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Market Opener – 07 Sep 2017
Local Markets Commentary
Australian market trade commences on mixed overnight international leads, ahead of key domestic data, and as several influential stocks trade ex-dividend. Proposed Western Australian budget measures could also swing select trade.
July trade balance and retail sales figures are due 11.30am AEST.
Pre-trade, the AiG will release its August construction sector activity index.
Stocks trading ex-dividend today include BHP, CTD, FXL, MND, NHF and WOW.
In overnight commodities trade, US gold futures settled lower. Oil continued higher. As with Monday’s session, iron ore was pushed back. LME copper settled little changed, but nickel bounced.
The $A has gained after trading at ~US79.90c early yesterday evening.
Overseas Market Commentary
Mainland European equities markets fell on opening but recovered. Major US indices swung higher from the start. The NASDAQ wavered, however, and the FTSE struggled for traction, amid a stream of reports regarding Brexit uncertainty.
In the US, the Federal Reserve’s vice chair Stanley Fischer resigned, citing personal reasons, effective ~13 October. This is ~eight months earlier than the expiry of Mr Fischer’s term.
In addition, an agreement was secured between the president and Republican and Democrat leaders, enabling the national debt ceiling to be raised for three months, to fund the government through 15 December. The agreement reportedly was secured in association with a hurricane relief deal.
In data releases, ISM’s services sector activity index rose 1.4 to 55.3, against expectations of 55.8.
The Federal Reserve’s region-by-region economic (beige book) report again determined modest – moderate economic activity growth across all 12 regions, noting higher consumer spending in a majority.
The final national July trade deficit was calculated at $US43.7B against $US43.5B in June. Exports were reported 0.3% lower and imports down 0.2%.
In Germany, July factory order surprised on the downside, falling for the first time in three months, down 0.7% and following a 0.9% gain for June.
In addition, a construction PMI came down 0.9 to 54.9.
A euro zone retail PMI reading came in at an almost ambiguous 50.8.
Meanwhile, the Bank of Canada surprised with a 0.25% rate rise to 1.00%, using June quarter growth as its main rationale.
Tonight in the US, weekly new unemployment claims and final June quarter productivity figures are due.
Across the Atlantic, the European Central Bank holds a policy meeting, the same session a final reading for euro zone June quarter GDP is due.
The post-meeting press conference is keenly anticipated for comments regarding any asset purchase changes.
In overnight corporate news, Germany’s vehicle manufacturers notably benefited from positive research reports.
Australian market trade commences on mixed overnight international leads, ahead of key domestic data, and as several influential stocks trade ex-dividend. Proposed Western Australian budget measures could also swing select trade.
July trade balance and retail sales figures are due 11.30am AEST.
Pre-trade, the AiG will release its August construction sector activity index.
Stocks trading ex-dividend today include BHP, CTD, FXL, MND, NHF and WOW.
In overnight commodities trade, US gold futures settled lower. Oil continued higher. As with Monday’s session, iron ore was pushed back. LME copper settled little changed, but nickel bounced.
The $A has gained after trading at ~US79.90c early yesterday evening.
Overseas Market Commentary
Mainland European equities markets fell on opening but recovered. Major US indices swung higher from the start. The NASDAQ wavered, however, and the FTSE struggled for traction, amid a stream of reports regarding Brexit uncertainty.
In the US, the Federal Reserve’s vice chair Stanley Fischer resigned, citing personal reasons, effective ~13 October. This is ~eight months earlier than the expiry of Mr Fischer’s term.
In addition, an agreement was secured between the president and Republican and Democrat leaders, enabling the national debt ceiling to be raised for three months, to fund the government through 15 December. The agreement reportedly was secured in association with a hurricane relief deal.
In data releases, ISM’s services sector activity index rose 1.4 to 55.3, against expectations of 55.8.
The Federal Reserve’s region-by-region economic (beige book) report again determined modest – moderate economic activity growth across all 12 regions, noting higher consumer spending in a majority.
The final national July trade deficit was calculated at $US43.7B against $US43.5B in June. Exports were reported 0.3% lower and imports down 0.2%.
In Germany, July factory order surprised on the downside, falling for the first time in three months, down 0.7% and following a 0.9% gain for June.
In addition, a construction PMI came down 0.9 to 54.9.
A euro zone retail PMI reading came in at an almost ambiguous 50.8.
Meanwhile, the Bank of Canada surprised with a 0.25% rate rise to 1.00%, using June quarter growth as its main rationale.
Tonight in the US, weekly new unemployment claims and final June quarter productivity figures are due.
Across the Atlantic, the European Central Bank holds a policy meeting, the same session a final reading for euro zone June quarter GDP is due.
The post-meeting press conference is keenly anticipated for comments regarding any asset purchase changes.
In overnight corporate news, Germany’s vehicle manufacturers notably benefited from positive research reports.