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Market Opener – 13 May 2019
Local Markets Commentary
The Australian market commences a new week’s trade with bountiful domestic political talk ahead of Saturday’s national elections, two major domestically-listed banks trading ex-dividend, and new commentary on the state of play between China and the US.
Overnight, China state media has reported China will ‘stick to principle’ but that its door always remains open for trade negotiations with the US, and that China will not back away from a ‘fight’ if this is deemed necessary.
Yesterday, a US Economic adviser offered progress could be made once China demonstrated willingness to legislate for changes previously agreed during talks.
US futures and the $A have each fallen since yesterday.
Among local data releases today, the Australian Bureau of Statistics (ABS) publishes the March Lending to Households and Businesses report, which will reveal housing finance.
Pre-trade, a weekly capital city residential property price report is due.
In addition today, ANZ and MQG each trade ex-dividend. Please see p4 for a detailed list.
Post-ASX trade, Reserve Bank of Australia (RBA) governor Guy Debelle is scheduled to join a panel discussion at the RBA Sydney regarding The End of Libor and the Impact on Australian Financial Markets.
In overnight Friday commodities trade, WTI crude settled slightly lower and Brent a little higher.
US gold futures (June) rose modestly.
Iron ore (China port, 62% Fe) rallied.
LME copper and aluminium settled with a slightly gain. Nickel turned and rallied.
The $A appreciated beyond US70.00c after trading at US69.95c early Friday evening.
Overnight, China state media has reported China will ‘stick to principle’ but that its door always remains open for trade negotiations with the US, and that China will not back away from a ‘fight’ if this is deemed necessary.
Yesterday, a US Economic adviser offered progress could be made once China demonstrated willingness to legislate for changes previously agreed during talks.
US futures and the $A have each fallen since yesterday.
Among local data releases today, the Australian Bureau of Statistics (ABS) publishes the March Lending to Households and Businesses report, which will reveal housing finance.
Pre-trade, a weekly capital city residential property price report is due.
In addition today, ANZ and MQG each trade ex-dividend. Please see p4 for a detailed list.
Post-ASX trade, Reserve Bank of Australia (RBA) governor Guy Debelle is scheduled to join a panel discussion at the RBA Sydney regarding The End of Libor and the Impact on Australian Financial Markets.
In overnight Friday commodities trade, WTI crude settled slightly lower and Brent a little higher.
US gold futures (June) rose modestly.
Iron ore (China port, 62% Fe) rallied.
LME copper and aluminium settled with a slightly gain. Nickel turned and rallied.
The $A appreciated beyond US70.00c after trading at US69.95c early Friday evening.
Overseas Market Commentary
Major European and US equities markets again vacillated intra-session overnight Friday, but US indices recovered definitively from session lows.
At the beginning of Friday, the US had ramped import taxes on $US200B worth of goods from China from 10% to 25%, ahead of continued scheduled discussions in Washington between high-level officials from both China and the US.
Among key data releases, the UK reported 0.5% March quarter GDP growth in a preliminary reading, following a 0.2% December quarter 2018 rise.
Year-on-year, GDP was 1.9% higher.
The higher-than-anticipated figures were attributed to producers stockpiling goods ahead of the initial late-March date nominated for the UK’s planned separation from the European Union (EU).
The March trade deficit came in at £5.41B, against £6.22B at the end of February.
March industrial production rose 0.7% for the month and 1.3% year-on-year, against 0.6% and 0.4% gains for February.
Year-on-year construction output remained flat at 3.2% growth.
Meanwhile in Germany, the March trade surplus was calculated at €22.7B, from €18.0B at the end of February.
Exports improved 1.5% after a February 1.2% fall. Imports rose 0.4% after dropping 1.6%.
In the US, the April CPI rose 0.3% for the month and 2% year-on-year, 0.1% below forecasts.
Tonight in the US, no key economic indicators are due.
Companies expected to report earnings later today or tonight include: Bridgestone, E.On, Isuzu Motors, (The) Japan Steel Works, Kogas, Konica Minolta, Rosneft, Take-Two Interactive Software, Tencent Music Entertainment and Uniden.
In overnight Friday corporate news, Uber debuted on the NYSE, closing more than 7.5% below the company’s IPO price.
Symantec struggled, the CEO needing to resign due to family health reasons and the company sounding a profit warning.
At the beginning of Friday, the US had ramped import taxes on $US200B worth of goods from China from 10% to 25%, ahead of continued scheduled discussions in Washington between high-level officials from both China and the US.
Among key data releases, the UK reported 0.5% March quarter GDP growth in a preliminary reading, following a 0.2% December quarter 2018 rise.
Year-on-year, GDP was 1.9% higher.
The higher-than-anticipated figures were attributed to producers stockpiling goods ahead of the initial late-March date nominated for the UK’s planned separation from the European Union (EU).
The March trade deficit came in at £5.41B, against £6.22B at the end of February.
March industrial production rose 0.7% for the month and 1.3% year-on-year, against 0.6% and 0.4% gains for February.
Year-on-year construction output remained flat at 3.2% growth.
Meanwhile in Germany, the March trade surplus was calculated at €22.7B, from €18.0B at the end of February.
Exports improved 1.5% after a February 1.2% fall. Imports rose 0.4% after dropping 1.6%.
In the US, the April CPI rose 0.3% for the month and 2% year-on-year, 0.1% below forecasts.
Tonight in the US, no key economic indicators are due.
Companies expected to report earnings later today or tonight include: Bridgestone, E.On, Isuzu Motors, (The) Japan Steel Works, Kogas, Konica Minolta, Rosneft, Take-Two Interactive Software, Tencent Music Entertainment and Uniden.
In overnight Friday corporate news, Uber debuted on the NYSE, closing more than 7.5% below the company’s IPO price.
Symantec struggled, the CEO needing to resign due to family health reasons and the company sounding a profit warning.