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Market Opener – 04 Jun 2018
Local Markets Commentary
The Australian market opens a new week’s trade ahead of a myriad of domestic data releases today and tomorrow.
Since overnight Friday positive international trade:
• China has declared that previous trade and business agreements with the US could be negated by the introduction of tariffs and new adverse trade measures;
• G7 finance ministers, with the exception of the US, condemned the latest US tariffs announcement for Canada, the European Union and Mexico, recording their displeasure in a formal statement released Saturday at the end of a three-day summit in Whistler, Canada.
In mixed overnight Friday commodities trade, oil fell further, as did US gold futures.
Iron ore (China port, 62% Fe) turned higher.
LME copper, aluminium and nickel traded higher, nickel in rally mode.
The $A appreciated to ~US75.70c after falling below US75.45c early Friday evening.
Locally today, a flurry of economic indicators is due.
The Australian Bureau of Statistics (ABS) reports April retail sales and March quarter business indicators (incl profits and inventories) 11.30am AEST.
May job advertisements, as compiled by the ANZ, the Melbourne Institute’s monthly inflation gauge report and HIA’s May new home sales will also be published, ahead of another swag of reports and the Reserve Bank of Australia’s (RBA) policy meeting tomorrow.
Pre-trade, a weekly capital city residential property price report is due today.
New Zealand’s markets will remain closed today due to a public holiday.
Overseas Market Commentary
Major European and US equities markets headed higher on opening or from early trade overnight Friday, key European indices settling at or near session lows, however.
Earlier, Spain’s parliament had voted to remove the PM, replacing him with the opposition leader, who has since been sworn in.
Spain’s parliament is pro-European Union, but not so the new Italian parliament, determined, and approved by the president, overnight Thursday through Friday.
Threats continued in response to the US decision not to extend an exemption period for aluminium and steel imports from Canada, the European Union and Mexico.
In new US data releases, the national May employment report included the creation of 223,000 jobs, 25,000 more than forecast.
Average earnings rose 0.3% for the month and 2.7% year-on-year, following 0.1% and 2.6% respective figures for April.
Unemployment slipped 0.1% to 3.8%, an 18-year low.
In other US economic indicators, the ISM’s May manufacturing PMI was reported at 58.7, against 57.3 for April.
May construction spending rebounded 1.8% after dropping 1.7% in April.
In the euro zone, final May manufacturing PMIs generally provided little surprise, remaining robust.
Italy’s fell 0.8 to 52.7 however, and a final March national quarter GDP reading remained at 1.4% growth.
In the UK, the manufacturing PMI rose 0.5 to 54.4, against expectations of a 0.4 decline.
Tonight in the US, April factory orders and the ISM’s New York region business activity index are due.
Companies scheduled to report earnings include Dell Technologies and Virgin Media.
In overnight Friday and weekend corporate news, Société Générale and Italy’s UniCredit were reportedly conducting due diligence on a possible merger. Retailer Abercrombie & Fitch was pushed more than 8.5% lower, following a quarterly loss, but one that was not as bad as feared, coupled with revenue that surpassed expectations. Same store sales were likely the bruiser, rising 5% during the quarter but forecast for 2% - 4% gains in the current quarter.
Apple was reported to be advancing discussions with a possible network of apps, including Snap and Pinterest, that would jointly distribute advertisements.
The Australian market opens a new week’s trade ahead of a myriad of domestic data releases today and tomorrow.
Since overnight Friday positive international trade:
• China has declared that previous trade and business agreements with the US could be negated by the introduction of tariffs and new adverse trade measures;
• G7 finance ministers, with the exception of the US, condemned the latest US tariffs announcement for Canada, the European Union and Mexico, recording their displeasure in a formal statement released Saturday at the end of a three-day summit in Whistler, Canada.
In mixed overnight Friday commodities trade, oil fell further, as did US gold futures.
Iron ore (China port, 62% Fe) turned higher.
LME copper, aluminium and nickel traded higher, nickel in rally mode.
The $A appreciated to ~US75.70c after falling below US75.45c early Friday evening.
Locally today, a flurry of economic indicators is due.
The Australian Bureau of Statistics (ABS) reports April retail sales and March quarter business indicators (incl profits and inventories) 11.30am AEST.
May job advertisements, as compiled by the ANZ, the Melbourne Institute’s monthly inflation gauge report and HIA’s May new home sales will also be published, ahead of another swag of reports and the Reserve Bank of Australia’s (RBA) policy meeting tomorrow.
Pre-trade, a weekly capital city residential property price report is due today.
New Zealand’s markets will remain closed today due to a public holiday.
Overseas Market Commentary
Major European and US equities markets headed higher on opening or from early trade overnight Friday, key European indices settling at or near session lows, however.
Earlier, Spain’s parliament had voted to remove the PM, replacing him with the opposition leader, who has since been sworn in.
Spain’s parliament is pro-European Union, but not so the new Italian parliament, determined, and approved by the president, overnight Thursday through Friday.
Threats continued in response to the US decision not to extend an exemption period for aluminium and steel imports from Canada, the European Union and Mexico.
In new US data releases, the national May employment report included the creation of 223,000 jobs, 25,000 more than forecast.
Average earnings rose 0.3% for the month and 2.7% year-on-year, following 0.1% and 2.6% respective figures for April.
Unemployment slipped 0.1% to 3.8%, an 18-year low.
In other US economic indicators, the ISM’s May manufacturing PMI was reported at 58.7, against 57.3 for April.
May construction spending rebounded 1.8% after dropping 1.7% in April.
In the euro zone, final May manufacturing PMIs generally provided little surprise, remaining robust.
Italy’s fell 0.8 to 52.7 however, and a final March national quarter GDP reading remained at 1.4% growth.
In the UK, the manufacturing PMI rose 0.5 to 54.4, against expectations of a 0.4 decline.
Tonight in the US, April factory orders and the ISM’s New York region business activity index are due.
Companies scheduled to report earnings include Dell Technologies and Virgin Media.
In overnight Friday and weekend corporate news, Société Générale and Italy’s UniCredit were reportedly conducting due diligence on a possible merger. Retailer Abercrombie & Fitch was pushed more than 8.5% lower, following a quarterly loss, but one that was not as bad as feared, coupled with revenue that surpassed expectations. Same store sales were likely the bruiser, rising 5% during the quarter but forecast for 2% - 4% gains in the current quarter.
Apple was reported to be advancing discussions with a possible network of apps, including Snap and Pinterest, that would jointly distribute advertisements.