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Market Opener - 15 Feb 2017

Local Markets Commentary

The Australian market opens amid a swag of high-profile domestic earnings reports, following mixed overnight international equities and commodities leads.

In overnight commodities trade, US gold futures settled slightly lower. Oil turned higher. Copper fell. Iron ore pulled back.

The $A was again pushed lower after trading at ~US76.80c early yesterday evening, but has turned higher this morning.

Locally today, a monthly consumer confidence report, January new vehicle sales and an employment indicator are due.

China’s January FDI report is anticipated 1pm AEDST.

Overseas Market Commentary

Major European equities markets chopped and swung through overnight trade. US indices recovered from a shaky start, supported by the finance sector.

US Federal Reserve chair Janet Yellen told a Senate banking committee that a rate rise was possible soon but that as ever, policy would be set on economic progress and any fiscal policy change.

Meanwhile, January producer prices were reported to have risen 0.6% for the month and 1.6% year-on-year.

In the euro zone December quarter GDP was revised from 0.5% to 0.4% in a final estimate.

December industrial production fell 1.6% for the month but rose 2% year-on-year.

UK December CPI growth rose to 1.8% year-on-year from 1.6% in December, largely boosted by energy prices. However, clothing prices helped drag the monthly rate to -0.5%.

Greece revealed a surprise 0.4% GDP pullback for the December quarter.

Italy, in the meantime, was reported to be looking at a possible €5B regional bank sector bailout.

Tonight in the US, Federal Reserve chair Janet Yellen meets with a House finance committee following last night’s session with the Senate banking committee, and like with that committee, as scheduled bi-annually.

A plethora of data releases is also expected, including January CPI, retail sales, industrial production, December business inventories, New York region manufacturing activity and housing market indices, plus weekly mortgage applications.

PepsiCo is among companies scheduled to report tonight.

In overnight corporate news, Rolls-Royce reported a record £4.6B full-year loss.

A Credit Suisse update appeared to please, supporting early European trade. However, the bank also reported a Swiss franc 2.35B ($US2.4B) 2016 loss, impacted mostly by a $US5.3B US penalty.

Earlier, Toshiba’s chairman resigned. The company had previously delayed reporting estimated full-year (to 31 March) results, but yesterday revealed an expected 390B¥ (US3.4B) loss, mostly due to nuclear energy projects in the US.

Peugeot announced it was interested in purchasing General Motors’ European Opel business. Peugeot already jointly manufactures SUVs and vans with General Motors.

Meanwhile, Apple continued to a new record peak price.

15/02/2017 6:49:01 AM

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