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Market Opener – 22 Mar 2018
Local Markets Commentary
The Australian market opens today’s trade on positive key commodities leads, but again following vacillating overnight international equities trade, ahead of influential domestic data.
In commodities trade, oil picked up the pace of Tuesday’s rally.
Gold futures swung higher.
LME copper also turned and settled with a gain.
Iron ore (China port, 62% Fe) rose, following another run of falls.
The $A appreciated markedly after falling from ~US77.05c to ~US76.95c early yesterday evening.
Locally today, February employment figures, as calculated by the Australian Bureau of Statistics (ABS), are due 11.30am AEDST. The ABS also publishes a September quarter 2017 detailed demographics report.
CAR and FLT are among companies trading ex-dividend. Please see pp3-4 for detailed information.
Regionally today, an initial March manufacturing PMI is due for Japan 11.30am AEDST, ahead of a February CPI reading tomorrow.
This morning, the Reserve Bank of New Zealand has retained its main interest rate at 1.75%.
Overseas Market Commentary
Swinging, choppy trade again featured across major European and US equities markets, US indices vacillating the most in late trade following several market-significant announcements.
The Federal Reserve acted in accordance with expectations, raising the overnight lending rate by 0.25% to 1.50% - 1.75%.
A minimum two further rises this year were also forecast, with some FOMC members reportedly still opting for a total four for the year. The Fed statement also suggested three additional increases in 2019 and two for 2020.
Meanwhile, the US administration confirmed proposed new tariffs on imports from China, but said plans would first be released, likely tonight, for industry consideration, rather than for near-term implementation.
In addition, reports emerged a $US1.3 trillion US administration funding bill could attract sufficient support to avoid another temporary partial shutdown of government services from as early as midnight Friday this week.
Among US data releases, February existing home sales rose 3%, following expectations of a 0.5% increase on tight supply.
Weekly mortgage application volumes were reported 5% lower than a year earlier however, and 1.1% lower for the week, but 30-year rates averaged ~4.4%, close to a four-year peak.
Elsewhere, UK wages growth was estimated at 2.6% (excluding bonuses for the three months to January, following 2.5% for the December quarter.
Unemployment fell 0.1% to 4.3% over the January quarter. The total number employed rose, but so did the number of people without employment.
Germany’s IFO Institute released a 2.6% 2018 GDP growth forecast, but predicted 2.1% for 2019.
Earlier, China announced regulatory consolidation for media (including film entertainment and publishing), and also licensing and additional data requirements on international companies offering electronic payment options within China.
Tonight in the US, weekly new unemployment claims, Markit March PMIs, a leading index report a house price index and a regional manufacturing index are due.
Elsewhere, the Bank of England holds a policy meeting.
Companies scheduled to report earnings later today and tonight include Nike and PetroChina. Sky trades ex-dividend on the FTSE 100.
The Australian market opens today’s trade on positive key commodities leads, but again following vacillating overnight international equities trade, ahead of influential domestic data.
In commodities trade, oil picked up the pace of Tuesday’s rally.
Gold futures swung higher.
LME copper also turned and settled with a gain.
Iron ore (China port, 62% Fe) rose, following another run of falls.
The $A appreciated markedly after falling from ~US77.05c to ~US76.95c early yesterday evening.
Locally today, February employment figures, as calculated by the Australian Bureau of Statistics (ABS), are due 11.30am AEDST. The ABS also publishes a September quarter 2017 detailed demographics report.
CAR and FLT are among companies trading ex-dividend. Please see pp3-4 for detailed information.
Regionally today, an initial March manufacturing PMI is due for Japan 11.30am AEDST, ahead of a February CPI reading tomorrow.
This morning, the Reserve Bank of New Zealand has retained its main interest rate at 1.75%.
Overseas Market Commentary
Swinging, choppy trade again featured across major European and US equities markets, US indices vacillating the most in late trade following several market-significant announcements.
The Federal Reserve acted in accordance with expectations, raising the overnight lending rate by 0.25% to 1.50% - 1.75%.
A minimum two further rises this year were also forecast, with some FOMC members reportedly still opting for a total four for the year. The Fed statement also suggested three additional increases in 2019 and two for 2020.
Meanwhile, the US administration confirmed proposed new tariffs on imports from China, but said plans would first be released, likely tonight, for industry consideration, rather than for near-term implementation.
In addition, reports emerged a $US1.3 trillion US administration funding bill could attract sufficient support to avoid another temporary partial shutdown of government services from as early as midnight Friday this week.
Among US data releases, February existing home sales rose 3%, following expectations of a 0.5% increase on tight supply.
Weekly mortgage application volumes were reported 5% lower than a year earlier however, and 1.1% lower for the week, but 30-year rates averaged ~4.4%, close to a four-year peak.
Elsewhere, UK wages growth was estimated at 2.6% (excluding bonuses for the three months to January, following 2.5% for the December quarter.
Unemployment fell 0.1% to 4.3% over the January quarter. The total number employed rose, but so did the number of people without employment.
Germany’s IFO Institute released a 2.6% 2018 GDP growth forecast, but predicted 2.1% for 2019.
Earlier, China announced regulatory consolidation for media (including film entertainment and publishing), and also licensing and additional data requirements on international companies offering electronic payment options within China.
Tonight in the US, weekly new unemployment claims, Markit March PMIs, a leading index report a house price index and a regional manufacturing index are due.
Elsewhere, the Bank of England holds a policy meeting.
Companies scheduled to report earnings later today and tonight include Nike and PetroChina. Sky trades ex-dividend on the FTSE 100.