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Market Opener – 07 Aug 2019

Local Markets Commentary
The Australian market opens mid-week trade with a major domestic bank and two other large-cap stocks each reporting for the full year.

US equities markets ultimately bounced overnight, but futures have turned lower this morning.

Locally today, AiG releases its July construction sector activity index pre-trade.

The Australian Bureau of Statistics (ABS) reports June household and business finance, including housing finance approvals 11.30am AEST.

In addition today, Reserve Bank of Australia (RBA) assistant governor (business services) Lindsay Boulton is a panel participant in an annual Technology in Government conference, 9.10am AEST, Canberra.

Regionally today, the Reserve Bank of New Zealand holds a policy meeting from which many economists expect a rate cut.

In overnight commodities trade, oil continued to fall.

US gold futures (December) rose further, although at a more moderate pace. 

Iron ore (Nymex CFR China, 62% Fe) dropped further, but also at a much slower rate, nonetheless settling below $US100/t.

LME copper turned modestly higher. 

The $A fell to ~US67.60c after trading at US67.90c early yesterday evening.

Overseas Market Commentary
Major European and US equities markets largely chopped and swung overnight, European indices closing at or near session lows and key US indices settling at or near session highs. 

Currencies, interest rates and international economic prospects remained in focus.

The People’s Bank of China had kept the yuan slightly stronger yesterday than on Monday.

A US administration trade adviser promoted US Federal Reserve rate cuts totalling up to 1.00% by year’s end, but a US Federal Reserve regional president, previously on the record as in favour of a series of rates cut this year, publicly advocated waiting to see the effects of the recent cut, and how international trade negotiations would play out.

Another adviser offered the US president remained keen on an appropriate trade agreement with China.

Meanwhile, the US president promoted US economic strength.

Among overnight data releases, Germany’s June factory orders rose 2.5% for the month after falling 2.0% in May. 

A July construction PMI slipped from 50.0 into a contractionary 49.5.

In the UK, the BRC July retail sales monitor improved 0.3% year-on-year, following a 1.6% increase a year earlier, spending mostly growing on non-essential items and activities. 

In the US, a June job openings report included 36,000 fewer opportunities than in May, pushing the openings rate down 0.1% to 4.6%.

In addition, 58,000 fewer positions were filled, the falls mostly occurring in manufacturing and business and professional services.

Tonight in the US, June consumer credit and weekly mortgage applications are due.

In addition, at ASX-close today, the Chicago Federal Reserve president will host a media breakfast event regarding the domestic economy.

Elsewhere later today, a rates decision is anticipated from the Reserve Bank of India.

Companies scheduled to report earnings later today and tonight include: ABN AMRO, American International Group, Autohome, Comsys Holdings, CVS Health, Commerzbank, E.ON, Fox Corp, Hapag Lloyd, Kogas, Liberty Global, Lyft, Monster Beverage, Roku, Sumitomo Mitsui Construction, Toshiba, UniCredit, Weibo and Wirecard. 

In overnight corporate news, video game manufacturer Take-Two gained on a boost to full-year profit guidance following a better-than-anticipated June quarter. 

Mastercard announced a proposed $US3.2B outlay for the corporate services business of payments technology specialist Nets.

Walt Disney undershot profit and revenue expectations when reporting post-US trade.
Posted on 7/08/2019 8:00:00 AM

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