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Market Opener – 25 Jun 2018
Local Markets Commentary
The Australian market opens the last trading week of the financial year on mostly positive overnight Friday international equities trade, good gains for some key commodities, developments in China, the EU and Turkey since then, and some key domestic corporate announcements this morning.
Over the weekend, the People’s Bank of China effectively allowed an additional $US108B worth of liquidity by reducing the required reserve ratios for certain lenders by 0.5%. The nation’s central bank added that policy would remain ‘prudent and neutral’, after the yuan traded at a five-month low against the $US on Friday.
In addition, the European Union (EU) has been reported to be preparing to respond to the US threat of higher import taxes for vehicles from the EU.
Further, presidential and parliamentary elections in Turkey have appeared to deliver victory to president Erdogan and his party.
Locally today, a weekly capital cities residential property price report is due pre-trade.
Also pre-trade, several high-profile stocks have lodged significant updates. The list includes ANZ, CBA, KMD, and MTS, which has reported for the full year.
AAD notably trades ex-dividend.
In overnight Friday commodities trade, oil was pushed sharply higher.
US gold futures settled little changed.
Iron ore (China port, 62% Fe) turned to post a gain.
LME copper settled essentially flat. Nickel rallied.
The $A was pushed to ~US74.45c after appreciating to ~US74.35c early Friday evening.
Overseas Market Commentary
Major European and US equities markets mostly settled higher overnight Friday, benefiting in part from rallying oil prices.
Traders supported the DJIA to avoid a 40-year record, after having closed lower for the previous eight sessions.
In the meantime, the US warned of placing a 20% import tax on cars manufactured in Europe.
The euro zone’s initial June manufacturing PMI came in at 55 from 55.9 in May.
In Germany, the manufacturing PMI was estimated at 55.9, following 56.9 for May.
The Bank of England’s quarterly bulletin warned of Britain’s exposure to any major slowdown in China’s economy.
An initial Markit June manufacturing PMI for the US fell 1.8 points to a nonetheless strong 54.6. The services sector activity index slipped 0.3 to 56.5.
Tonight in the US, the Chicago Fed national activity index for May, May new home sales and a Texas region manufacturing index are due.
The Australian market opens the last trading week of the financial year on mostly positive overnight Friday international equities trade, good gains for some key commodities, developments in China, the EU and Turkey since then, and some key domestic corporate announcements this morning.
Over the weekend, the People’s Bank of China effectively allowed an additional $US108B worth of liquidity by reducing the required reserve ratios for certain lenders by 0.5%. The nation’s central bank added that policy would remain ‘prudent and neutral’, after the yuan traded at a five-month low against the $US on Friday.
In addition, the European Union (EU) has been reported to be preparing to respond to the US threat of higher import taxes for vehicles from the EU.
Further, presidential and parliamentary elections in Turkey have appeared to deliver victory to president Erdogan and his party.
Locally today, a weekly capital cities residential property price report is due pre-trade.
Also pre-trade, several high-profile stocks have lodged significant updates. The list includes ANZ, CBA, KMD, and MTS, which has reported for the full year.
AAD notably trades ex-dividend.
In overnight Friday commodities trade, oil was pushed sharply higher.
US gold futures settled little changed.
Iron ore (China port, 62% Fe) turned to post a gain.
LME copper settled essentially flat. Nickel rallied.
The $A was pushed to ~US74.45c after appreciating to ~US74.35c early Friday evening.
Overseas Market Commentary
Major European and US equities markets mostly settled higher overnight Friday, benefiting in part from rallying oil prices.
Traders supported the DJIA to avoid a 40-year record, after having closed lower for the previous eight sessions.
In the meantime, the US warned of placing a 20% import tax on cars manufactured in Europe.
The euro zone’s initial June manufacturing PMI came in at 55 from 55.9 in May.
In Germany, the manufacturing PMI was estimated at 55.9, following 56.9 for May.
The Bank of England’s quarterly bulletin warned of Britain’s exposure to any major slowdown in China’s economy.
An initial Markit June manufacturing PMI for the US fell 1.8 points to a nonetheless strong 54.6. The services sector activity index slipped 0.3 to 56.5.
Tonight in the US, the Chicago Fed national activity index for May, May new home sales and a Texas region manufacturing index are due.