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Market Opener – 18 Sep 2018
Local Markets Commentary
The Australian market opens today’s trade with US-China trade moves directly in focus, and a key meeting in North Korea, following broadly negative overnight international equities and commodities trade sentiment.
The $A remained within a relatively narrow range after trading at ~US71.75c early yesterday evening, but has dropped this morning.
The US president has confirmed, post-overnight US equities trade, that new import taxes on ~$US200B worth of Chinese goods will be implemented from Monday next week.
In addition, the president threatened an ‘immediate’ tariffs increase on an additional ~$US267B worth of goods, should China announce retaliatory measures.
In response to some industry concerns, some Apple Inc and Fitbit products, bicycles, vehicle seats for babies and other consumer goods will be exempt from next week’s increased tariffs.
In overnight commodities trade, oil settled just a few cents lower.
US (December) gold futures gained modestly.
LME copper, nickel and aluminium headed lower.
Locally today, the Reserve Bank of Australia (RBA) is scheduled to publish the minutes of its 4 September policy meeting 11.30am AEST.
The Australian Bureau of Statistics (ABS) is expected to report capital city residential property prices for the June quarter at the same time.
A well-followed weekly consumer sentiment reading is due pre-trade.
In addition, NHC, KMD and TPM have reported for the full year this morning.
Regionally, the Bank of Japan commences a monetary policy meeting today, from which an outcomes statement will be released at the conclusion of the meeting tomorrow. No ‘outlook report’ is due following this month’s meeting.
Meanwhile, international geopolitical focus will include the Korean peninsula today, as the leaders of North and South Korea are scheduled to meet in Pyongyang, North Korea.
Overseas Market Commentary
Investor jitters were evident overnight, major European equities markets characterised by significant swings and key US indices closing almost at session lows.
The US president had declared he would make a trade tariffs announcement post-US trade, this impacting large-cap communications services stocks and bruising sentiment for the discretionary consumer buying sector. In addition, an advisor had earlier claimed new import taxes on goods from China were likely to match the $US200B worth previously threatened.
The $US fell and 10-year bond yields climbed above 3.00% again.
Among scant overnight data releases, the US Fed New York region business activity index dropped 6.6 points to 19 following forecasts of a 2.3-point fall.
The euro zone’s final August CPI reading was confirmed at 0.2% growth for the month, following a 0.3% fall in July. Year-on-year the CPI had risen 2.0%.
Tonight in the US, a home builders’ association housing market index is due.
Elsewhere, European Central Bank (ECB) president Mario Draghi is scheduled to speak publicly.
AutoZone, General Mills, Ocado and Spire Healthcare are scheduled to report earnings or provide an update.
The Australian market opens today’s trade with US-China trade moves directly in focus, and a key meeting in North Korea, following broadly negative overnight international equities and commodities trade sentiment.
The $A remained within a relatively narrow range after trading at ~US71.75c early yesterday evening, but has dropped this morning.
The US president has confirmed, post-overnight US equities trade, that new import taxes on ~$US200B worth of Chinese goods will be implemented from Monday next week.
In addition, the president threatened an ‘immediate’ tariffs increase on an additional ~$US267B worth of goods, should China announce retaliatory measures.
In response to some industry concerns, some Apple Inc and Fitbit products, bicycles, vehicle seats for babies and other consumer goods will be exempt from next week’s increased tariffs.
In overnight commodities trade, oil settled just a few cents lower.
US (December) gold futures gained modestly.
LME copper, nickel and aluminium headed lower.
Locally today, the Reserve Bank of Australia (RBA) is scheduled to publish the minutes of its 4 September policy meeting 11.30am AEST.
The Australian Bureau of Statistics (ABS) is expected to report capital city residential property prices for the June quarter at the same time.
A well-followed weekly consumer sentiment reading is due pre-trade.
In addition, NHC, KMD and TPM have reported for the full year this morning.
Regionally, the Bank of Japan commences a monetary policy meeting today, from which an outcomes statement will be released at the conclusion of the meeting tomorrow. No ‘outlook report’ is due following this month’s meeting.
Meanwhile, international geopolitical focus will include the Korean peninsula today, as the leaders of North and South Korea are scheduled to meet in Pyongyang, North Korea.
Overseas Market Commentary
Investor jitters were evident overnight, major European equities markets characterised by significant swings and key US indices closing almost at session lows.
The US president had declared he would make a trade tariffs announcement post-US trade, this impacting large-cap communications services stocks and bruising sentiment for the discretionary consumer buying sector. In addition, an advisor had earlier claimed new import taxes on goods from China were likely to match the $US200B worth previously threatened.
The $US fell and 10-year bond yields climbed above 3.00% again.
Among scant overnight data releases, the US Fed New York region business activity index dropped 6.6 points to 19 following forecasts of a 2.3-point fall.
The euro zone’s final August CPI reading was confirmed at 0.2% growth for the month, following a 0.3% fall in July. Year-on-year the CPI had risen 2.0%.
Tonight in the US, a home builders’ association housing market index is due.
Elsewhere, European Central Bank (ECB) president Mario Draghi is scheduled to speak publicly.
AutoZone, General Mills, Ocado and Spire Healthcare are scheduled to report earnings or provide an update.