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Before making any investment decision, you should seek the relevant advice.
Market Opener – 27 Sep 2018
Local Markets Commentary
The Australian market commences today’s trade on negative overnight US equities and key commodities leads, ahead of new data out of China today and a swag of significant US economic indicators tonight.
In overnight commodities trade, oil swung lower.
US (December) gold futures also headed lower.
Iron ore (62% Fe, China port) was pushed modestly lower.
LME copper, nickel and aluminium also declined.
The $A remained within a relative narrow range after trading at ~US72.55c early yesterday evening.
Locally today, the Australian Bureau of Statistics releases August job vacancies 11.30am AEST.
In addition, a plethora of stocks trades companies ex-dividend. Please see pp3-4 for details.
Regionally, China is scheduled to report August industrial profits 11.30am AEST.
New Zealand’s central bank has this morning retained the official cash rate at its record low 1.75%. Moreover, citing international trade uncertainties, the RBNZ said rates would likely remain at this level for at least all of 2019.
NB: Public holidays are scheduled for Melbourne and most of Victoria’s local council regions tomorrow, and for the ACT, New South Wales, Queensland and South Australia Monday.
Overseas Market Commentary
US equities markets opened higher and maintained gains until the last half hour of trade which featured a swing lower.
Across the Atlantic, the FTSE 100 chopped markedly and Germany’s DAX 30 closed at session highs.
The US indices fall came after the US Federal Reserve raised its rates target a further 0.25%, to 2.25%, and signalled it would continue doing so, citing expected ongoing economic growth for as much as three years.
Earlier, China had attracted attention with the MSCI announcing it was considering boosting China’s weighting within global benchmarks by up to four times. China’s EM (Emerging Markets) index weighting could almost double, MSCI said.
For its own part, China had announced a 1 November planned reduction in import taxes for goods including construction materials, electrical equipment, machinery, paper products and textiles products.
In new overnight data releases, US August new home sales were reported 3.5% higher for the month, and 12.7% from a year earlier. This followed downward revisions for July and June.
Tonight in the US, a third and final June quarter GDP growth reading is due.
August durable goods orders, wholesale inventories, pending home sales, a regional manufacturing index and weekly new unemployment claims are also anticipated.
US Federal Reserve chair Jerome Powell is again scheduled to speak publicly.
Elsewhere, European Central Bank president Mario Draghi, and Bank of England (BoE) governor Mark Carney plus BoE chief economist Andy Haldane are also scheduled to speak.
Earnings or trading updates are expected from Accenture, ConAgra Brands and TUI.
In overnight corporate news, Twenty-First Century Fox and Walt Disney revealed they would sell their Sky Plc holdings to Comcast, effectively enabling Comcast to achieve full Sky control.
Deutsche Bank was reported to have discussed potential mergers with both UBS and Commerzbank.
Meanwhile, Ford Motor’s CEO claimed the company had lost $US1B worth of profit due to steel and aluminium import taxes.
Honda Motor conceded costs had risen by ‘hundreds of millions of dollars’ due to higher US steel prices.
The Australian market commences today’s trade on negative overnight US equities and key commodities leads, ahead of new data out of China today and a swag of significant US economic indicators tonight.
In overnight commodities trade, oil swung lower.
US (December) gold futures also headed lower.
Iron ore (62% Fe, China port) was pushed modestly lower.
LME copper, nickel and aluminium also declined.
The $A remained within a relative narrow range after trading at ~US72.55c early yesterday evening.
Locally today, the Australian Bureau of Statistics releases August job vacancies 11.30am AEST.
In addition, a plethora of stocks trades companies ex-dividend. Please see pp3-4 for details.
Regionally, China is scheduled to report August industrial profits 11.30am AEST.
New Zealand’s central bank has this morning retained the official cash rate at its record low 1.75%. Moreover, citing international trade uncertainties, the RBNZ said rates would likely remain at this level for at least all of 2019.
NB: Public holidays are scheduled for Melbourne and most of Victoria’s local council regions tomorrow, and for the ACT, New South Wales, Queensland and South Australia Monday.
Overseas Market Commentary
US equities markets opened higher and maintained gains until the last half hour of trade which featured a swing lower.
Across the Atlantic, the FTSE 100 chopped markedly and Germany’s DAX 30 closed at session highs.
The US indices fall came after the US Federal Reserve raised its rates target a further 0.25%, to 2.25%, and signalled it would continue doing so, citing expected ongoing economic growth for as much as three years.
Earlier, China had attracted attention with the MSCI announcing it was considering boosting China’s weighting within global benchmarks by up to four times. China’s EM (Emerging Markets) index weighting could almost double, MSCI said.
For its own part, China had announced a 1 November planned reduction in import taxes for goods including construction materials, electrical equipment, machinery, paper products and textiles products.
In new overnight data releases, US August new home sales were reported 3.5% higher for the month, and 12.7% from a year earlier. This followed downward revisions for July and June.
Tonight in the US, a third and final June quarter GDP growth reading is due.
August durable goods orders, wholesale inventories, pending home sales, a regional manufacturing index and weekly new unemployment claims are also anticipated.
US Federal Reserve chair Jerome Powell is again scheduled to speak publicly.
Elsewhere, European Central Bank president Mario Draghi, and Bank of England (BoE) governor Mark Carney plus BoE chief economist Andy Haldane are also scheduled to speak.
Earnings or trading updates are expected from Accenture, ConAgra Brands and TUI.
In overnight corporate news, Twenty-First Century Fox and Walt Disney revealed they would sell their Sky Plc holdings to Comcast, effectively enabling Comcast to achieve full Sky control.
Deutsche Bank was reported to have discussed potential mergers with both UBS and Commerzbank.
Meanwhile, Ford Motor’s CEO claimed the company had lost $US1B worth of profit due to steel and aluminium import taxes.
Honda Motor conceded costs had risen by ‘hundreds of millions of dollars’ due to higher US steel prices.