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Market Opener – 14 Nov 2018

 
Local Markets Commentary
The Australian market opens mid-week trade ahead of a plethora of key regional and domestic data today and out of the US, euro zone and UK tonight, and following plenty of material overnight northern hemisphere geopolitical news. 

In addition, post-ASX trade yesterday, China reported October new lending had fallen to 697B yuan, from 1380B yuan in September.

Regionally today, China’s October industrial production, fixed asset investment and retail sales figures are expected 1pm AEDT.

Japan releases September quarter CPI growth 10.50am AEDT.

Locally today, the September quarter wages price index is due 11.30am AEDT.

Westpac and the Melbourne Institute publish a monthly consumer confidence report, 10.30am.

An employment indicator is due this afternoon, ahead of tomorrow’s national October jobs and wages statistics.

In mixed overnight commodities trade, oil slumped. 

US (December) gold futures settled slightly lower.

Iron ore (China port 62% Fe) continued lower, but more moderately so.

LME copper closed moderately higher. Nickel and aluminium declined further.

The $A appreciated to ~US72.15c after trading at US72.0c early yesterday evening.

Regional and domestic commentary is anticipated out of the Association of Southeast Asian Nations (ASEAN) leaders’ summit and associated meetings continuing in Singapore today.

Overseas Market Commentary
Choppy, swinging trade featured across most major European and US equities markets overnight, amid a series of geopolitical news releases, slumping oil prices and swinging currencies. 

US officials again presented proposed late-month top-level US-China trade talks in differing hues, one promoting progress and another threatening further adverse action should China not ‘change posture’, including with increased concessions. 

Meanwhile, China reported its chief trade negotiator would likely visit Washington in preparation for the planned leaders’ talks at the G20 forum in Argentina.

Earlier, the UK and European Union heralded an agreed, conditional draft plan governing the UK-EU separation. This will be considered by UK government cabinet members from 2pm today UK time. 

As Italy prepared to re-present its proposed budget to the European Commission by last night’s deadline, the International Monetary Fund (IMF) warned the original stimulus-based plan could produce a domestic recession. 

Among data releases, Germany’s final October CPI growth (non-harmonised) came in at 2.5% following 2.3% for September. For the month, inflation rose 0.2%, against 0.4% in September. 

An economic sentiment index improved to -24.1 from -24.7.

For the euro zone as a whole, the index fell to -22 from -19.4.

In the UK, September wages, excluding bonuses, grew 3.2% on average following a 3.1% rise in August.

October unemployment claims grew by 20,200, following a 23,200 September rise.

The September unemployment rate rose to 4.1% from 4% in August.

Tonight in the US, an October CPI reading is keenly anticipated. Weekly mortgage applications are also expected.

Cisco Systems, E.ON, US department store Macy’s and RWE are among companies scheduled to report earnings or provide updates.
 
14/11/2018 7:00:00 AM

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