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Market Opener – 25 Feb 2019
Local Markets Commentary
The Australian market opens a new week’s trade with China-US trade talks reported to have continued through the weekend and with relatively positive overnight Friday international equities and key commodities trade leads.
Locally today, a weekly property price report is due pre-trade.
In addition, several large-cap domestic stocks report earnings.
Stocks trading ex-dividend include BRG and WHC. Please see pp4-5 for details.
Regionally, some US-China trade talk commentary and/ or details of any weekend progress is anticipated out of China.
In overnight Friday commodities trade, oil settled higher.
US gold futures (April) seesawed to close modestly higher.
Iron ore (China port, 62% Fe) slipped a few cents.
LME copper and nickel swung higher and rallied.
The $A approached US71.30c after appreciating to US71.15c early Friday evening.
Overseas Market Commentary
Major European and US equities markets headed higher from opening or early trade overnight Friday amid concerning data releases and a US Federal Reserve economic policy forum.
The week’s US-China trade talks in Washington were assumed to have concluded, but with no definitive statements from either side, and the US administration instead promoting this week’s Hanoi, Vietnam meeting between the US president and North Korea’s leader Kim Jong Un.
No confirmation came within US trade of a touted meeting between China vice PM Liu He and US president Donald Trump.
A final January euro zone CPI estimate was reported as 1% deflation for the month and a 1.1% rise year-on-year.
Germany’s final December quarter GDP reading came in flat for the quarter, following a 0.2% September quarter pullback.
Year-on-year, GDP had grown 0.6%, against 1.1% for the December quarter 2017.
Meanwhile, a business climate index fell by 0.8 to 98.4.
Tonight in the US, the Chicago Fed national activity index, a Texas region manufacturing index and wholesale inventories are expected.
In the UK, parliament is expected to react to the PM’s weekend push to delay a final vote on European Union separation plans until 12 March.
Debate had been scheduled for mid-week ahead of another anticipated vote later this week.
Overnight Friday, a public speech by European Central Bank president Mario Draghi appeared to indicate central bank frustration with the process.
Companies scheduled to report earnings or updates later today or tonight include Associated British Foods and Daewoo Shipbuilding.
In overnight Friday corporate news, Kraft Heinz dropped more than 25% after revealing post-Thursday trade that it had received a (US) SEC subpoena last October regarding accounting policies, and that the company had suffered a $US15.4B impairment.
Sales for 2018 were also essentially flat, contributing to a $US10.2B full year loss, but the company also cited increased logistics and manufacturing costs.
Saturday (US time), Berkshire Hathaway’s newsletter revealed the group’s investment in Kraft Heinz had damaged last year’s results.
During Friday trade, Newmont Mining benefited from reports Barrick Gold was considering lodging an ~$US20B bid.
Earlier Friday, China search engine operator Baidu announced quarterly earnings and guidance that respectively exceeded and matched expectations, but was pushed ~2.5% lower in US trade.
The Australian market opens a new week’s trade with China-US trade talks reported to have continued through the weekend and with relatively positive overnight Friday international equities and key commodities trade leads.
Locally today, a weekly property price report is due pre-trade.
In addition, several large-cap domestic stocks report earnings.
Stocks trading ex-dividend include BRG and WHC. Please see pp4-5 for details.
Regionally, some US-China trade talk commentary and/ or details of any weekend progress is anticipated out of China.
In overnight Friday commodities trade, oil settled higher.
US gold futures (April) seesawed to close modestly higher.
Iron ore (China port, 62% Fe) slipped a few cents.
LME copper and nickel swung higher and rallied.
The $A approached US71.30c after appreciating to US71.15c early Friday evening.
Overseas Market Commentary
Major European and US equities markets headed higher from opening or early trade overnight Friday amid concerning data releases and a US Federal Reserve economic policy forum.
The week’s US-China trade talks in Washington were assumed to have concluded, but with no definitive statements from either side, and the US administration instead promoting this week’s Hanoi, Vietnam meeting between the US president and North Korea’s leader Kim Jong Un.
No confirmation came within US trade of a touted meeting between China vice PM Liu He and US president Donald Trump.
A final January euro zone CPI estimate was reported as 1% deflation for the month and a 1.1% rise year-on-year.
Germany’s final December quarter GDP reading came in flat for the quarter, following a 0.2% September quarter pullback.
Year-on-year, GDP had grown 0.6%, against 1.1% for the December quarter 2017.
Meanwhile, a business climate index fell by 0.8 to 98.4.
Tonight in the US, the Chicago Fed national activity index, a Texas region manufacturing index and wholesale inventories are expected.
In the UK, parliament is expected to react to the PM’s weekend push to delay a final vote on European Union separation plans until 12 March.
Debate had been scheduled for mid-week ahead of another anticipated vote later this week.
Overnight Friday, a public speech by European Central Bank president Mario Draghi appeared to indicate central bank frustration with the process.
Companies scheduled to report earnings or updates later today or tonight include Associated British Foods and Daewoo Shipbuilding.
In overnight Friday corporate news, Kraft Heinz dropped more than 25% after revealing post-Thursday trade that it had received a (US) SEC subpoena last October regarding accounting policies, and that the company had suffered a $US15.4B impairment.
Sales for 2018 were also essentially flat, contributing to a $US10.2B full year loss, but the company also cited increased logistics and manufacturing costs.
Saturday (US time), Berkshire Hathaway’s newsletter revealed the group’s investment in Kraft Heinz had damaged last year’s results.
During Friday trade, Newmont Mining benefited from reports Barrick Gold was considering lodging an ~$US20B bid.
Earlier Friday, China search engine operator Baidu announced quarterly earnings and guidance that respectively exceeded and matched expectations, but was pushed ~2.5% lower in US trade.