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Market Opener – 25 Oct 2017
Local Markets Commentary
The Australian market commences mid-week trade ahead of a quarterly domestic CPI update, amid a swathe of large-cap September quarter reports and AGM updates, and on some positive key commodities leads.
The Australian Bureau of Statistics is due to release September quarter CPI 11.30am AEDST.
The $A ultimately trod water overnight after falling below US77.80c early yesterday evening, but is likely to move today, on the CPI report and associated commentary.
In overnight commodities trade, oil rallied. US gold were pushed lower. Iron ore turned higher. LME copper continued so and nickel rallied further.
Overseas Market Commentary
Major European and US equities markets trade again differed overnight, amid closely-watched data releases, ongoing reporting seasons, and speculation regarding the next Federal Reserve chairman and likely European Central Bank plans.
European trade vacillated, but US indices mostly opened higher and largely maintained gains, buoyed by large-cap corporate results, enthusiasm for new index records and the promise of more information, perhaps by the end of the week, on proposed tax changes.
Initial euro zone October PMIs came in mixed, the manufacturing index rising 0.5 to 58.6, and the services sector reading falling by 0.9 to 54.9.
In Germany, the manufacturing reading was 0.1 lower, at 60.5, and services estimate 0.4 down, to 55.2.
Meanwhile, euro zone bonds were sold down ahead of Thursday’s European Central Bank (ECB) policy meeting, expected to deliver new information on the bond purchase program.
Markit PMIs for the US, indicated increased activity in both the manufacturing and services sectors, initial estimates reported at 54.5 (+2.1) and 55.9 (+0.6) respectively.
Tonight in the US, durable goods orders, new home sales, a house price index and weekly mortgage applications are due.
Antofagasta, Boeing, Coca-Cola, GlaxoSmithKline, LG Display and Visa are among companies scheduled to report earnings later today or tonight. Lloyds is due to provide a trading update.
In overnight corporate news, Caterpillar was pushed 5% higher on pleasing sales and better-than-anticipated profit, plus a welcome forecasts boost.
3M traded ~7% higher on its headline figures.
Likewise, drug developer and marketer Novartis fared well.
McDonald’s revenue fell 10%, but this and earnings headlines met expectations, buoyed by US sales.
General Motors’ revenue was down 14%, but the manufacturer achieved profit across all divisions for the first time in three years.
Lockheed Martin’s quarter undershot forecasts, but a lift in earnings guidance appeared to support the stock.
The Australian market commences mid-week trade ahead of a quarterly domestic CPI update, amid a swathe of large-cap September quarter reports and AGM updates, and on some positive key commodities leads.
The Australian Bureau of Statistics is due to release September quarter CPI 11.30am AEDST.
The $A ultimately trod water overnight after falling below US77.80c early yesterday evening, but is likely to move today, on the CPI report and associated commentary.
In overnight commodities trade, oil rallied. US gold were pushed lower. Iron ore turned higher. LME copper continued so and nickel rallied further.
Overseas Market Commentary
Major European and US equities markets trade again differed overnight, amid closely-watched data releases, ongoing reporting seasons, and speculation regarding the next Federal Reserve chairman and likely European Central Bank plans.
European trade vacillated, but US indices mostly opened higher and largely maintained gains, buoyed by large-cap corporate results, enthusiasm for new index records and the promise of more information, perhaps by the end of the week, on proposed tax changes.
Initial euro zone October PMIs came in mixed, the manufacturing index rising 0.5 to 58.6, and the services sector reading falling by 0.9 to 54.9.
In Germany, the manufacturing reading was 0.1 lower, at 60.5, and services estimate 0.4 down, to 55.2.
Meanwhile, euro zone bonds were sold down ahead of Thursday’s European Central Bank (ECB) policy meeting, expected to deliver new information on the bond purchase program.
Markit PMIs for the US, indicated increased activity in both the manufacturing and services sectors, initial estimates reported at 54.5 (+2.1) and 55.9 (+0.6) respectively.
Tonight in the US, durable goods orders, new home sales, a house price index and weekly mortgage applications are due.
Antofagasta, Boeing, Coca-Cola, GlaxoSmithKline, LG Display and Visa are among companies scheduled to report earnings later today or tonight. Lloyds is due to provide a trading update.
In overnight corporate news, Caterpillar was pushed 5% higher on pleasing sales and better-than-anticipated profit, plus a welcome forecasts boost.
3M traded ~7% higher on its headline figures.
Likewise, drug developer and marketer Novartis fared well.
McDonald’s revenue fell 10%, but this and earnings headlines met expectations, buoyed by US sales.
General Motors’ revenue was down 14%, but the manufacturer achieved profit across all divisions for the first time in three years.
Lockheed Martin’s quarter undershot forecasts, but a lift in earnings guidance appeared to support the stock.