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Market Opener – 24 Sep 2019
Local Markets Commentary
The Australian market opens today’s trade following a cocktail of overnight releases and speeches underscoring international economic growth concerns, ahead of anticipated speeches from the Reserve Bank of Australia governor this evening and the Bank of Japan governor later today, and the official commencement of the week-long UN general assembly in New York tonight.
Locally today, a weekly consumer sentiment reading is due pre-trade.
CAR and REX are among companies trading ex-dividend. Please see p4 for a detailed list.
This evening, RBA governor Philip Lowe is due to deliver an address entitled An Economic Update at an Armidale, NSW Business Chamber dinner.
This presentation is particularly anticipated, given the RBA’s next policy meeting is scheduled for Tuesday next week (1 October), and with the release last week of the minutes from the 3 September policy meeting still fresh in mind.
Regionally, a public speech from Bank of Japan governor Haruhiko Kuroda is scheduled for 3.35pm AEST.
This address is also keenly awaited, given expectations that some policy easing could be appropriate next month, and with the previous policy meeting minutes listed for release tomorrow.
In overnight commodities trade, oil swung higher.
US gold futures (December) rallied.
Iron ore (Nymex CFR China, 62% Fe) turned to record a slight gain.
LME copper turned higher and nickel lower. Aluminium continued to decline.
The $A appreciated beyond US67.70c after trading at ~US67.65c early yesterday evening.
Locally today, a weekly consumer sentiment reading is due pre-trade.
CAR and REX are among companies trading ex-dividend. Please see p4 for a detailed list.
This evening, RBA governor Philip Lowe is due to deliver an address entitled An Economic Update at an Armidale, NSW Business Chamber dinner.
This presentation is particularly anticipated, given the RBA’s next policy meeting is scheduled for Tuesday next week (1 October), and with the release last week of the minutes from the 3 September policy meeting still fresh in mind.
Regionally, a public speech from Bank of Japan governor Haruhiko Kuroda is scheduled for 3.35pm AEST.
This address is also keenly awaited, given expectations that some policy easing could be appropriate next month, and with the previous policy meeting minutes listed for release tomorrow.
In overnight commodities trade, oil swung higher.
US gold futures (December) rallied.
Iron ore (Nymex CFR China, 62% Fe) turned to record a slight gain.
LME copper turned higher and nickel lower. Aluminium continued to decline.
The $A appreciated beyond US67.70c after trading at ~US67.65c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets declined early overnight, as several reports, speeches and data releases highlighted international economic growth risk. Key US indices trade indicated improved risk sentiment by settlement, however.
European Central Bank president Mario Draghi told the European parliament’s economic and monetary affairs committee that no near-term regional economic rebound was apparent.
In this context, Mr Draghi again urged governments to use spending to support growth and not rely mostly on central bank stimulus.
In the meantime, the European Systemic Risk board, of which Mr Draghi is chair, issued five European nations with residential property warnings and delivered recommendations, regarding remedial action, to six others.
US officials maintained high-level face-to-face US-China trade talks remained on the agenda, but no confirmation came from China, following last week’s lower level talks in Washington.
In the UK, the Supreme Court announced it would deliver its decision on the five-week suspension of parliament at 10.30am British time Tuesday (this evening AEST).
Meanwhile, a United Nations (UN) climate change summit headed the official commencemen of the UN general assembly in New York tonight.
In overnight data releases, the preliminary September manufacturing PMI reading for the euro zone was reported at 45.6, the lowest reading in six years 11 months, following 47 for August.
The services sector activity index was estimated 1.5 points lower than for August, at 52.0.
For Germany, the manufacturing PMI fell to an even more decidedly contractionary 41.4, from 43.5.
The nation’s services sector activity index dropped 2.3 points, to 52.5, the first decline for this index in 6.5 years.
Subsequently, the euro traded more than 0.2% lower against the $US.
In the US, the Chicago Fed national activity index improved to 0.1 from a revised -0.41.
Markit preliminary US September PMIs came in at 50.9 for the services sector, from 50.7, and 51.0 for manufacturing, from 50.3 in August.
The services index employment component reportedly pulled back for the first time in 9.5 years.
Tonight in the US, the Richmond Fed manufacturing index, a consumer confidence reading and two July house price indices are due.
A $US40B two-year note auction is also scheduled.
Elsewhere, the UK Supreme Court’s decision this evening, after hearing arguments last week regarding the lawfulness or otherwise of the five-week suspension of parliament, is expected to produce further political angst. Currently, parliament is set to resume 14 October.
Companies scheduled to report earnings or provide updates tonight include Blackberry (pre-US trade) and Nike (post-US trade).
European Central Bank president Mario Draghi told the European parliament’s economic and monetary affairs committee that no near-term regional economic rebound was apparent.
In this context, Mr Draghi again urged governments to use spending to support growth and not rely mostly on central bank stimulus.
In the meantime, the European Systemic Risk board, of which Mr Draghi is chair, issued five European nations with residential property warnings and delivered recommendations, regarding remedial action, to six others.
US officials maintained high-level face-to-face US-China trade talks remained on the agenda, but no confirmation came from China, following last week’s lower level talks in Washington.
In the UK, the Supreme Court announced it would deliver its decision on the five-week suspension of parliament at 10.30am British time Tuesday (this evening AEST).
Meanwhile, a United Nations (UN) climate change summit headed the official commencemen of the UN general assembly in New York tonight.
In overnight data releases, the preliminary September manufacturing PMI reading for the euro zone was reported at 45.6, the lowest reading in six years 11 months, following 47 for August.
The services sector activity index was estimated 1.5 points lower than for August, at 52.0.
For Germany, the manufacturing PMI fell to an even more decidedly contractionary 41.4, from 43.5.
The nation’s services sector activity index dropped 2.3 points, to 52.5, the first decline for this index in 6.5 years.
Subsequently, the euro traded more than 0.2% lower against the $US.
In the US, the Chicago Fed national activity index improved to 0.1 from a revised -0.41.
Markit preliminary US September PMIs came in at 50.9 for the services sector, from 50.7, and 51.0 for manufacturing, from 50.3 in August.
The services index employment component reportedly pulled back for the first time in 9.5 years.
Tonight in the US, the Richmond Fed manufacturing index, a consumer confidence reading and two July house price indices are due.
A $US40B two-year note auction is also scheduled.
Elsewhere, the UK Supreme Court’s decision this evening, after hearing arguments last week regarding the lawfulness or otherwise of the five-week suspension of parliament, is expected to produce further political angst. Currently, parliament is set to resume 14 October.
Companies scheduled to report earnings or provide updates tonight include Blackberry (pre-US trade) and Nike (post-US trade).