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Market Opener – 18 Dec 2018

 
Local Markets Commentary
The Australian market opens today’s trade ahead of the release of Reserve Bank of Australia (RBA) policy meeting minutes and a keenly anticipated economic reforms speech by China’s president Xi Jin ping, following no-risk overnight international equities trade. 

A China Communist Party annual economic policy conference commences late week, but ahead of this, China’s president is scheduled to deliver a key address today, commencing ~1pm AEDT today.

Locally pre-trade, a weekly consumer sentiment reading is due. 

The RBA publishes 4 December policy meeting minutes 11.30 am AEDT.

In mixed overnight commodities trade, oil continued to fall.

US (February) gold futures swung higher. 

Iron ore (China port 62% Fe) turned modestly lower.

LME copper settled slightly lower. Aluminium swung higher, and nickel lower.

The $A moved in a relatively narrow range after trading at US71.80c early yesterday evening.

Overseas Market Commentary
Major European and US equities markets opened lower overnight, key US indices settling at or near session lows.

Traders weighed debate regarding this week’s US Federal Reserve’s policy meeting outcomes and outlook commentary, speculation surrounding what China’s reserve bank might further announce, following an early-week ‘rising challenges’ statement, no perceived UK parliamentary progress on any possible resolution of plans for the UK’s withdrawal from the European Union, and some additional disappointing data.

In addition, multiple calls of an extended US ‘bear market’ appeared to unsettle, and prompt some early positioning and safe-haven hedging, ahead of the end-of-year holiday period.

In new data releases, a November CPI reading for the euro zone was finalised as a 0.2% pull back for the month, following a 0.2% October gain.

Year-on-year, CPI growth came in at 1.9%, against 2.2% for October.

The region’s October trade figures included a €14B surplus following €12.8B at the end of October.

In the US, a New York region business activity index plummeted to 10.9 from 23.3. 

A home builders’ sentiment index fell four points to a remaining strong 56. 

Tonight in the US, the US Federal Reserve commences a two-day policy meeting from which outcomes will be known early Thursday AEDT. 

Meanwhile, a midnight Friday deadline approaches for Congress and the US president to agree on funding and avoid a partial government services shutdown form Saturday.

FedEx and Micron Technology are among companies scheduled to report earnings.

Overnight, Oracle reported a little above expectations post-US trade, and could influence some select sentiment tonight.
 
Posted on 18/12/2018 7:00:00 AM

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