Research

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Before making any investment decision, you should seek the relevant advice.

State One Market Opener - 20 Oct 2016

 
Local Markets Commentary

The Australian market opens on generally lacklustre equities and mixed commodities leads, ahead of a third and final US presidential candidate debate commencing later this morning (AEDST).

A third and final US presidential candidate debate will commence later this morning (AEDST).

In overnight commodities trade, oil rallied. Gold futures also continued higher. Copper declined a little. Iron ore (China port) closed steady.

The $A traded beyond US77.0c after reaching ~US76.70c early yesterday evening.

Locally today, September employment figures are due 11.30am AEDST.

NAB’s quarterly business survey and CBA’s monthly business sales indicator are also due.

September forex transactions and reserve assets are due from the RBA post-trade.

September property prices are due out of China tomorrow.

Overseas Market Commentary

Major European and US equities markets ultimately gained overnight, rising oil prices supporting the energy sector and some on-target data out of China offering relief from some of last week’s figures.

In US data releases, the Federal Reserve’s region-by-region economic summary (beige book) revealed wages were beginning to rise in some districts, but overall remained ‘modest’. In addition, the report noted increased residential property activity.

September housing starts fell 9%, impacted by a 38% drop for apartments. Single-family home commencements rose 8.1% however.

Building permits rose 6.3%.

Weekly mortgage applications rose just 0.6% but were nonetheless 18.5% higher than a year ago.

UK August unemployment was reported at a steady 4.9%.

For the three months to the end of August, average earnings rose 2.3% year-on-year.

Meanwhile, Saudi Arabia conducted a $US17.5B bond offer.

Tonight in the US, weekly new unemployment claims, September existing home sales, a regional manufacturing index and a leading index report are due.

The European Central Bank will convene a policy meeting and host a post-meeting press conference.

American Airlines, Bank of NY Mellon, E*Trade, Microsoft, Nestlé, PayPal, Schlumberger Verizon and Walgreens Boots are among companies scheduled to report.

BAE Systems, Rolls-Royce Holdings and HSBC trade ex-dividend on the FTSE 100.

Overnight, Morgan Stanley results pleased early, but challenging market conditions were noted.

Wells Fargo pushed back a 10-year bond sale on a credit rating outlook downgrade to negative.

American Express earnings fell.

Halliburton surprised with a profit, but remained cautious.

 
Posted on 20/10/2016 6:47:42 AM

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