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Market Opener – 05 Mar 2019
Local Markets Commentary
The Australian market opens today’s trade ahead of a Reserve Bank of Australia (RBA) post-policy meeting statement, and new data for China, while another batch of high-profile domestic stocks trades ex-dividend.
International equities trade largely proved restive.
In overnight commodities trade, oil turned higher.
US gold futures (April) fell further.
LME copper was again pushed lower while nickel continued yet higher. Aluminium fell.
Iron ore (China port, 62% Fe) traded modestly lower after two strong sessions.
The $A was ultimately constrained within a relatively narrow range after trading at ~US70.85c early yesterday evening.
Locally today, the RBA holds a policy meeting, from which it will announce outcomes 2.30pm AEDT.
AiG’s February services sector activity index and a weekly consumer sentiment reading are due pre-trade.
The Australian Bureau of Statistics (ABS) publishes net exports within December quarter current account figures 11.30am AEDT.
Large-cap stocks trading ex-dividend today include EHE, MPL, NCK, NEC, OSH, SBM and SKI. Please see pp3-4 for details.
Regionally, Caixin is due to release its China February services PMI 12.45pm AEDT.
China’s annual National People’s Congress also commences today.
Overseas Market Commentary
US equities markets lost momentum in early trade overnight, prolonging significant chop across major mainland European indices.
Sentiment across key US indices turned to improve steadily in second-half trade, however.
China-US trade negotiation progress was again touted, together with a possible culmination late this month, but US and some euro zone and UK data also again fell short of expectations.
December construction spending fell 0.6% after a 0.8% November rise, and following expectations of a further, albeit modest, gain.
ISM’s New York business activity index slipped 2.3 points to a nonetheless robust 61.1.
Euro zone January producer prices rose 0.4% for the month and 3.0% year-on-year.
This, not in a small part to energy prices which rose 0.4% following a 2.7% December drop.
January retail sales slide 16% for the month, after an 11.7% December gain. Compared with January 2018 however, sales were 5.6% higher.
In the UK, the February construction sector activity index was reported in contraction mode, at 49.5, against 50.6 for January.
Tonight in the US, ISM’s influential February services sector activity index is keenly anticipated, as it will influence GDP predictions.
December new home sales and a final Markit February services PMI are also expected.
Elsewhere, Bank of England governor Mark Carney’s testimony to House of Lords members is keenly anticipated, given the uncertainty surrounding the initial UK-European separation 29 March deadline.
Companies scheduled to report earnings or updates later today or tonight include Intertek, Kohl’s, Paddy Power, Target Corp, Urban Outfitters and Weibo.
In overnight corporate news, China’s Alibaba and US specialist retailer Office Depot revealed they were establishing an e-commerce website which would carry both brands and deliver access to each other’s suppliers, customers and sales agents.
Newmont Mining officially rejected Barrick Gold’s takeover proposal.
Salesforce reported post-US trade, impressing with quarterly earnings but not with outlook.
The Australian market opens today’s trade ahead of a Reserve Bank of Australia (RBA) post-policy meeting statement, and new data for China, while another batch of high-profile domestic stocks trades ex-dividend.
International equities trade largely proved restive.
In overnight commodities trade, oil turned higher.
US gold futures (April) fell further.
LME copper was again pushed lower while nickel continued yet higher. Aluminium fell.
Iron ore (China port, 62% Fe) traded modestly lower after two strong sessions.
The $A was ultimately constrained within a relatively narrow range after trading at ~US70.85c early yesterday evening.
Locally today, the RBA holds a policy meeting, from which it will announce outcomes 2.30pm AEDT.
AiG’s February services sector activity index and a weekly consumer sentiment reading are due pre-trade.
The Australian Bureau of Statistics (ABS) publishes net exports within December quarter current account figures 11.30am AEDT.
Large-cap stocks trading ex-dividend today include EHE, MPL, NCK, NEC, OSH, SBM and SKI. Please see pp3-4 for details.
Regionally, Caixin is due to release its China February services PMI 12.45pm AEDT.
China’s annual National People’s Congress also commences today.
Overseas Market Commentary
US equities markets lost momentum in early trade overnight, prolonging significant chop across major mainland European indices.
Sentiment across key US indices turned to improve steadily in second-half trade, however.
China-US trade negotiation progress was again touted, together with a possible culmination late this month, but US and some euro zone and UK data also again fell short of expectations.
December construction spending fell 0.6% after a 0.8% November rise, and following expectations of a further, albeit modest, gain.
ISM’s New York business activity index slipped 2.3 points to a nonetheless robust 61.1.
Euro zone January producer prices rose 0.4% for the month and 3.0% year-on-year.
This, not in a small part to energy prices which rose 0.4% following a 2.7% December drop.
January retail sales slide 16% for the month, after an 11.7% December gain. Compared with January 2018 however, sales were 5.6% higher.
In the UK, the February construction sector activity index was reported in contraction mode, at 49.5, against 50.6 for January.
Tonight in the US, ISM’s influential February services sector activity index is keenly anticipated, as it will influence GDP predictions.
December new home sales and a final Markit February services PMI are also expected.
Elsewhere, Bank of England governor Mark Carney’s testimony to House of Lords members is keenly anticipated, given the uncertainty surrounding the initial UK-European separation 29 March deadline.
Companies scheduled to report earnings or updates later today or tonight include Intertek, Kohl’s, Paddy Power, Target Corp, Urban Outfitters and Weibo.
In overnight corporate news, China’s Alibaba and US specialist retailer Office Depot revealed they were establishing an e-commerce website which would carry both brands and deliver access to each other’s suppliers, customers and sales agents.
Newmont Mining officially rejected Barrick Gold’s takeover proposal.
Salesforce reported post-US trade, impressing with quarterly earnings but not with outlook.