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Before making any investment decision, you should consult your adviser.
Market Opener – 01 Nov 2018
Local Markets Commentary
The Australian market commences a new month ahead of new material domestic and regional data, another batch of major domestic stocks reporting and providing updates, and a Bank of England policy meeting and swag of US indicators due tonight.
Overnight international equities trade leads are positive, but commodities trade proved largely negative.
Caixin is scheduled to release it China October manufacturing PMI 12.45pm AEDT.
A manufacturing PMI for Japan is due 11.30am AEDT.
Locally today, AiG releases a manufacturing PMI 9.30am AEDT.
A September house price report is also expected this morning.
September’s trade balance and September quarter import and export prices are due 11.30am AEDT.
Post-trade, the Reserve Bank of Australia (RBA) publishes October commodity prices.
Among corporate reports, NAB has reported full year results, and WOW September sales, each pre-trade.
Several large-cap stocks also host AGMs today. Please see pp2-3 for a detailed list.
In overnight commodities trade, oil extended Tuesday’s fall.
US (December) gold futures and iron ore (China port, 62% Fe) fell.
LME copper continued this week’s decline. Nickel swung lower, and aluminium continued so.
The $A slipped below US70.80c after trading at US70.85c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets jumped on opening overnight, gains never looking seriously threatened during end-of-month trade, with some positive US reports also bolstering sentiment.
In addition, the World Bank placed China in the top 50 nations on its ease-of-doing-business list.
The US Federal Reserve revealed proposals to ease regulatory requirements for some banks.
Among a raft of US data releases, a private sector jobs report which estimated 227,000 new jobs for October, against expectations of 180,000. The report however, also included a significant revision of the September jobs tally, from 230,000 to 218,000.
September quarter national employment costs rose 0.8%, following a 0.6% June quarter increase. Wages were calculated 0.9% higher, after rising 0.5% in September.
The Chicago PMI fell by two points to a nonetheless robust 58.4.
The euro zone’s initial October year-on-year CPI growth reading was estimated at 2.2%, as forecast, up 0.1% for the month.
In Germany, September retail sales were reported 0.1% higher for the month, after falling 0.3% in August. Sales dropped 2.6% against September 2017.
Meanwhile, Turkey’s central bank forecast 23.5% inflation by year’s end, due to the magnitude of the lira’s depreciation.
Tonight in the US, weekly initial jobless claims and a job cuts report are due, ahead of tomorrow night’s release of October employment statistics.
ISM’s influential manufacturing sector activity index, September quarter productivity, September construction spending, October vehicle sales and Markit’s October PMIs are also due tonight.
Elsewhere, the Bank of England (BoE) holds a policy meeting and will release an outcomes statement, ahead of BoE governor Mark Carney’s highly-anticipated press conference.
The BoE will also release a new inflation outlook report.
Companies scheduled to reveal earnings or provide updates later today or tonight include: Apple, BT, Carlsberg, DowDuPont, Janus Henderson, Kraft Heinz, Motorola, Shire, Starbucks, Sumitomo, Suzuki Motor, Teva Pharmaceutical and Yamaha.
Unilever trades ex-dividend on the FTSE 100.
In overnight corporate news, Facebook predicted margin falls would cease from the end of 2019. Costs had risen 50% - 55% this year, and were expected to increase by 40% -50% next year, the company revealed.
Facebook’s better-than-anticipated September quarter earnings appeared to boost overall tech sentiment.
Among the vehicle manufacturers, General Motors exceeded quarterly expectations and also forecast an accelerated full-year profit.
The Australian market commences a new month ahead of new material domestic and regional data, another batch of major domestic stocks reporting and providing updates, and a Bank of England policy meeting and swag of US indicators due tonight.
Overnight international equities trade leads are positive, but commodities trade proved largely negative.
Caixin is scheduled to release it China October manufacturing PMI 12.45pm AEDT.
A manufacturing PMI for Japan is due 11.30am AEDT.
Locally today, AiG releases a manufacturing PMI 9.30am AEDT.
A September house price report is also expected this morning.
September’s trade balance and September quarter import and export prices are due 11.30am AEDT.
Post-trade, the Reserve Bank of Australia (RBA) publishes October commodity prices.
Among corporate reports, NAB has reported full year results, and WOW September sales, each pre-trade.
Several large-cap stocks also host AGMs today. Please see pp2-3 for a detailed list.
In overnight commodities trade, oil extended Tuesday’s fall.
US (December) gold futures and iron ore (China port, 62% Fe) fell.
LME copper continued this week’s decline. Nickel swung lower, and aluminium continued so.
The $A slipped below US70.80c after trading at US70.85c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets jumped on opening overnight, gains never looking seriously threatened during end-of-month trade, with some positive US reports also bolstering sentiment.
In addition, the World Bank placed China in the top 50 nations on its ease-of-doing-business list.
The US Federal Reserve revealed proposals to ease regulatory requirements for some banks.
Among a raft of US data releases, a private sector jobs report which estimated 227,000 new jobs for October, against expectations of 180,000. The report however, also included a significant revision of the September jobs tally, from 230,000 to 218,000.
September quarter national employment costs rose 0.8%, following a 0.6% June quarter increase. Wages were calculated 0.9% higher, after rising 0.5% in September.
The Chicago PMI fell by two points to a nonetheless robust 58.4.
The euro zone’s initial October year-on-year CPI growth reading was estimated at 2.2%, as forecast, up 0.1% for the month.
In Germany, September retail sales were reported 0.1% higher for the month, after falling 0.3% in August. Sales dropped 2.6% against September 2017.
Meanwhile, Turkey’s central bank forecast 23.5% inflation by year’s end, due to the magnitude of the lira’s depreciation.
Tonight in the US, weekly initial jobless claims and a job cuts report are due, ahead of tomorrow night’s release of October employment statistics.
ISM’s influential manufacturing sector activity index, September quarter productivity, September construction spending, October vehicle sales and Markit’s October PMIs are also due tonight.
Elsewhere, the Bank of England (BoE) holds a policy meeting and will release an outcomes statement, ahead of BoE governor Mark Carney’s highly-anticipated press conference.
The BoE will also release a new inflation outlook report.
Companies scheduled to reveal earnings or provide updates later today or tonight include: Apple, BT, Carlsberg, DowDuPont, Janus Henderson, Kraft Heinz, Motorola, Shire, Starbucks, Sumitomo, Suzuki Motor, Teva Pharmaceutical and Yamaha.
Unilever trades ex-dividend on the FTSE 100.
In overnight corporate news, Facebook predicted margin falls would cease from the end of 2019. Costs had risen 50% - 55% this year, and were expected to increase by 40% -50% next year, the company revealed.
Facebook’s better-than-anticipated September quarter earnings appeared to boost overall tech sentiment.
Among the vehicle manufacturers, General Motors exceeded quarterly expectations and also forecast an accelerated full-year profit.