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Market Opener – 03 Nov 2017
Local Markets Commentary
The Australian market opens Friday trade on mostly lacklustre commodities and mixed equities leads, ahead of final October PMIs for China.
In overnight commodities trade, gold futures settled with a slight gain. Oil turned a little higher. LME copper settled effectively flat. Nickel fell.
The $A effectively trod water after appreciating to US77.15c early yesterday evening.
Locally today, the Australian Bureau of Statistics (ABS) is due to publish September and September quarter retail sales figures 11.30am AEDST.
Pre-trade, AiG releases its October services sector activity index.
A September quarter skilled vacancies report and October vehicles sales are also expected today.
Regionally today, Caxin is due to release its October services and composite PMIs for China 12.45pm AEDST.
Japan’s markets will not trade today due to a public holiday.
Overseas Market Commentary
Major European and US overnight equities markets trade was again beholden to central bank considerations and mixed corporate results and data releases.
In the UK, the Bank of England raised its key lending rate for the first time since July 2007, by 0.25% to 0.50%, and suggested perhaps two further rises over the next three years.
The bank’s forecasts included an ~1% fall in CPI growth to 2%, after 3+% for October, and 1.7% medium-term GDP growth.
The British pound and bond yields subsequently dropped.
The US Federal Reserve will have a new chairman when Janet Yellen’s term expires early February, after US president Donald Trump nominated one of the central bank’s governors, Jay Powell, to fill the position.
Mr Powell’s nomination is expected to be confirmed by a Republican-led Senate.
In the mean time, House of Representatives Republicans released a detailed proposal for new tax legislation.
In data releases, Germany’s final October manufacturing PMI came in at 60.6, the same as for for September, and the euro zone’s at 58.5, against 58.1. German bond yields rose.
The UK’s construction PMI rose 2.7 points to an expansion-mode 50.8.
Meanwhile in Spain, former government ministers in Catalonia were detained ahead of possible sedition charges.
Tonight in the US, the October employment report is keenly anticipated. ISM’s October services sector activity index is also due, together with September trade figures, factory orders and Markit’s final October PMIs.
Berkshire Hathaway is among companies scheduled to report earnings tonight.
In overnight corporate news, Credit Suisse was one of the early reporters, with a 90% increase in pre-tax adjusted income from a year ago amid a restructure which includes expanding business in Asia.
Royal Dutch Shell’s quarterly profit rose 47% for the year, to $US4.1B.
In the telecommunications sector, BT revealed 4% lower, £1.8B profit and 2% lower, £6B revenue.
DowDupont announced jobs would go as it targeted $US3B worth of savings.
Apple’s results, which exceeded expectations, are expected to influence tonight’s trade, as when reported post-US trade, post-settlement trade pushed the company’s market cap past $US900B.
The Australian market opens Friday trade on mostly lacklustre commodities and mixed equities leads, ahead of final October PMIs for China.
In overnight commodities trade, gold futures settled with a slight gain. Oil turned a little higher. LME copper settled effectively flat. Nickel fell.
The $A effectively trod water after appreciating to US77.15c early yesterday evening.
Locally today, the Australian Bureau of Statistics (ABS) is due to publish September and September quarter retail sales figures 11.30am AEDST.
Pre-trade, AiG releases its October services sector activity index.
A September quarter skilled vacancies report and October vehicles sales are also expected today.
Regionally today, Caxin is due to release its October services and composite PMIs for China 12.45pm AEDST.
Japan’s markets will not trade today due to a public holiday.
Overseas Market Commentary
Major European and US overnight equities markets trade was again beholden to central bank considerations and mixed corporate results and data releases.
In the UK, the Bank of England raised its key lending rate for the first time since July 2007, by 0.25% to 0.50%, and suggested perhaps two further rises over the next three years.
The bank’s forecasts included an ~1% fall in CPI growth to 2%, after 3+% for October, and 1.7% medium-term GDP growth.
The British pound and bond yields subsequently dropped.
The US Federal Reserve will have a new chairman when Janet Yellen’s term expires early February, after US president Donald Trump nominated one of the central bank’s governors, Jay Powell, to fill the position.
Mr Powell’s nomination is expected to be confirmed by a Republican-led Senate.
In the mean time, House of Representatives Republicans released a detailed proposal for new tax legislation.
In data releases, Germany’s final October manufacturing PMI came in at 60.6, the same as for for September, and the euro zone’s at 58.5, against 58.1. German bond yields rose.
The UK’s construction PMI rose 2.7 points to an expansion-mode 50.8.
Meanwhile in Spain, former government ministers in Catalonia were detained ahead of possible sedition charges.
Tonight in the US, the October employment report is keenly anticipated. ISM’s October services sector activity index is also due, together with September trade figures, factory orders and Markit’s final October PMIs.
Berkshire Hathaway is among companies scheduled to report earnings tonight.
In overnight corporate news, Credit Suisse was one of the early reporters, with a 90% increase in pre-tax adjusted income from a year ago amid a restructure which includes expanding business in Asia.
Royal Dutch Shell’s quarterly profit rose 47% for the year, to $US4.1B.
In the telecommunications sector, BT revealed 4% lower, £1.8B profit and 2% lower, £6B revenue.
DowDupont announced jobs would go as it targeted $US3B worth of savings.
Apple’s results, which exceeded expectations, are expected to influence tonight’s trade, as when reported post-US trade, post-settlement trade pushed the company’s market cap past $US900B.