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Market Opener – 22 Jul 2019
Local Markets Commentary
The Australian market opens a new week’s trade on strained Middle East relations, further raising the prospect of significant targeted Iran-western alliance military activity.
Overnight Friday, reports emerged Iran had detained a UK-marked vessel in the Strait of Hormuz. Images and audio recordings subsequently confirmed this.
Kuwait, Qatar and Saudi Arabia have each officially commented over the past 24 hours, as the UK confirmed it was considering ‘options’.
Locally today, a weekly capital city residential property price report is due pre-trade.
In overnight Friday commodities trade, oil turned higher.
US gold futures (August) settled slightly lower.
Iron ore (China port, 62% Fe) again barely moved, this time ultimately adding US12c/t.
LME copper rallied. Nickel turned and fell.
The $A was pushed below US70.45c after trading at ~US70.60c early Friday evening.
Overnight Friday, reports emerged Iran had detained a UK-marked vessel in the Strait of Hormuz. Images and audio recordings subsequently confirmed this.
Kuwait, Qatar and Saudi Arabia have each officially commented over the past 24 hours, as the UK confirmed it was considering ‘options’.
Locally today, a weekly capital city residential property price report is due pre-trade.
In overnight Friday commodities trade, oil turned higher.
US gold futures (August) settled slightly lower.
Iron ore (China port, 62% Fe) again barely moved, this time ultimately adding US12c/t.
LME copper rallied. Nickel turned and fell.
The $A was pushed below US70.45c after trading at ~US70.60c early Friday evening.
Overseas Market Commentary
Choppy trade ensued across US equities markets as they trended lower overnight Friday.
Volatility feature during European trade, major indices also closing well off decidedly positive openings.
Swinging sentiment was in part attributed to reports from the Middle East of further vessel seizures.
In addition, the new week was destined to begin relatively slowly in terms of data and earnings reports, ahead of a barrage of both throughout the remainder of this week.
In overnight Friday data releases, UK June public sector net borrowing came in at -£6.5B after -£3.8B for May.
Germany’s June producer prices fell 0.4% for the month following a 0.1% May decline. Year-on-year, June prices were 1.2% higher.
In the US, the University of Michigan’s initial July consumer sentiment reading was reported at 98.4, from 98.2 for June.
Tonight in the US, the Chicago Fed’s national activity index is due, ahead of key data, including manufacturing, throughout the week.
In addition, the Bank of Japan’s governor is due to address the International Monetary Fund.
Elsewhere, UK Conservative party polling to elect a new leader, and hence PM, has officially closed, with reports of the likely successor expected to continue ahead of confirmation anytime through Tuesday evening (AEST).
Companies scheduled to report earnings later today and tonight include: Halliburton, Hyundai Motor, LG Electronics, Moelis, Philips, Posco and Sharp.
Volatility feature during European trade, major indices also closing well off decidedly positive openings.
Swinging sentiment was in part attributed to reports from the Middle East of further vessel seizures.
In addition, the new week was destined to begin relatively slowly in terms of data and earnings reports, ahead of a barrage of both throughout the remainder of this week.
In overnight Friday data releases, UK June public sector net borrowing came in at -£6.5B after -£3.8B for May.
Germany’s June producer prices fell 0.4% for the month following a 0.1% May decline. Year-on-year, June prices were 1.2% higher.
In the US, the University of Michigan’s initial July consumer sentiment reading was reported at 98.4, from 98.2 for June.
Tonight in the US, the Chicago Fed’s national activity index is due, ahead of key data, including manufacturing, throughout the week.
In addition, the Bank of Japan’s governor is due to address the International Monetary Fund.
Elsewhere, UK Conservative party polling to elect a new leader, and hence PM, has officially closed, with reports of the likely successor expected to continue ahead of confirmation anytime through Tuesday evening (AEST).
Companies scheduled to report earnings later today and tonight include: Halliburton, Hyundai Motor, LG Electronics, Moelis, Philips, Posco and Sharp.