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Before making any investment decision, you should seek the relevant advice.
Market Opener – 15 Feb 2018
Local Markets Commentary
The Australian market opens today’s trade with another large contingent of high-cap domestic stock earnings reports, key local data and largely positive overnight international trade leads.
Locally today, January employment statistics, as calculate by the Australian Bureau of Statistics (ABS) are due 11.30am AEDST.
The Melbourne Institute also publishes its monthly inflation expectations report today, at ~11am.
JHG and MIN are among companies trading ex-dividend.
Regionally, Japan is scheduled to release December machinery orders 10.50am AEDST and industrial production (final) 3.30pm.
In overnight commodities trade, US gold futures settled sharply higher.
WTI crude and Brent each gained, unlike the previous session.
Iron ore (China port, 62% Fe) rallied for a second consecutive session.
LME copper and other key base metals picked up the pace of the previous session’s rally.
The $A was propelled to ~US79.10c after trading at ~US78.70c early yesterday evening, and has climbed further this morning.
Overseas Market Commentary
Major equities markets opened higher in Europe overnight and trended so in the US, producing strong overall gains.
Key indices chopped and/or swung, amid mixed influential data releases, $US turns and US 10-year bond yields at new four-year peaks.
Much-anticipated data releases included US January CPI, estimated at 0.5% growth for the month and 2.1% year-on-year.
The readings were respectively 0.1% and 0.2% higher than mostly forecast, initially spawning expectations of a possible four rate rises this year.
The core (excluding energy and food) CPI growth rate, however, remained at 1.8%.
January retail sales surprised, slipping 0.3%. Further, December’s were lowered from a 0.4% gain to no change.
December business inventories rose 0.4%.
In the euro zone, December quarter GDP growth was reported at 0.6% for the three months, the same rate as for the September and June quarters.
Year-on-year, GDP grew 2.7%.
December industrial production surprised on the upside, rising 5.2% year-on-year against 3.7% in November. For the month, however, output rose 0.4% following 1.3% during November.
Germany reported December quarter GDP growth at 0.6% against 0.8% for the September quarter. Year-on-year, the rate came in at 2.9%, and for 2017, was estimated at 2.2%.
Meanwhile, Germany’s final January CPI reading confirmed a 0.7% pullback for the month.
Tonight in the US, January industrial production, producer prices, weekly new unemployment claims, two regional manufacturing indices and a home builders’ sentiment index are due.
Elsewhere, the European Commission will publish euro zone December trade figures.
European Central Bank chief economist Peter Praet is also due to speak publicly in Paris.
Airbus, Aveva, CBS,and Nestlé are among companies scheduled to report earnings or provide trading updates today or tonight.
In overnight corporate news, Sky revealed it would pay £1.2B for 2019 Premier League rights.
China’s markets are closed from today through 21 February (Wednesday next week), due to Lunar New Year and Spring Festival holidays.
Hong Kong’s will close at midday local time today (New Year’s eve) and remain so through Monday next week. South Korea’s markets are closed today and tomorrow.
US equities markets will be closed Monday, due to a public holiday.
The Australian market opens today’s trade with another large contingent of high-cap domestic stock earnings reports, key local data and largely positive overnight international trade leads.
Locally today, January employment statistics, as calculate by the Australian Bureau of Statistics (ABS) are due 11.30am AEDST.
The Melbourne Institute also publishes its monthly inflation expectations report today, at ~11am.
JHG and MIN are among companies trading ex-dividend.
Regionally, Japan is scheduled to release December machinery orders 10.50am AEDST and industrial production (final) 3.30pm.
In overnight commodities trade, US gold futures settled sharply higher.
WTI crude and Brent each gained, unlike the previous session.
Iron ore (China port, 62% Fe) rallied for a second consecutive session.
LME copper and other key base metals picked up the pace of the previous session’s rally.
The $A was propelled to ~US79.10c after trading at ~US78.70c early yesterday evening, and has climbed further this morning.
Overseas Market Commentary
Major equities markets opened higher in Europe overnight and trended so in the US, producing strong overall gains.
Key indices chopped and/or swung, amid mixed influential data releases, $US turns and US 10-year bond yields at new four-year peaks.
Much-anticipated data releases included US January CPI, estimated at 0.5% growth for the month and 2.1% year-on-year.
The readings were respectively 0.1% and 0.2% higher than mostly forecast, initially spawning expectations of a possible four rate rises this year.
The core (excluding energy and food) CPI growth rate, however, remained at 1.8%.
January retail sales surprised, slipping 0.3%. Further, December’s were lowered from a 0.4% gain to no change.
December business inventories rose 0.4%.
In the euro zone, December quarter GDP growth was reported at 0.6% for the three months, the same rate as for the September and June quarters.
Year-on-year, GDP grew 2.7%.
December industrial production surprised on the upside, rising 5.2% year-on-year against 3.7% in November. For the month, however, output rose 0.4% following 1.3% during November.
Germany reported December quarter GDP growth at 0.6% against 0.8% for the September quarter. Year-on-year, the rate came in at 2.9%, and for 2017, was estimated at 2.2%.
Meanwhile, Germany’s final January CPI reading confirmed a 0.7% pullback for the month.
Tonight in the US, January industrial production, producer prices, weekly new unemployment claims, two regional manufacturing indices and a home builders’ sentiment index are due.
Elsewhere, the European Commission will publish euro zone December trade figures.
European Central Bank chief economist Peter Praet is also due to speak publicly in Paris.
Airbus, Aveva, CBS,and Nestlé are among companies scheduled to report earnings or provide trading updates today or tonight.
In overnight corporate news, Sky revealed it would pay £1.2B for 2019 Premier League rights.
China’s markets are closed from today through 21 February (Wednesday next week), due to Lunar New Year and Spring Festival holidays.
Hong Kong’s will close at midday local time today (New Year’s eve) and remain so through Monday next week. South Korea’s markets are closed today and tomorrow.
US equities markets will be closed Monday, due to a public holiday.