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Market Opener – 26 Jul 2018
Local Markets Commentary
The Australian market commences today’s trade on mixed overnight international trade leads, amid a swag of reports from large-cap domestic stocks.
In overnight commodities trade, oil extended Tuesday’s gains.
US gold futures headed higher.
Iron ore (China port, 62% Fe) turned again to post a gain.
LME copper settled almost flat. Aluminium swung lower.
The $A appreciated to ~US74.50c after trading at ~US74.20c early yesterday evening.
Locally today, June quarter export and import prices are due 11.30am AEST.
Overseas Market Commentary
Major European equities markets generally opened lower overnight, before declining further amid a deluge of corporate earnings reports and while waiting for a statement from trade talks in Washington between the European Commissioner’s president and the US president.
Major US indices mostly meandered before jumping in the last half hour of trade, on reports, since confirmed, that the US and EU had progressed trade discussions towards a potential deal for industrial goods.
Vehicles were excluded from the potential removal of trade taxes, subsidies and barriers.
Earlier, the EU’s trade commissioner said the EU was listing possible new import taxes on up to $US20B worth of US goods, to counter US tariffs on metals, and a proposed new tax on vehicles, imported from the EU.
In new US economic releases, June new home sales dropped 5.3% during the month, following forecasts of an ~3% fall.
In Germany, IFO’s business climate index came in at 101.7 from 101.8 in June. Expectations slipped to 98.2 from 98.5, however.
Meanwhile in Iran, the central bank governor was pushed from his job.
Tonight in the US, weekly new jobless claims are due, together with June durable goods orders, June wholesale inventories and a regional manufacturing index.
Elsewhere, the European Central Bank convenes a policy meeting in Frankfurt, after which it will release a statement and host a press conference
Another avalanche of corporate earnings and update reports is due later today and tonight. Companies due to report include: Airbus, Amazon, Amgen, Anheuser-Busch Inbev, Allergan, Anglo American, AstraZeneca, Banco Santander, Bristol-Meyers Squibb, Comcast, ConocoPhillips, Daimler, Diageo, Hyundai Motor, Intel, Johnson Matthey, Mastercard, McDonald’s, Nestlé, Nissan Motor, Nokia, Raytheon, Royal Dutch Shell, Singapore Airlines, Spotify, Starbucks and Total.
In overnight corporate news, General Motors revealed it had lowered its 2018 profit forecast due to increased input costs directly related to higher taxes on goods imported into the US. GM was pushed ~4% lower ahead of tonight’s scheduled earnings report.
Fiat Chrysler dropped ~10% on earnings which undershot industry forecasts. In addition, the group announced the death of its respected long-term CEO who had just recently stepped down due to illness.
Boeing’s margin and full-year profit guidance disappointed.
Meanwhile, Coca-Cola bubbled 2% higher despite an 8% revenue drop (to $US8.9B), as this proved less than feared.
Facebook reported post-US trade, post-settlement prices falling up to 20% after-hours on lower-than-expected revenue and fewer active users. This is expected to impact at least some of tonight’s sentiment.
The Australian market commences today’s trade on mixed overnight international trade leads, amid a swag of reports from large-cap domestic stocks.
In overnight commodities trade, oil extended Tuesday’s gains.
US gold futures headed higher.
Iron ore (China port, 62% Fe) turned again to post a gain.
LME copper settled almost flat. Aluminium swung lower.
The $A appreciated to ~US74.50c after trading at ~US74.20c early yesterday evening.
Locally today, June quarter export and import prices are due 11.30am AEST.
Overseas Market Commentary
Major European equities markets generally opened lower overnight, before declining further amid a deluge of corporate earnings reports and while waiting for a statement from trade talks in Washington between the European Commissioner’s president and the US president.
Major US indices mostly meandered before jumping in the last half hour of trade, on reports, since confirmed, that the US and EU had progressed trade discussions towards a potential deal for industrial goods.
Vehicles were excluded from the potential removal of trade taxes, subsidies and barriers.
Earlier, the EU’s trade commissioner said the EU was listing possible new import taxes on up to $US20B worth of US goods, to counter US tariffs on metals, and a proposed new tax on vehicles, imported from the EU.
In new US economic releases, June new home sales dropped 5.3% during the month, following forecasts of an ~3% fall.
In Germany, IFO’s business climate index came in at 101.7 from 101.8 in June. Expectations slipped to 98.2 from 98.5, however.
Meanwhile in Iran, the central bank governor was pushed from his job.
Tonight in the US, weekly new jobless claims are due, together with June durable goods orders, June wholesale inventories and a regional manufacturing index.
Elsewhere, the European Central Bank convenes a policy meeting in Frankfurt, after which it will release a statement and host a press conference
Another avalanche of corporate earnings and update reports is due later today and tonight. Companies due to report include: Airbus, Amazon, Amgen, Anheuser-Busch Inbev, Allergan, Anglo American, AstraZeneca, Banco Santander, Bristol-Meyers Squibb, Comcast, ConocoPhillips, Daimler, Diageo, Hyundai Motor, Intel, Johnson Matthey, Mastercard, McDonald’s, Nestlé, Nissan Motor, Nokia, Raytheon, Royal Dutch Shell, Singapore Airlines, Spotify, Starbucks and Total.
In overnight corporate news, General Motors revealed it had lowered its 2018 profit forecast due to increased input costs directly related to higher taxes on goods imported into the US. GM was pushed ~4% lower ahead of tonight’s scheduled earnings report.
Fiat Chrysler dropped ~10% on earnings which undershot industry forecasts. In addition, the group announced the death of its respected long-term CEO who had just recently stepped down due to illness.
Boeing’s margin and full-year profit guidance disappointed.
Meanwhile, Coca-Cola bubbled 2% higher despite an 8% revenue drop (to $US8.9B), as this proved less than feared.
Facebook reported post-US trade, post-settlement prices falling up to 20% after-hours on lower-than-expected revenue and fewer active users. This is expected to impact at least some of tonight’s sentiment.