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Before making any investment decision, you should seek the relevant advice.
Market Opener – 15 Nov 2018
Local Markets Commentary
The Australian market commences today’s trade at the same time as US Federal Reserve chair Jerome Powell is scheduled to speak publicly on economic influences.
Overnight equities leads are unsupportive amid ongoing geopolitical uncertainties and following an international data dump yesterday and last night.
In overnight commodities trade, oil and US (December) gold futures swung higher.
Iron ore (China port 62% Fe) turned slightly higher.
LME copper continued modestly higher, and aluminium turned so. Nickel extended this week’s decline.
The $A appreciated to ~US72.20c after falling to ~US71.90c early yesterday evening.
Locally today, October employment statistics are due 11.30am AEDT.
Also today, Reserve Bank of Australia (RBA) deputy governor Guy Debelle addresses the topic of Assessing the Effects of Housing Lending Policy Measures as a panel member at a FINSIA ‘The Regulators’ event, 1pm AEDT.
An inflation expectations report is also expected from the Melbourne Institute today.
In addition, another swag of high-profile domestic stocks hosts AGMs today. Please see pp2-3 for details.
Overseas Market Commentary
US equities markets soon trended lower overnight, following initial gains, only to head higher two hours before close, and then reverse direction again in the last hour of trade.
Major European indices also swung notably, as investors considered several key economic indicators and material geopolitical developments from both sides of the Atlantic.
The UK cabinet approved a draft plan governing the UK-European Union (EU) separation, albeit reportedly not without significant division.
The UK parliament and each EU parliament must also grant approvals before any deal is finalised.
An EU leaders’ summit is expected within two weeks, amid a busy calendar which includes the G20 leaders’ meeting in Argentina.
Italy retained its initial budget plans, again offering projected GDP and debt statistics for the next several years, defying European Commission pressure to conform to regional regulatory requirements.
Earlier yesterday, Japan and China had published a series of mixed key data.
Among a plethora of influential overnight data releases, US October CPI growth was calculated, in line with forecasts, at 0.3% for the month, and 2.5% year-on-year, against 0.2% and 2.3% respectively during September.
The new figures, supported by a petrol price bounce, supported views the Federal Reserve would raise interest rates a further 0.25% at next month’s policy meeting, and hence pushed the $US higher.
The $US rise came after the previous session’s oil price plummet had supported emerging market currencies, and following earlier overnight gains for the euro and British pound.
In the UK, October CPI rose 0.1% for the month and 2.4% year-on-year, the same rates recorded for September.
Producer prices rose 0.3% and 3.3% respectively, against 0.4% and 3.1% in September.
A revised euro zone September quarter GDP reading was reported as 0.2% growth for the three months, and 1.7% year-on-year.
For the June quarter, GDP had grown 0.4% and 2.2% respectively.
September industrial output fell 0.3% for the month, producing a 0.9% year-on-year gain. During August, industrial production grew 1.1% for both the month and year-on-year.
Germany’s initial September quarter GDP figure was estimated as a 0.2% pullback, following 0.5% June quarter growth.
Year-on-year, GDP grew 1.1%, against 2% for the June quarter.
Economists cited vehicle production regulations, in particular governing emissions, as a contributing factor to the softer numbers.
National industry group BDI in the meantime reduced its 2018 domestic export growth prediction for the second consecutive month, this time from 3.5% to 3.0%.
Tonight in the US, October retail sales, import and export prices, September business inventories and two regional manufacturing business activity indices are due.
In addition, Federal Reserve chair Jerome Powell is due to speak publicly just as the ASX commences tomorrow’s trade.
Nordstrom, NVIDIA, Tullow Oil and Walmart are among companies scheduled to report earnings or provide updates.
GlaxoSmithKline, J Sainsbury (supermarket chain), Marks & Spencer and Shell trade ex-dividend on the FTSE 100.
Cisco Systems has reported post-US trade this morning, predicting 5% - 7% December quarter year-on-year revenue growth. The guidance could impact some sentiment tonight.
The Australian market commences today’s trade at the same time as US Federal Reserve chair Jerome Powell is scheduled to speak publicly on economic influences.
Overnight equities leads are unsupportive amid ongoing geopolitical uncertainties and following an international data dump yesterday and last night.
In overnight commodities trade, oil and US (December) gold futures swung higher.
Iron ore (China port 62% Fe) turned slightly higher.
LME copper continued modestly higher, and aluminium turned so. Nickel extended this week’s decline.
The $A appreciated to ~US72.20c after falling to ~US71.90c early yesterday evening.
Locally today, October employment statistics are due 11.30am AEDT.
Also today, Reserve Bank of Australia (RBA) deputy governor Guy Debelle addresses the topic of Assessing the Effects of Housing Lending Policy Measures as a panel member at a FINSIA ‘The Regulators’ event, 1pm AEDT.
An inflation expectations report is also expected from the Melbourne Institute today.
In addition, another swag of high-profile domestic stocks hosts AGMs today. Please see pp2-3 for details.
Overseas Market Commentary
US equities markets soon trended lower overnight, following initial gains, only to head higher two hours before close, and then reverse direction again in the last hour of trade.
Major European indices also swung notably, as investors considered several key economic indicators and material geopolitical developments from both sides of the Atlantic.
The UK cabinet approved a draft plan governing the UK-European Union (EU) separation, albeit reportedly not without significant division.
The UK parliament and each EU parliament must also grant approvals before any deal is finalised.
An EU leaders’ summit is expected within two weeks, amid a busy calendar which includes the G20 leaders’ meeting in Argentina.
Italy retained its initial budget plans, again offering projected GDP and debt statistics for the next several years, defying European Commission pressure to conform to regional regulatory requirements.
Earlier yesterday, Japan and China had published a series of mixed key data.
Among a plethora of influential overnight data releases, US October CPI growth was calculated, in line with forecasts, at 0.3% for the month, and 2.5% year-on-year, against 0.2% and 2.3% respectively during September.
The new figures, supported by a petrol price bounce, supported views the Federal Reserve would raise interest rates a further 0.25% at next month’s policy meeting, and hence pushed the $US higher.
The $US rise came after the previous session’s oil price plummet had supported emerging market currencies, and following earlier overnight gains for the euro and British pound.
In the UK, October CPI rose 0.1% for the month and 2.4% year-on-year, the same rates recorded for September.
Producer prices rose 0.3% and 3.3% respectively, against 0.4% and 3.1% in September.
A revised euro zone September quarter GDP reading was reported as 0.2% growth for the three months, and 1.7% year-on-year.
For the June quarter, GDP had grown 0.4% and 2.2% respectively.
September industrial output fell 0.3% for the month, producing a 0.9% year-on-year gain. During August, industrial production grew 1.1% for both the month and year-on-year.
Germany’s initial September quarter GDP figure was estimated as a 0.2% pullback, following 0.5% June quarter growth.
Year-on-year, GDP grew 1.1%, against 2% for the June quarter.
Economists cited vehicle production regulations, in particular governing emissions, as a contributing factor to the softer numbers.
National industry group BDI in the meantime reduced its 2018 domestic export growth prediction for the second consecutive month, this time from 3.5% to 3.0%.
Tonight in the US, October retail sales, import and export prices, September business inventories and two regional manufacturing business activity indices are due.
In addition, Federal Reserve chair Jerome Powell is due to speak publicly just as the ASX commences tomorrow’s trade.
Nordstrom, NVIDIA, Tullow Oil and Walmart are among companies scheduled to report earnings or provide updates.
GlaxoSmithKline, J Sainsbury (supermarket chain), Marks & Spencer and Shell trade ex-dividend on the FTSE 100.
Cisco Systems has reported post-US trade this morning, predicting 5% - 7% December quarter year-on-year revenue growth. The guidance could impact some sentiment tonight.