Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 01 Aug 2019
Local Markets Commentary
The Australian market opens a new month’s trade ahead of further China data late-morning, and a Bank of England policy meeting later today, with a US rate cut in hand.
Caixin is due to release its June manufacturing PMI for China 11.45am AEST.
Locally, the AiG is scheduled to publish its July manufacturing PMI pre-trade.
June quarter export and import prices are due from the Australian Bureau of Statistics (ABS) 11.30am AEST.
A July residential property price report is also expected from CoreLogic today.
Post-trade, the Reserve Bank of Australia (RBA) publishes its monthly commodity prices report.
In addition, Rio Tinto’s (ASX: RIO) interim report is anticipated later today.
In overnight commodities trade, oil extended this week’s gains.
US gold futures (December) turned lower.
Iron ore (Nymex CFR China, 62% Fe) continued to seesaw, this time losing US7c to remain just above US120.00/t.
LME copper settled almost flat. Nickel swung to a rally-mode gain.
The $A has dropped to ~US68.50c after appreciating to US68.95c early yesterday even
Caixin is due to release its June manufacturing PMI for China 11.45am AEST.
Locally, the AiG is scheduled to publish its July manufacturing PMI pre-trade.
June quarter export and import prices are due from the Australian Bureau of Statistics (ABS) 11.30am AEST.
A July residential property price report is also expected from CoreLogic today.
Post-trade, the Reserve Bank of Australia (RBA) publishes its monthly commodity prices report.
In addition, Rio Tinto’s (ASX: RIO) interim report is anticipated later today.
In overnight commodities trade, oil extended this week’s gains.
US gold futures (December) turned lower.
Iron ore (Nymex CFR China, 62% Fe) continued to seesaw, this time losing US7c to remain just above US120.00/t.
LME copper settled almost flat. Nickel swung to a rally-mode gain.
The $A has dropped to ~US68.50c after appreciating to US68.95c early yesterday even
Overseas Market Commentary
Major European equities markets vacillated in overnight sessions, amid key data releases and geopolitical agitation, and which concluded before the US Federal Reserve post-policy meeting announcement.
US equities traded steady until the announcement, which immediately swung major indices lower.
The US Federal Reserve decided on a 0.25% interest rate cut, citing international economic ‘uncertainties’, some associated with strained trade relations.
The decision to lower the headline figure to 2.25% was not unanimous however, with high-profile Kansas City Fed president Esther George and Boston Fed president Eric Rosengren voting to retain the status quo.
Chairman Jerome Powell appeared keen to point out the cut did not necessarily foreshadow a series of similar moves, describing the committee’s decision as an ‘adjustment’.
Geopolitical issues also remained forefront overnight.
North Korea had reportedly tested several missiles earlier yesterday, according to officials from South Korea.
China called for ‘integrity’ in US-China trade talks as high-level meetings appeared to conclude earlier than anticipated in Shanghai. The republic’s commerce ministry officially described the discussions as ‘candid’, ‘constructive’, ‘deep’ and highly effective’.
For its part, the US administration confirmed talks were expected to move to Washington sometime early September and that China would boost its US agricultural imports.
Germany effectively called out other nations in stating it could not back a naval protection scheme led by the US for the Strait of Hormuz, as it did not want to fuel tensions with Iran and believed military intervention would not deliver a solution.
Later, the US administration announced it had officially sanctioned Iran’s foreign minister who it asserted was primarily effecting the leader’s orders.
In US data releases, a private sector jobs report estimated 156,000 new jobs during July, against a revised 112,000 for June.
The July Chicago PMI dropped further into contraction mode, with a 44.4 reading against 49.7 for June.
Weekly mortgage applications fell for a third consecutive week, this time 1.4% on steady mean 4.08% 30-year mortgage rates.
Earlier, euro zone June quarter GDP growth was reported at 0.2% for the three months and 1.1% year-on-year, following respective 0.4% and 1.2% gains for the March quarter.
July CPI growth was estimated in a preliminary reading at 1.1% for the month, against 1.3% in June.
Meanwhile, Germany’s June retail sales encouraged, jumping 3.5% for the month after falling 1.7% in May.
Year-on-year, sales were 1.6% lower.
Tonight in the US, a job cuts report and weekly new unemployment claims are due, ahead of tomorrow night’s national employment figures. In addition, ISM’s manufacturing activity index for July, Markit’s final July manufacturing PMI and June construction spending are due.
Elsewhere, the Bank of England holds a policy meeting, from which firm comments are expected in response to increased broad agitation regarding likely UK-European Union separation scenarios.
Companies scheduled to report earnings later today and tonight include: ArcelorMittal, Archer Daniels Midland, AXA, Barclays, BMW, DuPont, General Motors, ING, Kellogg, Kraft Heinz, Marathon Petroleum, Mazda Motor, Merlin Entertainments, Motorola, Petrobras, Royal Dutch Shell, Rio Tinto, Siemens, Société Générale, Sojitz, Standard Chartered, United States Steel Corp, Veolia, Verizon, Yamaha and Yum! Brands.
In overnight corporate news, Samsung reported a 56% drop in June quarter profit, but this exceeded group guidance.
Credit Suisse grew June quarter profit by 45% (to 937M Swiss francs), surpassing expectations.
Chip manufacturer Advanced Micro Devices warned of weakening revenue due to reducing demand for gaming console chips, and was pushed 10% lower.
Apple appreciated 2% on its late-Tuesday report, which pleased with both profit and revenue plus majority divisional growth.
US equities traded steady until the announcement, which immediately swung major indices lower.
The US Federal Reserve decided on a 0.25% interest rate cut, citing international economic ‘uncertainties’, some associated with strained trade relations.
The decision to lower the headline figure to 2.25% was not unanimous however, with high-profile Kansas City Fed president Esther George and Boston Fed president Eric Rosengren voting to retain the status quo.
Chairman Jerome Powell appeared keen to point out the cut did not necessarily foreshadow a series of similar moves, describing the committee’s decision as an ‘adjustment’.
Geopolitical issues also remained forefront overnight.
North Korea had reportedly tested several missiles earlier yesterday, according to officials from South Korea.
China called for ‘integrity’ in US-China trade talks as high-level meetings appeared to conclude earlier than anticipated in Shanghai. The republic’s commerce ministry officially described the discussions as ‘candid’, ‘constructive’, ‘deep’ and highly effective’.
For its part, the US administration confirmed talks were expected to move to Washington sometime early September and that China would boost its US agricultural imports.
Germany effectively called out other nations in stating it could not back a naval protection scheme led by the US for the Strait of Hormuz, as it did not want to fuel tensions with Iran and believed military intervention would not deliver a solution.
Later, the US administration announced it had officially sanctioned Iran’s foreign minister who it asserted was primarily effecting the leader’s orders.
In US data releases, a private sector jobs report estimated 156,000 new jobs during July, against a revised 112,000 for June.
The July Chicago PMI dropped further into contraction mode, with a 44.4 reading against 49.7 for June.
Weekly mortgage applications fell for a third consecutive week, this time 1.4% on steady mean 4.08% 30-year mortgage rates.
Earlier, euro zone June quarter GDP growth was reported at 0.2% for the three months and 1.1% year-on-year, following respective 0.4% and 1.2% gains for the March quarter.
July CPI growth was estimated in a preliminary reading at 1.1% for the month, against 1.3% in June.
Meanwhile, Germany’s June retail sales encouraged, jumping 3.5% for the month after falling 1.7% in May.
Year-on-year, sales were 1.6% lower.
Tonight in the US, a job cuts report and weekly new unemployment claims are due, ahead of tomorrow night’s national employment figures. In addition, ISM’s manufacturing activity index for July, Markit’s final July manufacturing PMI and June construction spending are due.
Elsewhere, the Bank of England holds a policy meeting, from which firm comments are expected in response to increased broad agitation regarding likely UK-European Union separation scenarios.
Companies scheduled to report earnings later today and tonight include: ArcelorMittal, Archer Daniels Midland, AXA, Barclays, BMW, DuPont, General Motors, ING, Kellogg, Kraft Heinz, Marathon Petroleum, Mazda Motor, Merlin Entertainments, Motorola, Petrobras, Royal Dutch Shell, Rio Tinto, Siemens, Société Générale, Sojitz, Standard Chartered, United States Steel Corp, Veolia, Verizon, Yamaha and Yum! Brands.
In overnight corporate news, Samsung reported a 56% drop in June quarter profit, but this exceeded group guidance.
Credit Suisse grew June quarter profit by 45% (to 937M Swiss francs), surpassing expectations.
Chip manufacturer Advanced Micro Devices warned of weakening revenue due to reducing demand for gaming console chips, and was pushed 10% lower.
Apple appreciated 2% on its late-Tuesday report, which pleased with both profit and revenue plus majority divisional growth.