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Before making any investment decision, you should seek the relevant advice.
Market Opener – 07 Mar 2019
Local Markets Commentary
The Australian market opens today’s trade ahead of further influential domestic data, with a plethora of large-cap stocks trading ex-dividend and following largely negative overnight international equities and commodities trade leads.
Locally today, the Australian Bureau of Statistics (ABS) publishes January trade balance and retail sales 11.30am AEDT.
Pre-trade, AiG releases its February construction sector activity index.
A swag of high-profile stocks trading ex-dividend today includes: ASX, BHP, CTD, ILU, MMS, MND, QBE, RIO, S32, and TWE. Please see p4 for a comprehensive list.
In overnight commodities trade, WTI crude extended Tuesday’s fall. Brent turned to settle slightly higher.
US gold futures (April) turned to close with a gain, after declining for seven consecutive sessions.
LME copper and aluminium headed lower. Nickel also swung, to settle slightly lower.
Iron ore (China port, 62% Fe) rose by just US2c/t.
The $A changed little after trading below US70.30c early yesterday evening.
Overseas Market Commentary
Significant chop and swings featured across major European equities markets overnight. Key US equities indices trended lower from opening.
European banks benefited early from speculation the European Central Bank (ECB) was about to announce the (re)implementation of cheaper lending from as early as tonight.
The US secretary of state appeared to promote caution regarding any near-term trade deal with China, despite having talked about nearing the ‘cusp’. The US president subsequently again asserted negotiations were progressing well. No statements offered detail.
In the meantime, the Organisation for Economic Co-operation and Development (OECD) reduced its 2019 global economic growth forecast by 0.2% to 3.3%.
The OECD cited slowing momentum amid policy confusion, a steep trade growth decline and falling consumer and business confidence.
Germany’s growth prediction was cut by 0.9%.
In overnight US data releases, the December trade deficit was reported to have deteriorated by 18.8%, to $US59.8B.
Exports fell 1.9% to $US205.1B, the least in 10 months. Imports grew 2.1% to $US264.9B.
For 2018, the traded deficit was estimated at $US621.0B from $US552.3B for 2017.
The annual goods trade deficit with China jumped 11.6% to a record $US419.2B.
The Federal Reserve’s region-by-region economic report (beige book) revealed growth in two (of 12) districts had fallen from the usual slight-to-moderate to flat.
International demand remained a concern for manufacturers in general, the Fed concluded.
In the meantime, a private sector employment report estimated 183,000 jobs had been created during February, against 300,000 in January.
Weekly mortgage applications fell by 2.5% following a 5.3% rise the previous week.
Germany’s February construction PMI encouraged, rising four points to 54.7.
Bank of England governor Mark Carney warned in post-Tuesday UK trade of more significant impacts on the European Union (EU), than for British business, should the UK separate from the EU without arrangements in place.
As with Greece earlier this week, another non-major market attracted strong demand with a bond sale, this time Qatar, which received $US50B worth of bids for a $US12B offer.
Tonight in the US, weekly new unemployment claims, December quarter productivity and January consumer credit are due.
Elsewhere, the European Central Bank holds a policy meeting and subsequent press conference.
A final euro zone December quarter GDP reading is also due.
Companies scheduled to report earnings include Axel Springer, Barnes & Noble, Costco Wholesale, Hugo Boss, JC Decaux, digital grocery specialist Kroger, Lafarge Holcim, Linde and Merck.
BHP, Rio Tinto and Standard Chartered trade ex-dividend on the FTSE 100.
In overnight corporate news, Johnson & Johnson revealed US FDA approval to market the first new depression treatment in ~three decades, a highly-priced nasal spray.
Retailers Abercrombie & Fitch and Dollar Tree were pushed respectively 20% and 5% higher after releasing quarterly reports, Dollar Tree also announcing a significant restructure.
The Australian market opens today’s trade ahead of further influential domestic data, with a plethora of large-cap stocks trading ex-dividend and following largely negative overnight international equities and commodities trade leads.
Locally today, the Australian Bureau of Statistics (ABS) publishes January trade balance and retail sales 11.30am AEDT.
Pre-trade, AiG releases its February construction sector activity index.
A swag of high-profile stocks trading ex-dividend today includes: ASX, BHP, CTD, ILU, MMS, MND, QBE, RIO, S32, and TWE. Please see p4 for a comprehensive list.
In overnight commodities trade, WTI crude extended Tuesday’s fall. Brent turned to settle slightly higher.
US gold futures (April) turned to close with a gain, after declining for seven consecutive sessions.
LME copper and aluminium headed lower. Nickel also swung, to settle slightly lower.
Iron ore (China port, 62% Fe) rose by just US2c/t.
The $A changed little after trading below US70.30c early yesterday evening.
Overseas Market Commentary
Significant chop and swings featured across major European equities markets overnight. Key US equities indices trended lower from opening.
European banks benefited early from speculation the European Central Bank (ECB) was about to announce the (re)implementation of cheaper lending from as early as tonight.
The US secretary of state appeared to promote caution regarding any near-term trade deal with China, despite having talked about nearing the ‘cusp’. The US president subsequently again asserted negotiations were progressing well. No statements offered detail.
In the meantime, the Organisation for Economic Co-operation and Development (OECD) reduced its 2019 global economic growth forecast by 0.2% to 3.3%.
The OECD cited slowing momentum amid policy confusion, a steep trade growth decline and falling consumer and business confidence.
Germany’s growth prediction was cut by 0.9%.
In overnight US data releases, the December trade deficit was reported to have deteriorated by 18.8%, to $US59.8B.
Exports fell 1.9% to $US205.1B, the least in 10 months. Imports grew 2.1% to $US264.9B.
For 2018, the traded deficit was estimated at $US621.0B from $US552.3B for 2017.
The annual goods trade deficit with China jumped 11.6% to a record $US419.2B.
The Federal Reserve’s region-by-region economic report (beige book) revealed growth in two (of 12) districts had fallen from the usual slight-to-moderate to flat.
International demand remained a concern for manufacturers in general, the Fed concluded.
In the meantime, a private sector employment report estimated 183,000 jobs had been created during February, against 300,000 in January.
Weekly mortgage applications fell by 2.5% following a 5.3% rise the previous week.
Germany’s February construction PMI encouraged, rising four points to 54.7.
Bank of England governor Mark Carney warned in post-Tuesday UK trade of more significant impacts on the European Union (EU), than for British business, should the UK separate from the EU without arrangements in place.
As with Greece earlier this week, another non-major market attracted strong demand with a bond sale, this time Qatar, which received $US50B worth of bids for a $US12B offer.
Tonight in the US, weekly new unemployment claims, December quarter productivity and January consumer credit are due.
Elsewhere, the European Central Bank holds a policy meeting and subsequent press conference.
A final euro zone December quarter GDP reading is also due.
Companies scheduled to report earnings include Axel Springer, Barnes & Noble, Costco Wholesale, Hugo Boss, JC Decaux, digital grocery specialist Kroger, Lafarge Holcim, Linde and Merck.
BHP, Rio Tinto and Standard Chartered trade ex-dividend on the FTSE 100.
In overnight corporate news, Johnson & Johnson revealed US FDA approval to market the first new depression treatment in ~three decades, a highly-priced nasal spray.
Retailers Abercrombie & Fitch and Dollar Tree were pushed respectively 20% and 5% higher after releasing quarterly reports, Dollar Tree also announcing a significant restructure.