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Market Opener – 17 Dec 2018
Local Markets Commentary
The Australian market commences the last full week of trade for 2018 with a domestic national budget update, new data out of China over the weekend, and a warning out of North Korea to the US yesterday in response to last week’s new sanctions.
Since Friday ASX trade, China’s November new home prices were reported 0.98% higher for the month.
Year-on-year, prices rose 9.3%, against 8.6% for October.
Sixty-three of 70 surveyed cities reported a rise in prices, against 65 in October.
Locally today, the Australian government is expected to release its mid-year budget update, known as the Mid-Year Economic & Fiscal Outlook (MYEFO) from pre-ASX trade.
Also pre-trade, a weekly capital city residential property price report is due.
A Conference Board leading index report is also anticipated today.
In overnight Friday commodities trade, oil turned and fell.
US (February) gold futures continued lower.
Iron ore (China port 62% Fe) was pushed sharply higher.
LME copper and aluminium settled modestly lower, but nickel rallied.
The $A appreciated to ~US71.85c after dropping to US71.60c early Friday evening.
Overseas Market Commentary
Major European and US equities markets dropped on opening overnight Friday.
Data releases from China, the euro zone and US disappointed from early Friday, bruising international growth sentiment, and the $US traded at 19-month highs.
In addition, a European Council meeting failed to offer the UK PM European Union (EU)-UK separation plan clarification and assurances, in particular regarding a Republic of Ireland customs border.
Among overnight Friday data releases, initial euro zone December manufacturing and services PMIs each came in at 51.4, following 51.8 and 53.4 respectively in November.
Germany’s readings were reported as 51.5 for manufacturing and 52.5 for the services sector, against respective 51.8 and 53.3 November readings.
Since then, France’s PM has confirmed the national 2019 deficit to GDP ratio will likely fall beyond the 3% European Union cap, at an estimated 3.2%.
In the US, November retail sales were reported 0.2% higher for the month and up 4.2% year-on-year, following 1.1% and 4.8% respectively for October.
Industrial production rose 0.6% for the month and 2% year-on-year, against a 0.2% pullback during October.
Initial December Markit PMI estimates fell 1.4 points to 53.9, and 1.3 points to 53.4, for the manufacturing and services sectors respectively.
Meanwhile, Saudi Arabia was reported to have given Pakistan $US1B in foreign reserves, while Pakistan awaits the outcome for a plea for assistance from the International Monetary Fund (IMF).
While criticising sanctions against Iran, Qatar announced a planned $US20B expansion in US energy sector activity, in particular in LNG production and export infrastructure.
Tonight in the US, a New York region business activity index is due.
Elsewhere, euro zone CPI and trade balance figures could influence some trade, if markedly different from expectations.
The Australian market commences the last full week of trade for 2018 with a domestic national budget update, new data out of China over the weekend, and a warning out of North Korea to the US yesterday in response to last week’s new sanctions.
Since Friday ASX trade, China’s November new home prices were reported 0.98% higher for the month.
Year-on-year, prices rose 9.3%, against 8.6% for October.
Sixty-three of 70 surveyed cities reported a rise in prices, against 65 in October.
Locally today, the Australian government is expected to release its mid-year budget update, known as the Mid-Year Economic & Fiscal Outlook (MYEFO) from pre-ASX trade.
Also pre-trade, a weekly capital city residential property price report is due.
A Conference Board leading index report is also anticipated today.
In overnight Friday commodities trade, oil turned and fell.
US (February) gold futures continued lower.
Iron ore (China port 62% Fe) was pushed sharply higher.
LME copper and aluminium settled modestly lower, but nickel rallied.
The $A appreciated to ~US71.85c after dropping to US71.60c early Friday evening.
Overseas Market Commentary
Major European and US equities markets dropped on opening overnight Friday.
Data releases from China, the euro zone and US disappointed from early Friday, bruising international growth sentiment, and the $US traded at 19-month highs.
In addition, a European Council meeting failed to offer the UK PM European Union (EU)-UK separation plan clarification and assurances, in particular regarding a Republic of Ireland customs border.
Among overnight Friday data releases, initial euro zone December manufacturing and services PMIs each came in at 51.4, following 51.8 and 53.4 respectively in November.
Germany’s readings were reported as 51.5 for manufacturing and 52.5 for the services sector, against respective 51.8 and 53.3 November readings.
Since then, France’s PM has confirmed the national 2019 deficit to GDP ratio will likely fall beyond the 3% European Union cap, at an estimated 3.2%.
In the US, November retail sales were reported 0.2% higher for the month and up 4.2% year-on-year, following 1.1% and 4.8% respectively for October.
Industrial production rose 0.6% for the month and 2% year-on-year, against a 0.2% pullback during October.
Initial December Markit PMI estimates fell 1.4 points to 53.9, and 1.3 points to 53.4, for the manufacturing and services sectors respectively.
Meanwhile, Saudi Arabia was reported to have given Pakistan $US1B in foreign reserves, while Pakistan awaits the outcome for a plea for assistance from the International Monetary Fund (IMF).
While criticising sanctions against Iran, Qatar announced a planned $US20B expansion in US energy sector activity, in particular in LNG production and export infrastructure.
Tonight in the US, a New York region business activity index is due.
Elsewhere, euro zone CPI and trade balance figures could influence some trade, if markedly different from expectations.