Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 02 May 2019
Local Markets Commentary
The Australian market opens today’s trade on negative overnight US equities leads.
Most other key international equities market were closed yesterday and overnight, promoting uncertainty also across commodities markets.
Locally today, NAB has reported earnings. Other high-profile stocks are supplying updates and/or hosting AGMS.
Stocks trading ex-dividend today include API. Please see p4 for a detailed list.
In addition, a March new home sales report is scheduled by some economists for release.
In overnight commodities trade, Brent crude extended Tuesday’s gain a little. WTI was pushed lower.
US gold futures (June) turned to settle slightly lower, but fell further in post-settlement trade.
LME copper dropped. Aluminium swung higher.
The $A retreated to ~US70.20c after approaching US70.60c early yesterday evening.
Japan’s markets will remain closed for the remainder of the week, and Monday next week.
China’s markets are also closed through to the end of the week.
Most other key international equities market were closed yesterday and overnight, promoting uncertainty also across commodities markets.
Locally today, NAB has reported earnings. Other high-profile stocks are supplying updates and/or hosting AGMS.
Stocks trading ex-dividend today include API. Please see p4 for a detailed list.
In addition, a March new home sales report is scheduled by some economists for release.
In overnight commodities trade, Brent crude extended Tuesday’s gain a little. WTI was pushed lower.
US gold futures (June) turned to settle slightly lower, but fell further in post-settlement trade.
LME copper dropped. Aluminium swung higher.
The $A retreated to ~US70.20c after approaching US70.60c early yesterday evening.
Japan’s markets will remain closed for the remainder of the week, and Monday next week.
China’s markets are also closed through to the end of the week.
Overseas Market Commentary
UK and US equities markets opened higher overnight, but turned lower, the FTSE 100 in early trade and US indices late-session, amid fresh political tension, disappointing data releases, and the US Federal Reserve’s post-policy meeting statements.
This, in addition to speculation regarding the timing of any US—China trade agreement, and varied reactions to corporate reports.
Further, major mainland European markets and key Asian markets were closed overnight and yesterday.
During second-half US trade, the US Federal Reserve post-policy meeting statements highlighted slowing consumer and business spending, and a soft inflation recognition, but also underscored the policy committee’s views that the national economy was continuing to advance, and at a ‘solid’ rate.
Chairman Jerome Powell’s subsequent statements, including ‘transitory’ inflation weakness, and ‘no strong case’ for any rate range move, combined with a 0.05% Fed reduction in the excess reserves rate (to 2.35%), produced a sharp drop in (post-settlement) Comex gold futures and major US equities indices.
The US Senate had earlier quizzed the attorney general on his response to the Mueller report into alleged Russia interference in the 2016 US election process, as a letter surfaced from Mr Mueller criticising the attorney general’s March summary interpretation of his report.
In the UK, political tensions warmed with the PM and opposition leader promoting a possible agreement by next week on arrangements governing the planned UK withdrawal from the European Union.
In addition, the PM dismissed the defence secretary following a National Security Council leak investigation.
Among overnight data releases, the (US) ISM’s April manufacturing index pulled back 2.5 points to 52.8, the lowest reading in ~2.5 years.
This pushed the $US lower, although it recovered some during Federal Reserve chair Jerome Powell’s comments.
Drops in orders and employment components appeared to concern the most.
An employment report calculated that 275,000 private sector jobs had been created during April, however, following 151,000 in March.
March construction spending was estimated 0.9% lower, after rising 0.7% in February.
A final April Markit manufacturing PMI represented a 0.2 gain to 52.6.
Weekly new mortgage applications tumbled 4.3%, after dropping 4.7% the previous week, despite a 0.04% decrease in average 30-year mortgage rates.
Earlier in the UK, the April manufacturing PMI had been reported two points lower, at 53.1
In addition, Bank of England-calculated March consumer credit dropped to £549M from £1.229B.
Tonight in the US, March quarter productivity, the ISM’s April New York business activity index and March factory orders are due.
An April job cuts report and weekly new unemployment claims are also due, ahead of tomorrow night’s April national workforce statistics.
Elsewhere, the Bank of England holds a policy meeting, after which the bank will release minutes and the governor then hold a press conference.
The central bank will also release an inflation report.
Companies scheduled to report earnings later today or tonight include: Activision Blizzard, BNP Paribas, Carlsberg, Coca Cola Hellenic, Dow, ING, Kellogg, Lloyds, Motorola Solutions, Reckitt Benckiser, ResMed, Royal Dutch Shell, Teva Pharmaceutical, Volkswagen and Worldpay.
Unilever trades ex-dividend on the FTSE 100.
In overnight corporate news, Apple, which had reported post-Tuesday US trade, and promoted improving iPhone sales in China, while raising current quarter guidance, was pushed ~5% higher.
Chip manufacturer Advanced Micro Devices, which had also reported post-Tuesday US trade, was pushed lower on results considered lacklustre.
UK markets are heading towards a Monday public holiday weekend.
This, in addition to speculation regarding the timing of any US—China trade agreement, and varied reactions to corporate reports.
Further, major mainland European markets and key Asian markets were closed overnight and yesterday.
During second-half US trade, the US Federal Reserve post-policy meeting statements highlighted slowing consumer and business spending, and a soft inflation recognition, but also underscored the policy committee’s views that the national economy was continuing to advance, and at a ‘solid’ rate.
Chairman Jerome Powell’s subsequent statements, including ‘transitory’ inflation weakness, and ‘no strong case’ for any rate range move, combined with a 0.05% Fed reduction in the excess reserves rate (to 2.35%), produced a sharp drop in (post-settlement) Comex gold futures and major US equities indices.
The US Senate had earlier quizzed the attorney general on his response to the Mueller report into alleged Russia interference in the 2016 US election process, as a letter surfaced from Mr Mueller criticising the attorney general’s March summary interpretation of his report.
In the UK, political tensions warmed with the PM and opposition leader promoting a possible agreement by next week on arrangements governing the planned UK withdrawal from the European Union.
In addition, the PM dismissed the defence secretary following a National Security Council leak investigation.
Among overnight data releases, the (US) ISM’s April manufacturing index pulled back 2.5 points to 52.8, the lowest reading in ~2.5 years.
This pushed the $US lower, although it recovered some during Federal Reserve chair Jerome Powell’s comments.
Drops in orders and employment components appeared to concern the most.
An employment report calculated that 275,000 private sector jobs had been created during April, however, following 151,000 in March.
March construction spending was estimated 0.9% lower, after rising 0.7% in February.
A final April Markit manufacturing PMI represented a 0.2 gain to 52.6.
Weekly new mortgage applications tumbled 4.3%, after dropping 4.7% the previous week, despite a 0.04% decrease in average 30-year mortgage rates.
Earlier in the UK, the April manufacturing PMI had been reported two points lower, at 53.1
In addition, Bank of England-calculated March consumer credit dropped to £549M from £1.229B.
Tonight in the US, March quarter productivity, the ISM’s April New York business activity index and March factory orders are due.
An April job cuts report and weekly new unemployment claims are also due, ahead of tomorrow night’s April national workforce statistics.
Elsewhere, the Bank of England holds a policy meeting, after which the bank will release minutes and the governor then hold a press conference.
The central bank will also release an inflation report.
Companies scheduled to report earnings later today or tonight include: Activision Blizzard, BNP Paribas, Carlsberg, Coca Cola Hellenic, Dow, ING, Kellogg, Lloyds, Motorola Solutions, Reckitt Benckiser, ResMed, Royal Dutch Shell, Teva Pharmaceutical, Volkswagen and Worldpay.
Unilever trades ex-dividend on the FTSE 100.
In overnight corporate news, Apple, which had reported post-Tuesday US trade, and promoted improving iPhone sales in China, while raising current quarter guidance, was pushed ~5% higher.
Chip manufacturer Advanced Micro Devices, which had also reported post-Tuesday US trade, was pushed lower on results considered lacklustre.
UK markets are heading towards a Monday public holiday weekend.