnings include Citigroup, JPMorgan Chase and Wells Fargo, and three US Federal Reserve officials are scheduled to speak publicly (one from Bali).
In data releases, September import and export prices are due, together with an initial October consumer sentiment reading from the University of Michigan.