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Market Opener – 16 Oct 2018
Local Markets Commentary
The Australian market commences today’s trade following ambivalent overnight international equities and commodities trade, and ahead of new data out of China and key domestic reports.
China is scheduled to report September CPI and PPI 12.30pm AEDT.
Locally, the Reserve Bank of Australia (RBA) publishes the minutes of its October policy meeting 11.30am AEDT.
The Australian Bureau of Statistics (ABS) releases overall August lending finance figures at the same time.
A weekly consumer sentiment reading is due pre-trade.
In overnight commodities trade, oil extended Friday’s gains.
US (December) gold futures swung higher.
Iron ore (China port, 62% Fe) eased by US1c.
LME copper settled essentially flat. Nickel and aluminium were pushed lower.
The $A was traded back towards US71.30c after appreciating to ~US71.40c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets diverged overnight, all major indices again featuring choppy trade, but most in the US settling at session lows, against session highs for European exchanges.
US-Saudi tensions remained, with a growing chorus of US ally leader and business sector comments also suggesting to investors that Saudi Arabia’s global business and investment ventures, and the international banking sector could be at risk.
Earlier, the head of the People’s Bank of China openly acknowledged adverse domestic impacts from the current US trade policies, but sought to assure the central bank was well tooled to support China’s economy.
In addition, a US steel sector downgrade from an investment bank, which further reduced some ratings for specific sector-related stocks, appeared to influence sentiment in general.
Meanwhile, the British pound and euro headed lower against the $US, supporting select exporters.
In overnight data releases, US September retail sales were reported 0.1% higher, as they were for August. This against expectations of a possible 0.6% gain in September, but nonetheless representing a 4.7% 12-month rise.
A New York region manufacturing index came in at 21.1, after falling four points to 19 in September.
August business inventories rose 0.5% to $US1.96 trillion, 4.6% higher than a year ago.
Tonight in the US, September industrial production, a job openings report and housing market sentiment index are due.
Blackrock, CSX, Domino’s Pizza, Goldman Sachs, IBM, Infosys, Johnson & Johnson, Merlin Entertainments, Morgan Stanley, Netflix, Pearson, Rio Tinto and United Continental are among companies scheduled to report earnings or provide updates.
In overnight corporate news, Apple suffered a 1.5% fall following an analyst warning, in particular in relation to predictions of reduced China demand.
US department store chain Sears filed for bankruptcy and announced plans to close ~140 stores.
Bank of America traded more than 1.5% lower after adviser and underwriting fees plus loan business each appeared to undershoot expectations. Quarterly profit rose 32% however, supported by rate rises and tax relief.
The Australian market commences today’s trade following ambivalent overnight international equities and commodities trade, and ahead of new data out of China and key domestic reports.
China is scheduled to report September CPI and PPI 12.30pm AEDT.
Locally, the Reserve Bank of Australia (RBA) publishes the minutes of its October policy meeting 11.30am AEDT.
The Australian Bureau of Statistics (ABS) releases overall August lending finance figures at the same time.
A weekly consumer sentiment reading is due pre-trade.
In overnight commodities trade, oil extended Friday’s gains.
US (December) gold futures swung higher.
Iron ore (China port, 62% Fe) eased by US1c.
LME copper settled essentially flat. Nickel and aluminium were pushed lower.
The $A was traded back towards US71.30c after appreciating to ~US71.40c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets diverged overnight, all major indices again featuring choppy trade, but most in the US settling at session lows, against session highs for European exchanges.
US-Saudi tensions remained, with a growing chorus of US ally leader and business sector comments also suggesting to investors that Saudi Arabia’s global business and investment ventures, and the international banking sector could be at risk.
Earlier, the head of the People’s Bank of China openly acknowledged adverse domestic impacts from the current US trade policies, but sought to assure the central bank was well tooled to support China’s economy.
In addition, a US steel sector downgrade from an investment bank, which further reduced some ratings for specific sector-related stocks, appeared to influence sentiment in general.
Meanwhile, the British pound and euro headed lower against the $US, supporting select exporters.
In overnight data releases, US September retail sales were reported 0.1% higher, as they were for August. This against expectations of a possible 0.6% gain in September, but nonetheless representing a 4.7% 12-month rise.
A New York region manufacturing index came in at 21.1, after falling four points to 19 in September.
August business inventories rose 0.5% to $US1.96 trillion, 4.6% higher than a year ago.
Tonight in the US, September industrial production, a job openings report and housing market sentiment index are due.
Blackrock, CSX, Domino’s Pizza, Goldman Sachs, IBM, Infosys, Johnson & Johnson, Merlin Entertainments, Morgan Stanley, Netflix, Pearson, Rio Tinto and United Continental are among companies scheduled to report earnings or provide updates.
In overnight corporate news, Apple suffered a 1.5% fall following an analyst warning, in particular in relation to predictions of reduced China demand.
US department store chain Sears filed for bankruptcy and announced plans to close ~140 stores.
Bank of America traded more than 1.5% lower after adviser and underwriting fees plus loan business each appeared to undershoot expectations. Quarterly profit rose 32% however, supported by rate rises and tax relief.