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Before making any investment decision, you should seek the relevant advice.
Market Opener – 26 Feb 2019
Local Markets Commentary
The Australian market commences today’s trade following vacillating overnight international equities and commodities trade and with a swag of large-cap domestic stocks trading ex-dividend.
Locally today, a weekly consumer sentiment index is due pre-market open.
In addition, several more influential stocks report earnings.
High-profile/large-cap stocks trading ex-dividend today include CCL, STO, WES and WOR. Please see pp4-5 for details.
In overnight commodities trade, oil dropped.
US gold futures (April) settled modestly lower.
Iron ore (China port, 62% Fe) fell.
LME copper and key base metals ultimately traded slightly lower.
The $A remained within a relatively narrow range after trading at ~US71.65c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets opened higher overnight, some reaching 2019 peaks but ultimately chopping through their respective sessions amid a wait for further specifics in China-US trade negotiations.
Major US indices settled at or near session lows.
Late Sunday the US president confirmed he would push back the proposed 1 March increase in tariffs on imports from China, indicating a concession, and citing progress sufficient for him to believe an agreement was close.
This had significantly buoyed China’s markets yesterday and was credited for the overnight equities risk appetite.
Meanwhile, the US president hosed down any major de-nuclearisation expectations out of this week’s face-to-face talks with North Korea’s Kim Jong Un in Hanoi, Vietnam.
In the UK, reaction varied to the PM’s call to delay a new parliamentary vote on arrangements governing the proposed 29 March separation from the European Union (EU).
For his part, European Council president Donald Tusk declared delaying the whole withdrawal would be ‘rational’, at the same time conceding the UK PM had been adamant wanting to prevent any need for this, even during discussions regarding legal and political factors in relation to a possible extension.
Meanwhile, the US and UK revealed they had reached agreement to ensure no disruption to derivatives markets whatever happens as the UK separates from the EU.
Among US data releases, the Chicago Fed national activity index dropped from 0.05 to -0.43.
A Texas region manufacturing index jumped from 1.0 to 13.1, however.
December wholesale inventories also rose, by 1.1% following a 0.4% November increase.
Tonight in the US, Federal Reserve chair Jerome Powell commences two days of parliamentary testimony, the first before a Senate banking panel, and tomorrow night’s before a House of Representatives financial services committee.
US data releases scheduled for release include the Richmond Fed services sector index, December building permits and housing starts, a consumer confidence reading, FHFA December residential property prices and Case-Shiller’s December house price index.
Companies scheduled to report earnings or updates later today or tonight include: Home Depot, KBR, Macy’s, Mylan, Peugeot, Ramsay Générale de Santé, Standard Chartered, Thales and Vale.
In overnight corporate news, General Electric announced it was selling the group’s biopharma division to Danahar Group for ~$US21B. Each stock soon rose by more than 5%.
Barrack Gold launched an all-scrip hostile bid for Newmont Mining, estimated at ~$US18B.
Earlier, Roche revealed an agreed $US4.8B purchase of Spark Therapeutics.
The Australian market commences today’s trade following vacillating overnight international equities and commodities trade and with a swag of large-cap domestic stocks trading ex-dividend.
Locally today, a weekly consumer sentiment index is due pre-market open.
In addition, several more influential stocks report earnings.
High-profile/large-cap stocks trading ex-dividend today include CCL, STO, WES and WOR. Please see pp4-5 for details.
In overnight commodities trade, oil dropped.
US gold futures (April) settled modestly lower.
Iron ore (China port, 62% Fe) fell.
LME copper and key base metals ultimately traded slightly lower.
The $A remained within a relatively narrow range after trading at ~US71.65c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets opened higher overnight, some reaching 2019 peaks but ultimately chopping through their respective sessions amid a wait for further specifics in China-US trade negotiations.
Major US indices settled at or near session lows.
Late Sunday the US president confirmed he would push back the proposed 1 March increase in tariffs on imports from China, indicating a concession, and citing progress sufficient for him to believe an agreement was close.
This had significantly buoyed China’s markets yesterday and was credited for the overnight equities risk appetite.
Meanwhile, the US president hosed down any major de-nuclearisation expectations out of this week’s face-to-face talks with North Korea’s Kim Jong Un in Hanoi, Vietnam.
In the UK, reaction varied to the PM’s call to delay a new parliamentary vote on arrangements governing the proposed 29 March separation from the European Union (EU).
For his part, European Council president Donald Tusk declared delaying the whole withdrawal would be ‘rational’, at the same time conceding the UK PM had been adamant wanting to prevent any need for this, even during discussions regarding legal and political factors in relation to a possible extension.
Meanwhile, the US and UK revealed they had reached agreement to ensure no disruption to derivatives markets whatever happens as the UK separates from the EU.
Among US data releases, the Chicago Fed national activity index dropped from 0.05 to -0.43.
A Texas region manufacturing index jumped from 1.0 to 13.1, however.
December wholesale inventories also rose, by 1.1% following a 0.4% November increase.
Tonight in the US, Federal Reserve chair Jerome Powell commences two days of parliamentary testimony, the first before a Senate banking panel, and tomorrow night’s before a House of Representatives financial services committee.
US data releases scheduled for release include the Richmond Fed services sector index, December building permits and housing starts, a consumer confidence reading, FHFA December residential property prices and Case-Shiller’s December house price index.
Companies scheduled to report earnings or updates later today or tonight include: Home Depot, KBR, Macy’s, Mylan, Peugeot, Ramsay Générale de Santé, Standard Chartered, Thales and Vale.
In overnight corporate news, General Electric announced it was selling the group’s biopharma division to Danahar Group for ~$US21B. Each stock soon rose by more than 5%.
Barrack Gold launched an all-scrip hostile bid for Newmont Mining, estimated at ~$US18B.
Earlier, Roche revealed an agreed $US4.8B purchase of Spark Therapeutics.