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Market Opener – 09 Jan 2019
Local Markets Commentary
The Australian market opens mid-week trade ahead of a national address by the US president, with key new domestic data, and US-China trade talks in Beijing extended to a third day today, following positive overnight US equities sentiment.
The US president’s national address is due to commence ~1pm AEDT in Washington, ahead of a visit to the Mexico-US border wall site now scheduled for Thursday.
In overnight commodities trade, oil and iron ore (China port 62% Fe fines) rallied further.
US (February) gold futures fell modestly.
LME copper headed lower. Aluminium swung so. Nickel posted a slight gain.
The $A recovered to ~US71.40c after trading at US71.25c early yesterday evening.
Locally this morning, AiG has reported a 52.1 December services activity index, against November’s 55.1. November’s reading had represented a four-point increase.
November building approvals are anticipated 11.30am AEDT.
Meanwhile, Australia’s iron ore shipments for the week ending 6 January were reported at 16.68Mt, 3.1% lower than for the previous week. Australia-China shipments fell 4.9% to 13.95Mt. Total iron ore shipped from Australia and Brazil reportedly dropped 9.3% for the week.
Overseas Market Commentary
Major European and US equities markets opened higher but mostly declined some before choppy recoveries. Notably, the S&P 500 traded at a three-week peak intra-session.
Among geopolitical and international trade considerations, North Korea president Kim Jong Un reportedly visited China yesterday for discussions with China president Xi Jinping.
The news came before both China and the US confirmed the extension of trade talks in Beijing into a third day today. Earlier, China approved imports of five GM crops from the US.
Overnight in the meantime, a new round of European Union (EU) - US trade talks commenced, in Washington.
In the UK, a parliamentary vote (303 – 296) paved the way for parliamentarians to be given the opportunity to approve any ultimate move to separate from the EU with no firm agreement in place.
Legislation remains in place for the UK to withdraw from the EU 29 March. However, EU officials were reported to be ready to consider a delay of up to one year.
The $US turned higher, after pulling back over three sessions. Oil continued to gain, supporting energy stocks, China developments also bolstering select tech and industrial sector sentiment.
In overnight US data releases, a November job openings report reported 243,000 fewer opportunities. The employment resignation rate remained at 2.3%.
A December small business optimism index also included 39% of survey participants reporting difficulty filling all available positions, in particular in the manufacturing sector.
November trade statistics, scheduled for release overnight, were pushed back, due to the US government services partial shutdown.
Germany’s November industrial production disappointed, as did factory orders overnight Monday. Industrial output dropped 1.9% for the month after falling 0.9% in October.
Meanwhile, France’s November trade deficit was reported as €5.1B, from €4.1B at the end of October.
In the UK, parliament debated budget plans designed to account for withdrawal from the European Union (EU) with no firm agreement in place.
Tonight in the US, Federal Reserve December policy meeting minutes are keenly anticipated. Weekly mortgage applications are also due.
In the UK, Bank of England governor Mark Carney is scheduled to speak publicly.
The UK parliament also formally recommences debate regarding the planned agreement for separating from the EU.
Constellation Brands and UK supermarket chain Sainsbury’s are among companies scheduled to report earnings or provide trading updates.
In overnight corporate news, UK supermarket chain WM Morrison (Morrison’s) undershot festive season sales expectations, and was pushed ~3% lower.
A Samsung December quarter profit warning also fell short of forecasts.
The Australian market opens mid-week trade ahead of a national address by the US president, with key new domestic data, and US-China trade talks in Beijing extended to a third day today, following positive overnight US equities sentiment.
The US president’s national address is due to commence ~1pm AEDT in Washington, ahead of a visit to the Mexico-US border wall site now scheduled for Thursday.
In overnight commodities trade, oil and iron ore (China port 62% Fe fines) rallied further.
US (February) gold futures fell modestly.
LME copper headed lower. Aluminium swung so. Nickel posted a slight gain.
The $A recovered to ~US71.40c after trading at US71.25c early yesterday evening.
Locally this morning, AiG has reported a 52.1 December services activity index, against November’s 55.1. November’s reading had represented a four-point increase.
November building approvals are anticipated 11.30am AEDT.
Meanwhile, Australia’s iron ore shipments for the week ending 6 January were reported at 16.68Mt, 3.1% lower than for the previous week. Australia-China shipments fell 4.9% to 13.95Mt. Total iron ore shipped from Australia and Brazil reportedly dropped 9.3% for the week.
Overseas Market Commentary
Major European and US equities markets opened higher but mostly declined some before choppy recoveries. Notably, the S&P 500 traded at a three-week peak intra-session.
Among geopolitical and international trade considerations, North Korea president Kim Jong Un reportedly visited China yesterday for discussions with China president Xi Jinping.
The news came before both China and the US confirmed the extension of trade talks in Beijing into a third day today. Earlier, China approved imports of five GM crops from the US.
Overnight in the meantime, a new round of European Union (EU) - US trade talks commenced, in Washington.
In the UK, a parliamentary vote (303 – 296) paved the way for parliamentarians to be given the opportunity to approve any ultimate move to separate from the EU with no firm agreement in place.
Legislation remains in place for the UK to withdraw from the EU 29 March. However, EU officials were reported to be ready to consider a delay of up to one year.
The $US turned higher, after pulling back over three sessions. Oil continued to gain, supporting energy stocks, China developments also bolstering select tech and industrial sector sentiment.
In overnight US data releases, a November job openings report reported 243,000 fewer opportunities. The employment resignation rate remained at 2.3%.
A December small business optimism index also included 39% of survey participants reporting difficulty filling all available positions, in particular in the manufacturing sector.
November trade statistics, scheduled for release overnight, were pushed back, due to the US government services partial shutdown.
Germany’s November industrial production disappointed, as did factory orders overnight Monday. Industrial output dropped 1.9% for the month after falling 0.9% in October.
Meanwhile, France’s November trade deficit was reported as €5.1B, from €4.1B at the end of October.
In the UK, parliament debated budget plans designed to account for withdrawal from the European Union (EU) with no firm agreement in place.
Tonight in the US, Federal Reserve December policy meeting minutes are keenly anticipated. Weekly mortgage applications are also due.
In the UK, Bank of England governor Mark Carney is scheduled to speak publicly.
The UK parliament also formally recommences debate regarding the planned agreement for separating from the EU.
Constellation Brands and UK supermarket chain Sainsbury’s are among companies scheduled to report earnings or provide trading updates.
In overnight corporate news, UK supermarket chain WM Morrison (Morrison’s) undershot festive season sales expectations, and was pushed ~3% lower.
A Samsung December quarter profit warning also fell short of forecasts.