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Market Opener – 27 Oct 2017
Local Markets Commentary
The Australian market commences Friday trade ahead of key regional economic indicators, amid another swag of local large-cap AGMs and updates, and on mostly negative key commodities leads.
Regionally today, Japan publishes September CPI 10.30am AEDST.
China is expected to release September industrial profits 12.30pm AEDST.
Locally, the Australian Bureau of Statistics is due to publish September quarter producer prices plus details of FY 2017 national accounts.
The HIA also releases a September new home sales report.
In addition, banking sector results continue, this morning from Macquarie (MQG).
A plethora of September quarter reports is also anticipated, as end-of-month nears.
In overnight commodities trade, US gold futures fell. WTI and Brent crude both rallied. Iron ore (China port, 62% Fe) retreated further, but remained above $US61.0/t. LME copper and nickel continued lower.
Overseas Market Commentary
Major European and US equities markets were pushed and pulled overnight amid a major session for corporate reports, a $US rally, and definitive policy and fiscal activity across major economies.
The European Central Bank (ECB) halved its monthly allocation for bond purchases to €30B, commencing January, but extended the buying until 30 September 2018.
Regional bonds subsequently rallied and the euro slid.
During a post-policy meeting press conference, ECB president Mario Draghi’s comments suggested the move was a measure of confidence, but in an environment requiring careful monitoring.
For his part, earlier in Japan, PM Shinzo Abe promoted general private sector wage increases of up to 3% in support of economic growth.
In the meantime, China was reported to have raised $US2B in a bond sale offering comparatively low rates.
In the US, a bluster of amendment debate headed a House of Representatives vote on a budget plan approved Thursday last week by the US Senate. The plan was viewed as essential to the progress of proposed tax changes. The vote succeeded and further detail on proposed tax legislation is promised for next week.
Among US data releases, the September trade deficit grew 1.3% to$US64.1B.
Wholesale inventories were reported 1% lower.
Weekly new unemployment claims rose 10,000 to 233,000 and the four-week average fell by 9000 to 239,500.
September pending home sales barely moved, following a 2.8% fall for August.
The Kansas City Fed regional manufacturing index rose to 23, a 10-year peak that surprised following forecasts of ~17.
A GfK consumer confidence index for Germany came in at 10.7, against 10.8 last month and expectations of status quo.
Tonight in the US, an initial September quarter GDP estimate is due, together with September pending home sales and a University of Michigan consumer sentiment update.
Air China, Chevron, China Merchants Bank, Colgate-Palmolive, Exxon Mobil, Hyundai Steel, Kia Motors, Komatsu, Merck, Mitsubishi Steel, ResMed, Royal Bank of Scotland (RBS), Sharp, Shire, Volkswagen and Yunnan Copper are among companies scheduled to report earnings later today or tonight. In overnight corporate news, large-caps across most major sectors largely exceeded expectations in reporting results.
The Australian market commences Friday trade ahead of key regional economic indicators, amid another swag of local large-cap AGMs and updates, and on mostly negative key commodities leads.
Regionally today, Japan publishes September CPI 10.30am AEDST.
China is expected to release September industrial profits 12.30pm AEDST.
Locally, the Australian Bureau of Statistics is due to publish September quarter producer prices plus details of FY 2017 national accounts.
The HIA also releases a September new home sales report.
In addition, banking sector results continue, this morning from Macquarie (MQG).
A plethora of September quarter reports is also anticipated, as end-of-month nears.
In overnight commodities trade, US gold futures fell. WTI and Brent crude both rallied. Iron ore (China port, 62% Fe) retreated further, but remained above $US61.0/t. LME copper and nickel continued lower.
Overseas Market Commentary
Major European and US equities markets were pushed and pulled overnight amid a major session for corporate reports, a $US rally, and definitive policy and fiscal activity across major economies.
The European Central Bank (ECB) halved its monthly allocation for bond purchases to €30B, commencing January, but extended the buying until 30 September 2018.
Regional bonds subsequently rallied and the euro slid.
During a post-policy meeting press conference, ECB president Mario Draghi’s comments suggested the move was a measure of confidence, but in an environment requiring careful monitoring.
For his part, earlier in Japan, PM Shinzo Abe promoted general private sector wage increases of up to 3% in support of economic growth.
In the meantime, China was reported to have raised $US2B in a bond sale offering comparatively low rates.
In the US, a bluster of amendment debate headed a House of Representatives vote on a budget plan approved Thursday last week by the US Senate. The plan was viewed as essential to the progress of proposed tax changes. The vote succeeded and further detail on proposed tax legislation is promised for next week.
Among US data releases, the September trade deficit grew 1.3% to$US64.1B.
Wholesale inventories were reported 1% lower.
Weekly new unemployment claims rose 10,000 to 233,000 and the four-week average fell by 9000 to 239,500.
September pending home sales barely moved, following a 2.8% fall for August.
The Kansas City Fed regional manufacturing index rose to 23, a 10-year peak that surprised following forecasts of ~17.
A GfK consumer confidence index for Germany came in at 10.7, against 10.8 last month and expectations of status quo.
Tonight in the US, an initial September quarter GDP estimate is due, together with September pending home sales and a University of Michigan consumer sentiment update.
Air China, Chevron, China Merchants Bank, Colgate-Palmolive, Exxon Mobil, Hyundai Steel, Kia Motors, Komatsu, Merck, Mitsubishi Steel, ResMed, Royal Bank of Scotland (RBS), Sharp, Shire, Volkswagen and Yunnan Copper are among companies scheduled to report earnings later today or tonight. In overnight corporate news, large-caps across most major sectors largely exceeded expectations in reporting results.