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Market Opener – 02 July 2018
Local Markets Commentary
The Australian market opens a new week’s trade, on the first trading day of the financial year, with a swag of domestic data ahead of a Reserve Bank of Australia (RBA) policy meeting tomorrow, and influential indicators from China.
Over the weekend, China’s National Bureau of Statistics released a 51.5 manufacturing PMI and 55.0 for the services sector, following respective 51.9 and 54.9 figures for May.
Regionally today, Caixin publishes its June China manufacturing PMI 11.45am AEST.
One for Japan is expected 10.30am, and Tankan large manufacturers and all-of-business outlook indices at 9.50am.
Locally today, the Melbourne Institute publishes its June inflation report and the ANZ June job advertisements (11.30am AEST).
Two reports are due pre-trade, one from AiG regarding June manufacturing sector activity and the other from CoreLogic, containing June’s, and also last week’s, capital city residential property prices.
Overnight Friday international equities trade proved largely lacklustre.
In commodities trade, oil was pushed yet higher.
US gold futures turned and settled moderately higher.
Iron ore (China port, 62% Fe) rallied.
LME copper settled little changed. Nickel swung higher. Aluminium fell further.
The $A was pushed beyond US74.00c after appreciating to US73.95c early Friday evening.
Overseas Market Commentary
Major European and US equities markets opened higher overnight Friday, but US indices noticeably pulled back in the last hour of trade amid rallies for the euro and British pound against the $US.
Among a clutch of key economic indicator releases, the euro zone’s initial year-on-year June CPI reading indicated 2.0% growth against 1.9% for May. Core inflation rose 1.0% against 1.1%.
In Germany, import prices rose 1.6% during May, to be 3.2% higher than a year ago.
May retail sales fell 2.1% for the month and were 1.6% lower year-on-year.
The UK’s final March quarter GDP growth was calculated at 0.2% for the three months, following an earlier 0.1% estimate, but against 0.4% for the December quarter 2017.
Year-on-year, growth stood at 1.2%, against 1.3%.
The upward revision helped push the British pound 0.8% higher than the $US, given recent Bank of England indications that a second-half 2018 rate rise remained under consideration.
Among US data releases, the Chicago PMI pleased, coming in at 64.1, from 62.7 in May and following forecasts of a pullback to 60.0.
May consumer income and spending disappointed, in particular following last week’s final March quarter GDP reading, income rising 0.4% for the month, after a 0.2% rise April.
Spending rose just 0.2% following a 0.5% improvement during April.
May PCE, or underlying inflation, was estimated 2.3% higher year-on-year, and core PCE 2.0% (the highest in six years), following respective 2.0% and 1.8% April readings.
The University of Michigan in the meantime calculated a final 98.2 for June consumer confidence, undershooting both expectations and the May reading by a point.
Tonight in the US, ISM’s June manufacturing index, Markit’s equivalent, and May construction spending are due.
In overnight Friday corporate news, Nike’s Thursday post-US quarterly results, plus positive revenue and margin outlooks, boosted the stock ~11%.
Liquor maker Constellation Brands (includes Corona) was pushed 5% lower after undershooting forecasts.
The US commences an interrupted week’s trade tonight, due to Wednesday’s Independence Day holiday.
The Australian market opens a new week’s trade, on the first trading day of the financial year, with a swag of domestic data ahead of a Reserve Bank of Australia (RBA) policy meeting tomorrow, and influential indicators from China.
Over the weekend, China’s National Bureau of Statistics released a 51.5 manufacturing PMI and 55.0 for the services sector, following respective 51.9 and 54.9 figures for May.
Regionally today, Caixin publishes its June China manufacturing PMI 11.45am AEST.
One for Japan is expected 10.30am, and Tankan large manufacturers and all-of-business outlook indices at 9.50am.
Locally today, the Melbourne Institute publishes its June inflation report and the ANZ June job advertisements (11.30am AEST).
Two reports are due pre-trade, one from AiG regarding June manufacturing sector activity and the other from CoreLogic, containing June’s, and also last week’s, capital city residential property prices.
Overnight Friday international equities trade proved largely lacklustre.
In commodities trade, oil was pushed yet higher.
US gold futures turned and settled moderately higher.
Iron ore (China port, 62% Fe) rallied.
LME copper settled little changed. Nickel swung higher. Aluminium fell further.
The $A was pushed beyond US74.00c after appreciating to US73.95c early Friday evening.
Overseas Market Commentary
Major European and US equities markets opened higher overnight Friday, but US indices noticeably pulled back in the last hour of trade amid rallies for the euro and British pound against the $US.
Among a clutch of key economic indicator releases, the euro zone’s initial year-on-year June CPI reading indicated 2.0% growth against 1.9% for May. Core inflation rose 1.0% against 1.1%.
In Germany, import prices rose 1.6% during May, to be 3.2% higher than a year ago.
May retail sales fell 2.1% for the month and were 1.6% lower year-on-year.
The UK’s final March quarter GDP growth was calculated at 0.2% for the three months, following an earlier 0.1% estimate, but against 0.4% for the December quarter 2017.
Year-on-year, growth stood at 1.2%, against 1.3%.
The upward revision helped push the British pound 0.8% higher than the $US, given recent Bank of England indications that a second-half 2018 rate rise remained under consideration.
Among US data releases, the Chicago PMI pleased, coming in at 64.1, from 62.7 in May and following forecasts of a pullback to 60.0.
May consumer income and spending disappointed, in particular following last week’s final March quarter GDP reading, income rising 0.4% for the month, after a 0.2% rise April.
Spending rose just 0.2% following a 0.5% improvement during April.
May PCE, or underlying inflation, was estimated 2.3% higher year-on-year, and core PCE 2.0% (the highest in six years), following respective 2.0% and 1.8% April readings.
The University of Michigan in the meantime calculated a final 98.2 for June consumer confidence, undershooting both expectations and the May reading by a point.
Tonight in the US, ISM’s June manufacturing index, Markit’s equivalent, and May construction spending are due.
In overnight Friday corporate news, Nike’s Thursday post-US quarterly results, plus positive revenue and margin outlooks, boosted the stock ~11%.
Liquor maker Constellation Brands (includes Corona) was pushed 5% lower after undershooting forecasts.
The US commences an interrupted week’s trade tonight, due to Wednesday’s Independence Day holiday.