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Market Opener – 08 Feb 2019
Local Markets Commentary
The Australian market opens Friday trade following further overnight declines across major international equities markets, ahead of a set of new forecasts from the Reserve Bank of Australia (RBA).
The RBA’s quarterly policy update, due for release 11.30am AEDT, is much anticipated following this week’s apparent resetting of interest rate outlooks.
AFI is among stocks trading ex-dividend. Please see p3 for a detailed list.
In overnight commodities trade, oil turned and fell.
US gold futures (April) settled essentially flat.
LME copper headed lower. Nickel swung higher. Aluminium continued to decline.
The $A ultimately trod water after falling a little below US71.0c early yesterday evening.
China’s markets remain closed, but will open Monday.
Japan’s markets will be closed Monday during a public holiday.
Overseas Market Commentary
Major European and US equities markets headed lower in early overnight trade, both the European Commission and Bank of England adding to a chorus of economic growth downgrades.
In addition, the US administration confirmed the presidents of China and the US were unlikely to meet to formalise any trade deal before the US 1 March deadline of increased taxes on Chinese imports.
The Bank of England lowered forecast 2019 GDP growth by 0.5% (from just three months ago) to 1.2%.
This, ahead of a swag of major UK economic indicators due for release Monday, and as PM Theresa May renewed face-to-face talks with European Union (EU) leaders in Brussels, in an effort to find a way the UK parliament will approve plans for the UK’s withdrawal from the EU.
Further, high-ranking UK public service officials and the Bank of England were reportedly preparing a stimulus package should the separation occur without agreed arrangements in place.
For its part, the European Commission (EC) issued a series of new economic forecasts that included 1.3% euro zone GDP growth, against a 1.9% November prediction.
The EC also reduced its expected euro zone CPI growth for 2019 and 2020, to 1.4% and 1.5% respectively.
This sparked a regional bonds sell-off, pushing yields higher.
US government bond prices rose for a third consecutive session however, pushing yields lower.
Also in the euro zone, a European Central Bank economic bulletin confirmed the central bank viewed a series of recent data as ‘weaker than expected’.
In the meantime, Germany’s December industrial production was reported to have declined by 0.4%, following forecasts of a 0.8% rise, and monthly falls since September.
In the US, weekly new unemployment claims dropped by 19,000, 13,000 more than forecast, to 234,000.
Consumer credit fell to $US16.55B during December, against $US22.41B at the end of November.
Tonight in the US, December wholesale inventories are due.
Elsewhere, Germany reports December trade statistics.
Companies scheduled to report earnings later today or tonight include: Hasbro, Isuzu Motors, Jaguar Land Rover, PG&E, Phillips 66 and Rinnai.
In overnight corporate news, US regional financial entities SunTrust and BB&T announced a $US66B 43:57 merger deal.
Twitter tumbled almost 10% after forecasting higher expenses.
Steel manufacturer ArcelorMittal revealed it expected 2019 steel demand growth to moderate to 0.5% - 1%, following 2.8% for 2018. Nonetheless the group announced a buy-back and 100% dividend boost.
The Renault – Nissan alliance appeared threatened, according to those who had viewed correspondence regarding former CEO Carlos Ghosn.
The Australian market opens Friday trade following further overnight declines across major international equities markets, ahead of a set of new forecasts from the Reserve Bank of Australia (RBA).
The RBA’s quarterly policy update, due for release 11.30am AEDT, is much anticipated following this week’s apparent resetting of interest rate outlooks.
AFI is among stocks trading ex-dividend. Please see p3 for a detailed list.
In overnight commodities trade, oil turned and fell.
US gold futures (April) settled essentially flat.
LME copper headed lower. Nickel swung higher. Aluminium continued to decline.
The $A ultimately trod water after falling a little below US71.0c early yesterday evening.
China’s markets remain closed, but will open Monday.
Japan’s markets will be closed Monday during a public holiday.
Overseas Market Commentary
Major European and US equities markets headed lower in early overnight trade, both the European Commission and Bank of England adding to a chorus of economic growth downgrades.
In addition, the US administration confirmed the presidents of China and the US were unlikely to meet to formalise any trade deal before the US 1 March deadline of increased taxes on Chinese imports.
The Bank of England lowered forecast 2019 GDP growth by 0.5% (from just three months ago) to 1.2%.
This, ahead of a swag of major UK economic indicators due for release Monday, and as PM Theresa May renewed face-to-face talks with European Union (EU) leaders in Brussels, in an effort to find a way the UK parliament will approve plans for the UK’s withdrawal from the EU.
Further, high-ranking UK public service officials and the Bank of England were reportedly preparing a stimulus package should the separation occur without agreed arrangements in place.
For its part, the European Commission (EC) issued a series of new economic forecasts that included 1.3% euro zone GDP growth, against a 1.9% November prediction.
The EC also reduced its expected euro zone CPI growth for 2019 and 2020, to 1.4% and 1.5% respectively.
This sparked a regional bonds sell-off, pushing yields higher.
US government bond prices rose for a third consecutive session however, pushing yields lower.
Also in the euro zone, a European Central Bank economic bulletin confirmed the central bank viewed a series of recent data as ‘weaker than expected’.
In the meantime, Germany’s December industrial production was reported to have declined by 0.4%, following forecasts of a 0.8% rise, and monthly falls since September.
In the US, weekly new unemployment claims dropped by 19,000, 13,000 more than forecast, to 234,000.
Consumer credit fell to $US16.55B during December, against $US22.41B at the end of November.
Tonight in the US, December wholesale inventories are due.
Elsewhere, Germany reports December trade statistics.
Companies scheduled to report earnings later today or tonight include: Hasbro, Isuzu Motors, Jaguar Land Rover, PG&E, Phillips 66 and Rinnai.
In overnight corporate news, US regional financial entities SunTrust and BB&T announced a $US66B 43:57 merger deal.
Twitter tumbled almost 10% after forecasting higher expenses.
Steel manufacturer ArcelorMittal revealed it expected 2019 steel demand growth to moderate to 0.5% - 1%, following 2.8% for 2018. Nonetheless the group announced a buy-back and 100% dividend boost.
The Renault – Nissan alliance appeared threatened, according to those who had viewed correspondence regarding former CEO Carlos Ghosn.