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Market Opener – 22 Aug 2019
Local Markets Commentary
The Australian market commences today’s trade with a plethora of high-profile domestic earnings reports in hand, and optimistic overnight equities trade, ahead of key international events commencing tonight.
Locally today, further details regarding July employment statistics are due from the Australian Bureau of Statistics (ABS) 11.30am AEST.
Companies trading ex-dividend today include JBH, NCM and QBE. Please see p4 for a detailed list.
In overnight commodities trade, WTI crude pulled back but Brent rose moderately.
US gold futures (December) settled slightly lower.
Iron ore (Nymex CFR China, 62% Fe) continued its decline, at a quickened pace, and approached $US92.00/t.
LME copper turned to settle modestly higher. Nickel closed slightly lower.
The $A pulled back to ~US67.80c after approaching US67.90c early yesterday evening.
Meanwhile, G7 leaders are preparing to meet in France over the weekend.
International central bankers are gathering for three days from tonight in Wyoming, US.
Locally today, further details regarding July employment statistics are due from the Australian Bureau of Statistics (ABS) 11.30am AEST.
Companies trading ex-dividend today include JBH, NCM and QBE. Please see p4 for a detailed list.
In overnight commodities trade, WTI crude pulled back but Brent rose moderately.
US gold futures (December) settled slightly lower.
Iron ore (Nymex CFR China, 62% Fe) continued its decline, at a quickened pace, and approached $US92.00/t.
LME copper turned to settle modestly higher. Nickel closed slightly lower.
The $A pulled back to ~US67.80c after approaching US67.90c early yesterday evening.
Meanwhile, G7 leaders are preparing to meet in France over the weekend.
International central bankers are gathering for three days from tonight in Wyoming, US.
Overseas Market Commentary
Major European and US equities markets opened higher overnight, sentiment maintained throughout trade on potential stimulus and some pleasing corporate results, in particular in the US retail sector.
US yields for 10-year treasuries (government bonds) again briefly fell below those for two-year notes, but this seemed not to spook markets as it had a week earlier.
Neither did the US Federal Reserve’s policy meeting minutes, which revealed outlook risks were forefront in some discussions and that the decision for a rates cut was not unanimous (8 v 2).
The US president in the meantime appeared keen to let it be known he had been considering payroll tax reductions, for some time, and that this was not related to any recession.
He again berated the Federal Reserve, while promoting US prowess in trade deals progress.
In the meantime in Germany, yields for a 30-year bond auction fell to -0.11% from 0.30%.
Among overnight data releases, US, July existing home sales rose 2.5% for the month, following a 1.3% June fall.
Weekly mortgage applications fell by 0.9%, following the previous week’s 21.7% jump. 30-year mortgage rates averaged 3.9% against 3.93%.
Tonight in the US, the Federal Reserve-hosted three-day international central bankers’ annual symposium commences in Jackson Hole, Wyoming.
Weekly new unemployment claims are also due, together with preliminary August PMI readings and a leading index report.
Elsewhere, European Central Bank (ECB) July policy meeting minutes are eagerly awaited, as are preliminary regional PMI readings for August.
Companies scheduled to report earnings and or provide trading updates later today and tonight include: Antofagasta, CRH, Gap, HP Inc, Intuit, Ross Stores and Salesforce.com.
In overnight corporate news, Lowe’s and Target earnings reports pleased, boosting views that consumer sentiment remained sufficient to buoy the US economy.In the meantime, UK markets, including the London Metals Exchange (LME), are heading towards a Monday public holiday weekend.
US yields for 10-year treasuries (government bonds) again briefly fell below those for two-year notes, but this seemed not to spook markets as it had a week earlier.
Neither did the US Federal Reserve’s policy meeting minutes, which revealed outlook risks were forefront in some discussions and that the decision for a rates cut was not unanimous (8 v 2).
The US president in the meantime appeared keen to let it be known he had been considering payroll tax reductions, for some time, and that this was not related to any recession.
He again berated the Federal Reserve, while promoting US prowess in trade deals progress.
In the meantime in Germany, yields for a 30-year bond auction fell to -0.11% from 0.30%.
Among overnight data releases, US, July existing home sales rose 2.5% for the month, following a 1.3% June fall.
Weekly mortgage applications fell by 0.9%, following the previous week’s 21.7% jump. 30-year mortgage rates averaged 3.9% against 3.93%.
Tonight in the US, the Federal Reserve-hosted three-day international central bankers’ annual symposium commences in Jackson Hole, Wyoming.
Weekly new unemployment claims are also due, together with preliminary August PMI readings and a leading index report.
Elsewhere, European Central Bank (ECB) July policy meeting minutes are eagerly awaited, as are preliminary regional PMI readings for August.
Companies scheduled to report earnings and or provide trading updates later today and tonight include: Antofagasta, CRH, Gap, HP Inc, Intuit, Ross Stores and Salesforce.com.
In overnight corporate news, Lowe’s and Target earnings reports pleased, boosting views that consumer sentiment remained sufficient to buoy the US economy.In the meantime, UK markets, including the London Metals Exchange (LME), are heading towards a Monday public holiday weekend.