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Market Opener – 24 Jul 2018
Local Markets Commentary
The Australian market commences today’s trade on generally weak overnight international trade leads, and with plenty of domestic quarterly corporate reports and earnings updates to consider.
In overnight commodities trade, WTI crude and US gold futures turned lower. Brent crude settled barely changed.
Iron ore (China port, 62% Fe) swung higher.
LME copper and nickel were pushed lower. Aluminium extended Friday’s rally.
The $A traded sub-US73.85c after falling to ~US74.0c early yesterday evening.
Locally today, a weekly consumer sentiment reading is due pre-trade.
Regionally, Japan’s initial July manufacturing PMI is expected at 10.30am AEST.
Overseas Market Commentary
Choppy trade featured across most major European and US equities markets overnights, the NASDAQ the exception and the S&P 500 soon settling.
Bond prices fell in the US, Europe and Japan, and a few large-cap stocks reported ahead of a week featuring high-profile stock reports across the US, Europe and Asia.
Earlier, the yen had appreciated against the $US, on expectations of a possible monetary policy adjustment, as early as next week’s Bank of Japan policy meeting.
In overnight data releases, US June existing home sales fell 0.6%, the third consecutive monthly decline. For the year to 30 June, sales were down 2.2%, on a cocktail of higher prices and rates, and reduced supply.
A 0.43 June Chicago Fed National Activity Index well exceeded expectations after falling to -0.45 in May.
A euro zone consumer confidence reading remained flat for the month, at -0.6.
Tonight in the US, Markit’s initial July manufacturing and services PMIs, a regional manufacturing index and May house price index are due.
Companies due to report earnings later today or tonight or provide an update include 3M, AT&T, Hochtief, Kimberly Clark, Lockheed Martin, Mitsubishi Motors, PZ Cussons, Texas Instruments, UBS, United Technologies and Verizon.
In overnight corporate news, toy and game manufacturer Hasbro was pushed 13% higher on quarterly sales, profit and outlook that soundly surpassed expectations.
Likewise Alphabet surprised on the upside, but the figures were reported post-US trade, so these are expected to influence at least some of tonight’s early sentiment. Overnight, the stock rose ~1%, ahead of the report.
Halliburton suffered an 8% decline, even though the group delivered on its forecasts.
Tesla was again punished, this time on reports it had requested suppliers refund to Tesla some payments.
Health and health insurance were in focus, with an agreement for Apollo Global Management’s RCCH HealthCare Partners to acquire LifePoint Health for $US5.6B
France’s Atos SE in the meantime sealed a deal to pay $3.4B for Syntel.
The Australian market commences today’s trade on generally weak overnight international trade leads, and with plenty of domestic quarterly corporate reports and earnings updates to consider.
In overnight commodities trade, WTI crude and US gold futures turned lower. Brent crude settled barely changed.
Iron ore (China port, 62% Fe) swung higher.
LME copper and nickel were pushed lower. Aluminium extended Friday’s rally.
The $A traded sub-US73.85c after falling to ~US74.0c early yesterday evening.
Locally today, a weekly consumer sentiment reading is due pre-trade.
Regionally, Japan’s initial July manufacturing PMI is expected at 10.30am AEST.
Overseas Market Commentary
Choppy trade featured across most major European and US equities markets overnights, the NASDAQ the exception and the S&P 500 soon settling.
Bond prices fell in the US, Europe and Japan, and a few large-cap stocks reported ahead of a week featuring high-profile stock reports across the US, Europe and Asia.
Earlier, the yen had appreciated against the $US, on expectations of a possible monetary policy adjustment, as early as next week’s Bank of Japan policy meeting.
In overnight data releases, US June existing home sales fell 0.6%, the third consecutive monthly decline. For the year to 30 June, sales were down 2.2%, on a cocktail of higher prices and rates, and reduced supply.
A 0.43 June Chicago Fed National Activity Index well exceeded expectations after falling to -0.45 in May.
A euro zone consumer confidence reading remained flat for the month, at -0.6.
Tonight in the US, Markit’s initial July manufacturing and services PMIs, a regional manufacturing index and May house price index are due.
Companies due to report earnings later today or tonight or provide an update include 3M, AT&T, Hochtief, Kimberly Clark, Lockheed Martin, Mitsubishi Motors, PZ Cussons, Texas Instruments, UBS, United Technologies and Verizon.
In overnight corporate news, toy and game manufacturer Hasbro was pushed 13% higher on quarterly sales, profit and outlook that soundly surpassed expectations.
Likewise Alphabet surprised on the upside, but the figures were reported post-US trade, so these are expected to influence at least some of tonight’s early sentiment. Overnight, the stock rose ~1%, ahead of the report.
Halliburton suffered an 8% decline, even though the group delivered on its forecasts.
Tesla was again punished, this time on reports it had requested suppliers refund to Tesla some payments.
Health and health insurance were in focus, with an agreement for Apollo Global Management’s RCCH HealthCare Partners to acquire LifePoint Health for $US5.6B
France’s Atos SE in the meantime sealed a deal to pay $3.4B for Syntel.