Research

Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should seek the relevant advice.

Market Opener – 18 Jan 2019

 
Local Markets Commentary 
The Australian market commences Friday trade following mixed overnight international equities and commodities trade, ahead of key data out of Japan today, expectations of several influential China economic indicators Monday, and a US Monday public holiday. 

Among the major commodities, oil and US (February) gold futures settled lower.

Iron ore (China port 62% Fe fines) rose modestly.

LME copper extended Wednesday’s gain.

The $A appreciated to ~US71.85c after trading at ~US71.60c early yesterday evening.

Locally today, no major data is anticipated.

Further December quarter and half year corporate updates are anticipated, however.

Regionally, Japan’s December CPI report is keenly anticipated, 10.30am AEDT.

Commentary is anticipated regarding China’s trade talks with the US, which were confirmed yesterday by China as formally resuming in Washington 30 January. 

GDP, industrial production and retail sales are anticipated out of China Monday.

Overseas Market Commentary
Major European and US equities markets trade diverged overnight, largely on regional issues that will nonetheless influence overall international economic growth prospects.

Mixed data and corporate reports also influenced select trade.

A media report claimed the US treasury secretary favours removing at least some tariffs on imports from China, at odds with the US chief trade representative.

This produced a spike in US indices during the last two hours of trade, but the US administration was quick to dispel belief that any decisions had been formalised. 

Official US-China trade talks are next scheduled for 30 January, in Washington.

In the UK, public calls for a second referendum on whether to leave the European Union (EU) grew increased. 

Meanwhile, the British pound appreciated more than 0.75% against the $US, to its strongest in ~two months.

Among overnight data releases, the euro zone’s final December CPI readings were confirmed flat for the quarter and up 1.6% year-on-year, following a 0.2% monthly pull back in November.

This pushed the euro to ~two-week lows against the $US.

November construction output was estimated 0.09% lower for the month following a 1.63% October fall, and was 0.9% higher year-on-year.

In the US, weekly new unemployment claims fell by 3,000.

A Philadelphia region manufacturing index pleased, jumping to 17.0 from 9.1. 

Tonight in the US, a University of Michigan initial January sentiment reading is due. December industrial production is also scheduled for release, but not anticipated, due to the partial government services shut down. 

Companies scheduled to report for the December quarter include Rio Tinto, Schlumberger, State Steel Corp and VF Corporation.

In overnight corporate news, Morgan Stanley and Société Générale results failed to meet expectations.

Apple supplier Taiwan Semiconductor Manufacturing also dented some sentiment, predicting revenue could fall 14%. 

A media report also ventured Apple was ready to reduce personnel recruitment.

Netflix has reported post-US trade and will influence some of tonight’s sentiment.

Revenue reportedly came in a little beneath some forecasts.

Meanwhile, US equities markets will be closed Monday due to a public holiday.
 
Posted on 18/01/2019 7:00:00 AM

Back to top