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Market Opener – 15 Oct 2018
Local Markets Commentary
The Australian market opens a new week’s trade ahead of further data out of China, and with some positive overnight Friday commodities trade.
US equities ultimately rallied but vacillated significantly intra-session, amid ongoing geopolitical developments. Futures are down this morning.
Regionally today, some investment houses are nominating ~2pm AEDT for China’s still anticipated September new lending and foreign direct investment reports.
Locally, a weekly capital city residential property price report is due pre-trade.
In overnight Friday commodities trade, oil turned higher, Brent crude just slightly.
US (December) gold futures were pushed lower.
Iron ore (China port, 62% Fe) continued to rise.
LME copper rallied, aluminium swung higher and nickel settled slightly lower.
The $A fell below US71.15c after trading at US71.20c early Friday evening, and has fallen further this morning.
Overseas Market Commentary
Marked choppy, swinging trade featured across major European US equities markets overnight Friday, key US indices ultimately recording a bounce.
Earlier, the US and China each confirmed plans for their leaders to meet during the G20 leaders’ summit scheduled for late-November, in Buenos Aires.
However, the US president later appeared to react to China’s record $US34.13B September trade surplus with the US, claiming there was more he could yet instigate ‘to hurt’ China’s economy. Currency accusations also simmered.
Equities and commodities traders however, demonstrated some relief at China’s September trade figures, reported Friday, in particular a notable rise in the overall value of exports.
Geopolitical news and select domestic political developments continued through the weekend.
Turkey released a US detainee, prompting some to call a near-term sustainable recovery for the lira.
The US and Saudi Arabia swapped threats over the disappearance of a journalist who was last seen entering a Saudi consul building in Turkey.
A regional election in Germany favoured far-right and environmentalist candidates against conservatives who are associates of one of the ruling national government parties.
In US administrative news, the president confirmed the possibility that the nation’s defence secretary could step down.
Meanwhile in the UK, some questioned plans to release a draft agreement with the European Union (EU) covering possible arrangements for next year’s scheduled UK separation from the EU, citing ongoing negotiations regarding matters immigration and finance.
Among mixed overnight Friday data releases, US September import prices were reported 0.5% higher for the month, impacted by fuel price increases, but export prices flat.
Each were expected to rise 0.2% following respective 0.4% and 0.2% falls in August.
Year-on-year, the respective figures stood at 3.5% and 2.7% gains.
A University of Michigan initial October consumer sentiment reading came in at 99.0, following forecasts of 100.4 and September’s 100.1.
Euro zone August industrial production surprised on the upside, rising 1.0% year-on-year, following a 0.7% decline in July.
In Germany, a final September CPI reading confirmed 2.2% (harmonised) year-on-year growth, 0.4% for the month. During August, CPI had remained flat, coming in at 1.9% annual growth.
Meanwhile, European Central Bank (ECB) president Mario Draghi described the euro region’s underlying inflation outlook as ‘gradual’, against a previous ‘relatively vigorous’ assessment.
Tonight in the US, September retail sales, a New York region business activity index and August business inventories are due.
Bank of America is among companies expected to report earnings as a new US reporting season warms.
In overnight Friday corporate news, JPMorgan Chase and Citigroup quarterly profits exceeded expectations, attributed to corporate tax easing. This appeared to support early US trade.
JPMorgan Chase’s fixed income trade dropped 10% year-on-year, however, even though overall profit jumped 24%
Wells Fargo settled 1.3% higher, even though adjusted quarterly profit, also reported Friday, undershot forecast.
The Australian market opens a new week’s trade ahead of further data out of China, and with some positive overnight Friday commodities trade.
US equities ultimately rallied but vacillated significantly intra-session, amid ongoing geopolitical developments. Futures are down this morning.
Regionally today, some investment houses are nominating ~2pm AEDT for China’s still anticipated September new lending and foreign direct investment reports.
Locally, a weekly capital city residential property price report is due pre-trade.
In overnight Friday commodities trade, oil turned higher, Brent crude just slightly.
US (December) gold futures were pushed lower.
Iron ore (China port, 62% Fe) continued to rise.
LME copper rallied, aluminium swung higher and nickel settled slightly lower.
The $A fell below US71.15c after trading at US71.20c early Friday evening, and has fallen further this morning.
Overseas Market Commentary
Marked choppy, swinging trade featured across major European US equities markets overnight Friday, key US indices ultimately recording a bounce.
Earlier, the US and China each confirmed plans for their leaders to meet during the G20 leaders’ summit scheduled for late-November, in Buenos Aires.
However, the US president later appeared to react to China’s record $US34.13B September trade surplus with the US, claiming there was more he could yet instigate ‘to hurt’ China’s economy. Currency accusations also simmered.
Equities and commodities traders however, demonstrated some relief at China’s September trade figures, reported Friday, in particular a notable rise in the overall value of exports.
Geopolitical news and select domestic political developments continued through the weekend.
Turkey released a US detainee, prompting some to call a near-term sustainable recovery for the lira.
The US and Saudi Arabia swapped threats over the disappearance of a journalist who was last seen entering a Saudi consul building in Turkey.
A regional election in Germany favoured far-right and environmentalist candidates against conservatives who are associates of one of the ruling national government parties.
In US administrative news, the president confirmed the possibility that the nation’s defence secretary could step down.
Meanwhile in the UK, some questioned plans to release a draft agreement with the European Union (EU) covering possible arrangements for next year’s scheduled UK separation from the EU, citing ongoing negotiations regarding matters immigration and finance.
Among mixed overnight Friday data releases, US September import prices were reported 0.5% higher for the month, impacted by fuel price increases, but export prices flat.
Each were expected to rise 0.2% following respective 0.4% and 0.2% falls in August.
Year-on-year, the respective figures stood at 3.5% and 2.7% gains.
A University of Michigan initial October consumer sentiment reading came in at 99.0, following forecasts of 100.4 and September’s 100.1.
Euro zone August industrial production surprised on the upside, rising 1.0% year-on-year, following a 0.7% decline in July.
In Germany, a final September CPI reading confirmed 2.2% (harmonised) year-on-year growth, 0.4% for the month. During August, CPI had remained flat, coming in at 1.9% annual growth.
Meanwhile, European Central Bank (ECB) president Mario Draghi described the euro region’s underlying inflation outlook as ‘gradual’, against a previous ‘relatively vigorous’ assessment.
Tonight in the US, September retail sales, a New York region business activity index and August business inventories are due.
Bank of America is among companies expected to report earnings as a new US reporting season warms.
In overnight Friday corporate news, JPMorgan Chase and Citigroup quarterly profits exceeded expectations, attributed to corporate tax easing. This appeared to support early US trade.
JPMorgan Chase’s fixed income trade dropped 10% year-on-year, however, even though overall profit jumped 24%
Wells Fargo settled 1.3% higher, even though adjusted quarterly profit, also reported Friday, undershot forecast.