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Market Opener – 14 Dec 2017

 
Local Markets Commentary
The Australian market commences today’s trade on mixed overnight international trade leads, ahead of significant domestic and regional economic indicators today and further central bank meetings and influential data tonight. 

Locally today, November employment statistics are due 11.30am AEDST. The Melbourne Institute also publishes a monthly inflation expectations report this morning. 

Regionally, China’s November industrial production, fixed asset investment and retail sales are expected 1pm AEDST.

An initial December manufacturing PMI for Japan is scheduled for release 11.30am.

In overnight commodities trade, US gold futures swung higher. Oil settled lower for a second consecutive session.

Iron ore (China port, 62% Fe) continued volatile, turning lower. LME copper rallied. 

The $A appreciated significantly, to ~US76.35c, after falling below ~US75.60c early yesterday evening.

Overseas Market Commentary
Investors across major European and US equities markets were presented with plenty to consider overnight during a mega session for data and events 

In late US trade, reports emerged Senate and House of Representatives Republicans had largely agreed on tax legislation, which some predict could face ultimate votes before Christmas, and secure a presidential signature before year’s end.

The US Federal Reserve’s last policy meeting under chair Janet Yellen raised rates, as widely anticipated, by 0.25% to 1.25% - 1.50%.

The Fed also retained its prediction of another three rises in 2018 and two more likely during 2019, while maintaining a weak inflation view.

Among a batch of influential economic indicator reports, US November CPI rose 0.4% and core CPI (food and energy excluded) just 0.1% for the month. 

Core annual CPI came in at 1.7% against 1.8% in October.

The euro zone’s October industrial production rose 0.2% for the month and 3.7% year-on-year, following a respective -0.6% and 3.3% for September.

Germany’s final November CPI annual growth reading confirmed the earlier 1.8% estimate.

The UK’s average weekly income for the October quarter was reported to have risen to 2.5% year-on-year, from 2.2% for the September quarter. Unemployment claims reportedly jumped in November.

In the meantime, the UK Government was facing a parliamentary vote on how UK-European separation deals would be approved. Post-UK trade, the vote reportedly went against the Government’s plans for ultimate authority.

Tonight in the US, weekly new unemployment claims, November retail sales, import and export price, October business inventories and an initial Markit December PMI are due. 

Elsewhere, the Bank of England and European Central Bank hold policy meetings and hold post-meeting media conferences.

Initial December PMIs are also due for the UK and euro zone and November retail sales for the UK.

In overnight corporate news, Twenty-First Century Fox was reported to be close to a deal to sell off some assets for ~$US40B.
 
Posted on 14/12/2017 7:04:00 AM

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