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Market Opener – 13 Nov 2018

 
Local Markets Commentary
The Australian market commences today’s trade on largely unsupportive overnight leads, international equities picking up the pace of Friday’s declines. 

In overnight commodities trade, oil settled lower. 

US (December) gold futures also continued to fall.

Iron ore (China port 62% Fe) swung lower.

LME copper settled slightly lower. Nickel and aluminium extended Friday’s falls.

The $A traded in a relatively narrow range after falling to ~US71.90c early yesterday evening, but has headed decisively lower again this morning.

Locally today, a weekly consumer sentiment reading is due pre-trade. 

NAB is due to release its closely-watched monthly business survey, 11.30am AEDT. 

The Australian Bureau of Statistics publishes September lending figures, also at 11.30am.

WBC is one of a trio of stocks trading ex-dividend, and IPL has released full year results pre-trade. Please see pp2-4 for detailed lists.

Meanwhile, an Association of Southeast Asian Nations (ASEAN) leaders’ summit commences in Singapore today.

The Asia Pacific Economic Cooperation (APEC) forum begins in Port Moresby, PNG Saturday.

Yesterday, China again spoke against ‘nationalism’ as premier Li Keqiang prepared to meet with ASEAN and APEC leaders and other representatives.

Overseas Market Commentary
Major European and US equities markets headed lower from open overnight, settling at or near session-lows amid reduced trade during the US Veterans’ Day commemorations. 

US officials appeared to disagree in the tone of their comments regarding US-China prospects for firm trade negotiations.

Across the Atlantic, reports emerged four additional UK government ministers were considering resigning, but a key European Union (EU) negotiator claimed a draft plan governing the UK-EU separation could be ready to provide to the UK cabinet as early as tonight.

Italy is due to re-present its proposed budget to the European Commission tonight, but reports also abounded that the government may hold out, making few if any adjustments. 

Among corporate and stock considerations, two tech sector component part manufacturers issued disappointing demand forecasts damaging select sentiment.

A US Federal Reserve regional president in the meantime noted relatively low workforce participation rates, due to a seemingly growing disparity between available skills and employer needs.

No major data releases were on hand and US bond markets did not trade due to Veterans’ Day.

Tonight in the US, a small business optimism index and monthly treasury budget figures are due.

A Federal Reserve official is scheduled to speak publicly on immigration and the economy.

Elsewhere, Euro Finance Week is underway in Kristianstad, Sweden, and is expected to deliver plenty of additional central banker commentary on a variety of international scenarios throughout the week.

Bayer, Home Depot, Noble Group, Premier Foods, San Miguel Corp, Singapore Airlines, Tyson Foods and Vodafone are among companies scheduled to report earnings.

In overnight corporate news, tech sector component makers Lumentum Holdings (facial recognition specialist) and Japan Display each reduced demand forecasts, pushing lower chip manufacturers and other component makers, particularly those servicing the hand-held device market. 

In the healthcare sector, a $US5.7B acquisition of software specialist Athenahealth was confirmed by Veritas Capital and Evergreen Coast Capital. 

Germany’s business software major SAP also acknowledged a weekend deal to outlay $US8B cash for Qualtrics International.
 
13/11/2018 7:05:00 AM

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