Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should seek the relevant advice.
Market Opener – 21 Dec 2018
Local Markets Commentary
The Australian market commences Friday trade for the last full trading week of the year ahead of a CPI estimate out of Japan today and GDP readings for the US and UK tonight, following an overnight Bank of England warning and some significant commodity price moves.
In overnight commodities trade, oil dropped.
US (February) gold futures rallied.
Iron ore (China port 62% Fe) were propelled higher, beyond $US72.20/t.
LME copper and nickel turned modestly lower.
The $A rose to ~US71.15c after trading at US71.05c early yesterday evening.
Locally today, the Australian Bureau of Statistics releases additional and detailed employment statistics, following yesterday’s November figures.
Regionally, Japan releases November CPI 10.30am AEDT.
Overnight, the $US traded at three-month lows against Japan’s yen.
Thursday next week (27 December), China is scheduled to publish November industrial profits.
Overseas Market Commentary
Major European and US equities markets opened lower overnight and demonstrated weak risk sentiment throughout trade.
Notably, the NASDAQ Composite index tripped into ‘bear’ market territory intra-session, before receiving sufficient subsequent support to avoid a bear close.
The US president again threatened not to sign a funding bill by tonight’s midnight (US ET) deadline, citing insufficient support for a Mexico border wall. The funding is needed to ensure all government administrative functions continue through 8 February.
Following its last policy meeting for the year, the Bank of England (BoE) warned uncertainty surrounding the UK’s withdrawal from the European Union (EU) had ‘intensified considerably’, to the extent the central bank could not offer direction on how traditional economic indicators might influence monetary policy.
Meanwhile BoE policy committee members voted unanimously to retain the 0.75% borrowing rate.
Among overnight data releases, US weekly new unemployment claims rose by 8000.
The closely-watched Philadelphia region (mid-Atlantic) manufacturing index was reported at a two-year low, dropping 3.5 points to 9.4.
The Conference Board’s November leading index lifted 0.2% following a 0.1% October rise.
In the UK, November retail sales surprised on the upside, rising 1.4% following a 0.4% October fall.
Year-on-year, sales were 3.6% higher, against 2.4% in October.
In Mexico, the central bank raised the key interest rate by 0.25%, in part in an attempt to tame inflation.
Meanwhile, both the UK and the US have accused China’s administration of supporting hacking coming from China and seemingly targeting trade information, reportedly attacking Hewlett Packard Enterprise and IBM to access client devices.
Tonight in the US, a final September quarter GDP reading is due, together with November personal income and spending, durable goods orders, a consumer sentiment update from the University of Michigan and a Kansas City region manufacturing index.
In overnight corporate news, Walgreen Boots announced up to $US1B worth of cost cuts citing ‘challenging’ market competition, after reporting 9.9% higher $US33.8B quarterly sales.
Cigarette manufacturer Altria (owns Marlboro) revealed it had outlaid $US12.8B for a 35% holding in e-cigarette specialist Juul Labs.
The Australian market commences Friday trade for the last full trading week of the year ahead of a CPI estimate out of Japan today and GDP readings for the US and UK tonight, following an overnight Bank of England warning and some significant commodity price moves.
In overnight commodities trade, oil dropped.
US (February) gold futures rallied.
Iron ore (China port 62% Fe) were propelled higher, beyond $US72.20/t.
LME copper and nickel turned modestly lower.
The $A rose to ~US71.15c after trading at US71.05c early yesterday evening.
Locally today, the Australian Bureau of Statistics releases additional and detailed employment statistics, following yesterday’s November figures.
Regionally, Japan releases November CPI 10.30am AEDT.
Overnight, the $US traded at three-month lows against Japan’s yen.
Thursday next week (27 December), China is scheduled to publish November industrial profits.
Overseas Market Commentary
Major European and US equities markets opened lower overnight and demonstrated weak risk sentiment throughout trade.
Notably, the NASDAQ Composite index tripped into ‘bear’ market territory intra-session, before receiving sufficient subsequent support to avoid a bear close.
The US president again threatened not to sign a funding bill by tonight’s midnight (US ET) deadline, citing insufficient support for a Mexico border wall. The funding is needed to ensure all government administrative functions continue through 8 February.
Following its last policy meeting for the year, the Bank of England (BoE) warned uncertainty surrounding the UK’s withdrawal from the European Union (EU) had ‘intensified considerably’, to the extent the central bank could not offer direction on how traditional economic indicators might influence monetary policy.
Meanwhile BoE policy committee members voted unanimously to retain the 0.75% borrowing rate.
Among overnight data releases, US weekly new unemployment claims rose by 8000.
The closely-watched Philadelphia region (mid-Atlantic) manufacturing index was reported at a two-year low, dropping 3.5 points to 9.4.
The Conference Board’s November leading index lifted 0.2% following a 0.1% October rise.
In the UK, November retail sales surprised on the upside, rising 1.4% following a 0.4% October fall.
Year-on-year, sales were 3.6% higher, against 2.4% in October.
In Mexico, the central bank raised the key interest rate by 0.25%, in part in an attempt to tame inflation.
Meanwhile, both the UK and the US have accused China’s administration of supporting hacking coming from China and seemingly targeting trade information, reportedly attacking Hewlett Packard Enterprise and IBM to access client devices.
Tonight in the US, a final September quarter GDP reading is due, together with November personal income and spending, durable goods orders, a consumer sentiment update from the University of Michigan and a Kansas City region manufacturing index.
In overnight corporate news, Walgreen Boots announced up to $US1B worth of cost cuts citing ‘challenging’ market competition, after reporting 9.9% higher $US33.8B quarterly sales.
Cigarette manufacturer Altria (owns Marlboro) revealed it had outlaid $US12.8B for a 35% holding in e-cigarette specialist Juul Labs.