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Before making any investment decision, you should seek the relevant advice.
Market Opener – 1 Nov 2017
Local Markets Commentary
The Australian market commences a new month’s trade mid-week, ahead of new data out of China, and on mixed overnight commodities and mostly lacklustre equities leads.
Key domestic economic figures will also continue, ahead of the Reserve Bank of Australia’s (RBA) policy meeting Tuesday next week.
Post-US trade, a deadly vehicle attack off-road in Manhattan has raised international security tensions.
Reports have emerged also, of significant deaths and a possible radioactive leak at a nuclear base in North Korea early last month.
Regionally today, China’s October manufacturing PMI, as calculated by Caixin, is expected 12.45pm AEDST.
In overnight commodities trade, US gold futures turned lower. Oil extended recent gains. Iron ore (China port, 62% Fe) continued lower. LME copper swung lower, but nickel surged.
The $A fell to ~US76.55c after slipping below ~US76.70c yesterday evening.
Locally today, AiG publishes its October manufacturing activity index pre-trade.
October residential property prices are also due from CoreLogic this morning.
RBA-calculated commodity prices are expected post-trade.
Overseas Market Commentary
Major European and US equities markets largely opened higher overnight, but mostly failed to achieve convincing gains amid mixed earnings and data, ahead of central bank decisions in the US tonight and UK tomorrow night. Equities markets in Germany did not trade due to a public holiday.
An initial estimate of October eurozone CPI placed annual growth at 1.4%, a little below expectations.
September quarter GDP rose 0.6% for the three months and 2.5% year-on-year, slightly higher than anticipated, again in a preliminary reading.
September unemployment slipped 0.1% to 8.9%.
Meanwhile, GfK’s UK consumer confidence index declined by one to -10.
In the US, September quarter employment costs were reported 0.7% higher.
ISM’s Chicago PMI rose one point to 66.2, a more than 6.5-year peak.
The Conference Board’s 125.9 reading for consumer confidence represented an almost seven-year high.
Tonight in the US, the Federal Reserve announces outcomes from its policy meeting, with hints regarding a possible rate rise by year’s end and definitive plans regarding assets keenly awaited.
Data releases due tonight include a private sector employment report, ISM’s October manufacturing PMI, September construction spending, Markit’s final October PMI readings and weekly mortgage applications.
Allergan, Facebook, Honda Motor, Kraft Heinz, Office Depot, Prudential, Qualcomm, Tesla and Yamaha are among companies scheduled to report earnings today or tonight.
In overnight corporate news, Qualcomm dropped 7% on reports it may lose significant custom from Apple.
Kellogg and Mondelez International (reported late-Monday) benefited from well-received respective sales and profits, in general boosting consumer staples stocks.
BP doubled profits from a year ago and revealed plans to resume buy-backs.
Automation software and manufacturing controls specialist Rockwell Automation knocked back an unsolicited $US27.6B offer from Emerson Electric.
Earlier, Airbus admitted it was reviewing company reports in relation to US arms trade laws, due to uncovered ‘inaccuracies’.
The Australian market commences a new month’s trade mid-week, ahead of new data out of China, and on mixed overnight commodities and mostly lacklustre equities leads.
Key domestic economic figures will also continue, ahead of the Reserve Bank of Australia’s (RBA) policy meeting Tuesday next week.
Post-US trade, a deadly vehicle attack off-road in Manhattan has raised international security tensions.
Reports have emerged also, of significant deaths and a possible radioactive leak at a nuclear base in North Korea early last month.
Regionally today, China’s October manufacturing PMI, as calculated by Caixin, is expected 12.45pm AEDST.
In overnight commodities trade, US gold futures turned lower. Oil extended recent gains. Iron ore (China port, 62% Fe) continued lower. LME copper swung lower, but nickel surged.
The $A fell to ~US76.55c after slipping below ~US76.70c yesterday evening.
Locally today, AiG publishes its October manufacturing activity index pre-trade.
October residential property prices are also due from CoreLogic this morning.
RBA-calculated commodity prices are expected post-trade.
Overseas Market Commentary
Major European and US equities markets largely opened higher overnight, but mostly failed to achieve convincing gains amid mixed earnings and data, ahead of central bank decisions in the US tonight and UK tomorrow night. Equities markets in Germany did not trade due to a public holiday.
An initial estimate of October eurozone CPI placed annual growth at 1.4%, a little below expectations.
September quarter GDP rose 0.6% for the three months and 2.5% year-on-year, slightly higher than anticipated, again in a preliminary reading.
September unemployment slipped 0.1% to 8.9%.
Meanwhile, GfK’s UK consumer confidence index declined by one to -10.
In the US, September quarter employment costs were reported 0.7% higher.
ISM’s Chicago PMI rose one point to 66.2, a more than 6.5-year peak.
The Conference Board’s 125.9 reading for consumer confidence represented an almost seven-year high.
Tonight in the US, the Federal Reserve announces outcomes from its policy meeting, with hints regarding a possible rate rise by year’s end and definitive plans regarding assets keenly awaited.
Data releases due tonight include a private sector employment report, ISM’s October manufacturing PMI, September construction spending, Markit’s final October PMI readings and weekly mortgage applications.
Allergan, Facebook, Honda Motor, Kraft Heinz, Office Depot, Prudential, Qualcomm, Tesla and Yamaha are among companies scheduled to report earnings today or tonight.
In overnight corporate news, Qualcomm dropped 7% on reports it may lose significant custom from Apple.
Kellogg and Mondelez International (reported late-Monday) benefited from well-received respective sales and profits, in general boosting consumer staples stocks.
BP doubled profits from a year ago and revealed plans to resume buy-backs.
Automation software and manufacturing controls specialist Rockwell Automation knocked back an unsolicited $US27.6B offer from Emerson Electric.
Earlier, Airbus admitted it was reviewing company reports in relation to US arms trade laws, due to uncovered ‘inaccuracies’.