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Market Opener – 08 Oct 2018
Local Markets Commentary
The Australian market opens a new week’s trade with new data and developments out of China over the weekend, and further influential data due today, with Japan’s markets closed and ahead of likely reduced trade in the US tonight.
Caixin is scheduled to release its China September services PMI 12.45am AEST.
Foreign direct investment figures are also anticipated anytime from today.
Over the weekend, China’s September foreign exchange reserves were reported at $US3.09 trillion, down $US22.69B for the month against a $US8.23B fall in August.
In addition, the People’s Bank of China reduced the amount of reserve cash banks are required to hold by 1%, in another move to foster domestic business lending and hence growth.
This represented the fourth cut this year, and will effectively make available a further $100B, but economists in China anticipate it will not be the last liquidity boost for 2018.
Overnight Friday international equities fell, and commodities trade proved mixed.
WTI crude settled essentially flat, while Brent declined.
US (December) gold futures turned to settle modestly higher.
LME copper and most base metals dropped. Nickel swung to a notable gain.
The $A fell to ~US70.50c after trading at US70.65c Friday evening.
Locally today, ANZ publishes its monthly job advertisements report 11.30am AEST.
Pre-trade, a weekly capital city residential property price report is due.
Japan’s markets are closed today, due to a public holiday.
Overseas Market Commentary
Major European and US equities markets fell early or on opening overnight Friday, but key US indices did not settle at session lows.
In international goods and services trade news, the US commerce secretary was reported to have confirmed the US was pursuing favourable trade deals with nations other than China that were structured in such a way that could effectively pressure China to alter its international trade stance.
As anticipated, US data and implied inflation impacts proved a major equities markets focus.
September employment figures included a 0.3% rise in wages for the month, the same as for August. Year-on-year, wages were 2.8% higher.
The number of jobs created was estimated at 134,000, against 270,000 during August.
The unemployment rate fell to 3.7% from 3.9%, on a flat 62.7% participation rate.
The August national trade deficit grew to $US53.2B from $US50B at the end of July.
Exports were valued at $US209.43B, against $US2011.08B.
August consumer credit grew by $US20.08B to $US3.94 trillion, representing 6.2% year-on-year growth.
In Germany, August factory orders rose 2% for the month, after falling 0.9% in July.
Producer prices rose 0.3% for the month and came in 3.1% higher year-on-year, following respective 0.2% and 2.9% July increases.
No major US data releases are scheduled for tonight, but Germany’s economic health remains forefront, with an industrial production update anticipated.
US equities and commodities markets are scheduled to trade as normal tonight even though Columbus Day is observed.
Fixed income markets will be impacted, however, and general trading volumes are expected to be relatively light.
The Australian market opens a new week’s trade with new data and developments out of China over the weekend, and further influential data due today, with Japan’s markets closed and ahead of likely reduced trade in the US tonight.
Caixin is scheduled to release its China September services PMI 12.45am AEST.
Foreign direct investment figures are also anticipated anytime from today.
Over the weekend, China’s September foreign exchange reserves were reported at $US3.09 trillion, down $US22.69B for the month against a $US8.23B fall in August.
In addition, the People’s Bank of China reduced the amount of reserve cash banks are required to hold by 1%, in another move to foster domestic business lending and hence growth.
This represented the fourth cut this year, and will effectively make available a further $100B, but economists in China anticipate it will not be the last liquidity boost for 2018.
Overnight Friday international equities fell, and commodities trade proved mixed.
WTI crude settled essentially flat, while Brent declined.
US (December) gold futures turned to settle modestly higher.
LME copper and most base metals dropped. Nickel swung to a notable gain.
The $A fell to ~US70.50c after trading at US70.65c Friday evening.
Locally today, ANZ publishes its monthly job advertisements report 11.30am AEST.
Pre-trade, a weekly capital city residential property price report is due.
Japan’s markets are closed today, due to a public holiday.
Overseas Market Commentary
Major European and US equities markets fell early or on opening overnight Friday, but key US indices did not settle at session lows.
In international goods and services trade news, the US commerce secretary was reported to have confirmed the US was pursuing favourable trade deals with nations other than China that were structured in such a way that could effectively pressure China to alter its international trade stance.
As anticipated, US data and implied inflation impacts proved a major equities markets focus.
September employment figures included a 0.3% rise in wages for the month, the same as for August. Year-on-year, wages were 2.8% higher.
The number of jobs created was estimated at 134,000, against 270,000 during August.
The unemployment rate fell to 3.7% from 3.9%, on a flat 62.7% participation rate.
The August national trade deficit grew to $US53.2B from $US50B at the end of July.
Exports were valued at $US209.43B, against $US2011.08B.
August consumer credit grew by $US20.08B to $US3.94 trillion, representing 6.2% year-on-year growth.
In Germany, August factory orders rose 2% for the month, after falling 0.9% in July.
Producer prices rose 0.3% for the month and came in 3.1% higher year-on-year, following respective 0.2% and 2.9% July increases.
No major US data releases are scheduled for tonight, but Germany’s economic health remains forefront, with an industrial production update anticipated.
US equities and commodities markets are scheduled to trade as normal tonight even though Columbus Day is observed.
Fixed income markets will be impacted, however, and general trading volumes are expected to be relatively light.