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Market Opener –12 Mar 2019

 
Local Markets Commentary
The Australian market commences today’s trade following positive overnight international equities trade and ahead of key domestic reports. 

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

The Australian Bureau of Statistics (ABS) releases January household and business lending figures 11.30am AEDT.

NAB reports the results of its February business survey at the same time.

ASL, NWS, SGM and VLW are among stocks trading ex-dividend today. Please see pp3-4 for details.

In decidedly mixed overnight commodities trade, oil swung higher

US gold futures (April) turned to settle lower.

Iron ore (China port, 62% Fe) extended Friday’s fall.

LME copper turned higher. Nickel continued to drop.

The $A rose to US70.70c after trading at ~US70.50c early yesterday evening.

Overseas Market Commentary
Renewed risk appetite featured across major European and US equities markets overnight, in part spawned by some better-than-feared data releases and upgrades for Apple and Facebook. 

In addition, UK PM Theresa May was reported to be meeting with European Commission leaders, sparking hope that a more palatable UK-European Union separation deal could be delivered to the UK House of Commons tonight, ahead of the session’s a crucial vote.

The British pound gained in association, as much as 1.1% against the $US.

Among overnight data releases, US January retail sales surprised on the upside, rising by 0.2% for the month. Year-on-year sales came in 2.3% higher.

December sales were revised however, from a 1.2% monthly decline to 1.6% drop. 

This pushed the $US slightly lower.

December business inventories were calculated 0.6% higher. 

The president’s proposed $US4.7 trillion 2020 budget called for reduced spending on support for low income, ill and senior US residents, and on foreign aid, and increased funding for military activity and security measures.

Germany’s January trade surplus rose to €14.5B from €14.3B.

Exports came in flat following a 1.5% December increase.

Imports rose 1.5% after 0.7% December gain.

Industrial production fell 0.8% for the month, against a 0.8% December rise.

Tonight in the US, February CPI growth and a small business optimism index are due.

Elsewhere, a swag of influential UK economic indicators, including January GDP, industrial production and trade balance is due.

This, as parliamentarians in the House of Commons vote on plans governing the European Union (EU) separation.

Pending the vote result, another vote may follow this week to delay the withdrawal.

Companies scheduled to report earnings include Dick’s Sporting Goods, Domino’s Pizza Group Plc (full year), FedEx, Minerva, Salvatore Ferragamo, Toho and Volkswagen.

In overnight corporate news, Boeing was propelled lower following the latest 737 Max 8 crash.

Chip manufacturer Nvidia announced a proposed $US6.8B purchase of Israeli chip specialist Mellanox Technologies, prompting greater than 5% gains for each stock.

Oracle suffered from a downgrade based on investment criticism, but Apple was recommended as a ‘buy’ and appreciated more than 3%. Facebook was also upgraded. 

Canadian-headquartered miners Barrick Gold and Newmont Mining announced a JV over Nevada operations, at the same time revealing Barrick would walk from its $US18B hostile bid for Newmont. 

Tesla rose after revealing over the weekend that it would charge 3% higher prices for most vehicles and also keep more stores open than originally announced.
 
Posted on 12/03/2019 7:00:00 AM

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