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Market Opener – 21 Oct 2019
Local Markets Commentary
The Australian market opens a new week’s trade amid further uncertainty regarding likely UK-EU separation scenarios, with additional key data releases out of China and Japan today, and following violent protests in Hong Kong yesterday.
Post overnight Friday trade, the UK House of Commons voted effectively ‘not to vote’ on plans agreed by UK and EU negotiators proposed to govern the UK’s EU departure.
Under recent legislation, this required the UK PM to request from the EU a separation delay.
Such a written request was sent, but reportedly unsigned, together with signed correspondence outlining the PM’s view that any delay would prove detrimental.
Subsequently, a government spokesperson claimed the government still intended the UK to leave the EU come 31 October.
Regionally today, China is expected to release its September home price index 12.30pm AEDT.
Japan’s September trade figures are anticipated 10.50am AEDT.
Locally, several high-profile companies are reporting for the September quarter. SLK, SGP and WOR are hosting AGMs.
NHC is among companies trading ex-dividend. Please see p4 for a detailed list.
In overnight Friday commodities trade, oil swung lower.
US gold futures (December) also turned to post a decline.
Iron ore (Nymex CFR China, 62% Fe) turned higher, surpassing $US90.75.
LME copper and nickel rallied. Aluminium also recorded a gain.
The $A appreciated beyond US58.55c after trading at US68.40c early Friday evening.
Japan’s markets are scheduled to be closed tomorrow.
Post overnight Friday trade, the UK House of Commons voted effectively ‘not to vote’ on plans agreed by UK and EU negotiators proposed to govern the UK’s EU departure.
Under recent legislation, this required the UK PM to request from the EU a separation delay.
Such a written request was sent, but reportedly unsigned, together with signed correspondence outlining the PM’s view that any delay would prove detrimental.
Subsequently, a government spokesperson claimed the government still intended the UK to leave the EU come 31 October.
Regionally today, China is expected to release its September home price index 12.30pm AEDT.
Japan’s September trade figures are anticipated 10.50am AEDT.
Locally, several high-profile companies are reporting for the September quarter. SLK, SGP and WOR are hosting AGMs.
NHC is among companies trading ex-dividend. Please see p4 for a detailed list.
In overnight Friday commodities trade, oil swung lower.
US gold futures (December) also turned to post a decline.
Iron ore (Nymex CFR China, 62% Fe) turned higher, surpassing $US90.75.
LME copper and nickel rallied. Aluminium also recorded a gain.
The $A appreciated beyond US58.55c after trading at US68.40c early Friday evening.
Japan’s markets are scheduled to be closed tomorrow.
Overseas Market Commentary
Negative sentiment featured across major European and US equities markets overnight Friday, amid the wait for a Saturday vote in the UK House of Commons regarding the arrangements UK negotiators had agreed with the European Union governing the planned 31 October departure of the UK from the EU.
In addition, the EU was facing the overnight implementation of new US import tariffs across a range of key EU exports.
Further, reports emerged the US administration’s chief economic advisor had been warning the US president of a potential US recession directly related to impacts from US trade relations.
Earlier Friday, China had reported 6% annual September quarter GDP growth, the slowest officially reported China growth rate in ~three decades, and 0.1% below consensus. Other material data releases had indicated select economic improvements, however.
Since then, reports have indicated China chased lower-price soybean purchases from Brazil last week, and that no US soybean purchases had been recorded since the earlier October US-China trade talks in Washington.
In overnight Friday data releases, the Conference Board’s September US leading index was estimated at -0.1% following -0.1% for August.
Tonight in the US, no material economic data releases are due.
Elsewhere, further UK parliamentary moves are anticipated following the Saturday vote pushing back a vote on the UK EU departure plans agreed to last week by UK and EU negotiators.
Companies scheduled to report earnings include: Atlas Copco, Halliburton, Kaiser Aluminium and Moelis.
In addition, the EU was facing the overnight implementation of new US import tariffs across a range of key EU exports.
Further, reports emerged the US administration’s chief economic advisor had been warning the US president of a potential US recession directly related to impacts from US trade relations.
Earlier Friday, China had reported 6% annual September quarter GDP growth, the slowest officially reported China growth rate in ~three decades, and 0.1% below consensus. Other material data releases had indicated select economic improvements, however.
Since then, reports have indicated China chased lower-price soybean purchases from Brazil last week, and that no US soybean purchases had been recorded since the earlier October US-China trade talks in Washington.
In overnight Friday data releases, the Conference Board’s September US leading index was estimated at -0.1% following -0.1% for August.
Tonight in the US, no material economic data releases are due.
Elsewhere, further UK parliamentary moves are anticipated following the Saturday vote pushing back a vote on the UK EU departure plans agreed to last week by UK and EU negotiators.
Companies scheduled to report earnings include: Atlas Copco, Halliburton, Kaiser Aluminium and Moelis.