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Market Opener – 09 May 2018
Local Markets Commentary
The Australian market commences mid-week trade amid a plethora of national budget commentary and interpretations of implications of the overnight (4am AEST) announcement by the US to withdraw from the 2015 international nuclear agreement which had lifted sanctions against Iran.
In overnight commodities trade, US gold futures closed essentially flat.
Oil settled lower.
Iron ore (China port, 62% Fe) swung lower.
LME copper and nickel fell.
The $A again traded in a relatively constrained range after dropping below US74.60c early yesterday evening.
Locally today, Westpac and the Melbourne Institute publish their monthly consumer confidence report, 10.30am AEST.
Overseas Market Commentary
Choppy trade featured across major European and US equities markets during the wait for the US president’s declaration of his position on the 2015 Iran agreement, retreating oil prices punctuated by a spattering of large corporate deal news.
Indices dropped when Mr Trump announced the US would pull out of the deal and reimpose sanctions, but soon recovered that loss.
France, Germany and the UK quickly vowed to remain with the principles of the agreement, underscoring heightened tensions, not the least on angst at new risk across already unstable Middle East scenarios.
No early decisive statements came from fellow signatories China and Russia.
Israel lauded the US decision and highlighted military activity initiated by Israel yesterday in association with Iran’s presence in Syria.
Among earlier data releases, Germany’s trade surplus grew by €2.6B during March to €22.0B. Exports rose 1.7%. Imports fell 0.9%.
March industrial production rose 1% for the month following a 1.7% fall in February.
In the US, a March job openings tally came in at 6.55M following 6.05M for February, boosted in part by a 100,000 increase in resignations to 3.3M.
A general business optimism index was estimated at 104.8, from 104.7.
Meanwhile, Argentina revealed it was seeking a line of credit from the International Monetary Fund (IMF), after last week’s lending rate bump to 40% failed to stop the peso (Argentine currency) from sliding against the $US.
Tonight in the US, April producer prices and March wholesale inventories are due, together with weekly mortgage applications.
Primary elections in four States will also attract attention.
A-B InBev, Daikin, G4S, Mitsubishi Motors, Mitsui Mining & Smelting, Office Depot, Siemens, Softbank, Toshiba Tec, Toyota and Twenty-First Century Fox are among companies scheduled to report earnings or provide updates today and tonight.
In overnight corporate news, Vodafone was reported to have almost sealed an €18B cash deal to purchase eastern and western European cable assets from Liberty Global.
Earlier, shareholders of Ireland’s Shire approved a £46B improved offer from Japan’s Takeda Pharmaceutical.
Meanwhile, Valeant Pharmaceuticals delivered market-beating quarterly revenue and full guidance and was pushed more than 8.5% higher.
Comcast fell 5.5% on reports of seeking up to $US60B in an effort to scuttle the proposed partial 21st Century Fox – Walt Disney deal.
The Australian market commences mid-week trade amid a plethora of national budget commentary and interpretations of implications of the overnight (4am AEST) announcement by the US to withdraw from the 2015 international nuclear agreement which had lifted sanctions against Iran.
In overnight commodities trade, US gold futures closed essentially flat.
Oil settled lower.
Iron ore (China port, 62% Fe) swung lower.
LME copper and nickel fell.
The $A again traded in a relatively constrained range after dropping below US74.60c early yesterday evening.
Locally today, Westpac and the Melbourne Institute publish their monthly consumer confidence report, 10.30am AEST.
Overseas Market Commentary
Choppy trade featured across major European and US equities markets during the wait for the US president’s declaration of his position on the 2015 Iran agreement, retreating oil prices punctuated by a spattering of large corporate deal news.
Indices dropped when Mr Trump announced the US would pull out of the deal and reimpose sanctions, but soon recovered that loss.
France, Germany and the UK quickly vowed to remain with the principles of the agreement, underscoring heightened tensions, not the least on angst at new risk across already unstable Middle East scenarios.
No early decisive statements came from fellow signatories China and Russia.
Israel lauded the US decision and highlighted military activity initiated by Israel yesterday in association with Iran’s presence in Syria.
Among earlier data releases, Germany’s trade surplus grew by €2.6B during March to €22.0B. Exports rose 1.7%. Imports fell 0.9%.
March industrial production rose 1% for the month following a 1.7% fall in February.
In the US, a March job openings tally came in at 6.55M following 6.05M for February, boosted in part by a 100,000 increase in resignations to 3.3M.
A general business optimism index was estimated at 104.8, from 104.7.
Meanwhile, Argentina revealed it was seeking a line of credit from the International Monetary Fund (IMF), after last week’s lending rate bump to 40% failed to stop the peso (Argentine currency) from sliding against the $US.
Tonight in the US, April producer prices and March wholesale inventories are due, together with weekly mortgage applications.
Primary elections in four States will also attract attention.
A-B InBev, Daikin, G4S, Mitsubishi Motors, Mitsui Mining & Smelting, Office Depot, Siemens, Softbank, Toshiba Tec, Toyota and Twenty-First Century Fox are among companies scheduled to report earnings or provide updates today and tonight.
In overnight corporate news, Vodafone was reported to have almost sealed an €18B cash deal to purchase eastern and western European cable assets from Liberty Global.
Earlier, shareholders of Ireland’s Shire approved a £46B improved offer from Japan’s Takeda Pharmaceutical.
Meanwhile, Valeant Pharmaceuticals delivered market-beating quarterly revenue and full guidance and was pushed more than 8.5% higher.
Comcast fell 5.5% on reports of seeking up to $US60B in an effort to scuttle the proposed partial 21st Century Fox – Walt Disney deal.