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Market Opener – 02 Nov 2017
Local Markets Commentary
The Australian market opens today’s trade on mostly positive overnight commodities leads, ahead of influential domestic data today and keenly-anticipated announcements tonight from the Bank of England and regarding the US Federal Reserve.
In overnight commodities trade, gold futures, iron ore (China port, 62% Fe) and LME copper swung higher. Oil turned to settle lower. Nickel continued Tuesday’s robust rally.
The $A slipped to ~US76.75c after rising to ~US76.85c yesterday evening.
Locally today, September trade figures and building approvals are due 11.30am AEDST.
Meanwhile, BOQ trades ex-dividend and NAB has reported full-year results.
Overseas Market Commentary
Major European and US equities markets diverged overnight, amid rallies for several key commodities, mixed data releases, another plethora of earnings reports and political and rate rise uncertainty in the UK.
An expected presidential nomination tonight for a new chair for the US Federal Reserve also remained in focus, and was cited as support for a $US gain.
In addition, the anticipated unveiling of proposed US tax change legislation by a House of Representatives ‘Ways & Means’ committee was pushed back one day to tonight.
In the meantime, the Federal Reserve maintained status quo with indications of a late-year rate rise, tempered rises likely, gradual asset sales and soft inflation commentary.
Among data releases, an employment report estimated the US private sector had created 235,000 jobs during October, following forecasts of ~200,000.
ISM’s October manufacturing PMI fell 2.1 points to a nonetheless 58.7.
September construction spending rose 0.3% after a 0.1% gain for August.
In the UK, reports emerged the Defence Secretary had resigned amid harassment allegations against several parliamentarians.
Among UK data releases, the October manufacturing PMI came in at a healthy 56.3, following 55.9 for September.
A Bank of England policy committee member estimated, however, that up to 75,000 jobs could be lost in the UK finance sector as the UK negotiated its separation from the European Union.
Tonight in the US, weekly new unemployment claims and a jobs layoff report are due, ahead of the national monthly employment report tomorrow night. The ISM’s New York business activity index is also expected.
In the UK, the Bank of England holds a policy meeting, from which not a few economists are expecting a rate move.
AIG, Alibaba, Apache, Apple, Asics, Bombardier, BT, CBS, Credit Suisse, Daewoo Engineering, DowDupont, Itochu, Mazda Motor, Mitsui, (WM) Morrison (UK supermarket chain Morrisons), Sanofi, Royal Dutch Shell, Suzuki Motor and Yum! Brands are among companies scheduled to report earnings today or tonight.
In overnight corporate news, the UK’s Allergan lifted full-year guidance after a better-than-anticipated September quarter.
Vehicle manufacturers reporting US October sales included Ford (+6.2%), General Motors (-2.2%) and Toyota (+1.1%).
Facebook (+79% profit), Qualcomm (expectations exceeded), Tesla (greater-than-expected loss) and Kraft Heinz (below-forecast sales; 12% higher profit) each reported post-US settlement and will influence tonight’s trade.
The Australian market opens today’s trade on mostly positive overnight commodities leads, ahead of influential domestic data today and keenly-anticipated announcements tonight from the Bank of England and regarding the US Federal Reserve.
In overnight commodities trade, gold futures, iron ore (China port, 62% Fe) and LME copper swung higher. Oil turned to settle lower. Nickel continued Tuesday’s robust rally.
The $A slipped to ~US76.75c after rising to ~US76.85c yesterday evening.
Locally today, September trade figures and building approvals are due 11.30am AEDST.
Meanwhile, BOQ trades ex-dividend and NAB has reported full-year results.
Overseas Market Commentary
Major European and US equities markets diverged overnight, amid rallies for several key commodities, mixed data releases, another plethora of earnings reports and political and rate rise uncertainty in the UK.
An expected presidential nomination tonight for a new chair for the US Federal Reserve also remained in focus, and was cited as support for a $US gain.
In addition, the anticipated unveiling of proposed US tax change legislation by a House of Representatives ‘Ways & Means’ committee was pushed back one day to tonight.
In the meantime, the Federal Reserve maintained status quo with indications of a late-year rate rise, tempered rises likely, gradual asset sales and soft inflation commentary.
Among data releases, an employment report estimated the US private sector had created 235,000 jobs during October, following forecasts of ~200,000.
ISM’s October manufacturing PMI fell 2.1 points to a nonetheless 58.7.
September construction spending rose 0.3% after a 0.1% gain for August.
In the UK, reports emerged the Defence Secretary had resigned amid harassment allegations against several parliamentarians.
Among UK data releases, the October manufacturing PMI came in at a healthy 56.3, following 55.9 for September.
A Bank of England policy committee member estimated, however, that up to 75,000 jobs could be lost in the UK finance sector as the UK negotiated its separation from the European Union.
Tonight in the US, weekly new unemployment claims and a jobs layoff report are due, ahead of the national monthly employment report tomorrow night. The ISM’s New York business activity index is also expected.
In the UK, the Bank of England holds a policy meeting, from which not a few economists are expecting a rate move.
AIG, Alibaba, Apache, Apple, Asics, Bombardier, BT, CBS, Credit Suisse, Daewoo Engineering, DowDupont, Itochu, Mazda Motor, Mitsui, (WM) Morrison (UK supermarket chain Morrisons), Sanofi, Royal Dutch Shell, Suzuki Motor and Yum! Brands are among companies scheduled to report earnings today or tonight.
In overnight corporate news, the UK’s Allergan lifted full-year guidance after a better-than-anticipated September quarter.
Vehicle manufacturers reporting US October sales included Ford (+6.2%), General Motors (-2.2%) and Toyota (+1.1%).
Facebook (+79% profit), Qualcomm (expectations exceeded), Tesla (greater-than-expected loss) and Kraft Heinz (below-forecast sales; 12% higher profit) each reported post-US settlement and will influence tonight’s trade.