Research

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Market Opener - 16 Mar 2017

 
Local Markets Commentary

The Australian market opens today’s trade on positive international equities and commodities leads, ahead of a domestic employment report and central bank bulletin.

In addition, results are expected to confirm the ruling centre-right party will remain the dominant parliamentary force following the well-supported overnight national election in the Netherlands.

Regionally, the Bank of Japan is expected to announce outcomes from its policy meeting ~1pm AEDST.

Locally today, the February employment report, as compiled by the Australian Bureau of Statistics (ABS), is due 11.30am AEDST.

In addition, the Reserve Bank of Australia (RBA) publishes a quarterly bulletin.

A swag of stocks also trades ex-dividend today. Please see p3 for a detailed list.

In overnight commodities trade, US gold futures and oil swung higher. LME copper continued to appreciate. Iron ore extended the previous session’s gains, rallying beyond $US90/t again.

The $A was propelled to ~US77.0c after being pushed to ~US75.85c yesterday evening.

Meanwhile, Japan’s markets are heading for a Monday public holiday long weekend.

Overseas Market Commentary

Major European and US equities markets gained on opening overnight, US indices rising sharply in afternoon trade on the US Federal Reserve rate rise announcement.

The central bank raised its overnight interest rate 0.25%, as anticipated, to a 0.75% - 1.00% range.

Further, the bank reaffirmed another likely two rises before year’s end and said it expected three moves higher in 2018.

The $US index subsequently fell 1.2%, due to the forecast of gradual increases, rather than an acceleration.

Meanwhile, early indications from the Netherlands national election suggested the ruling centre-right party would remain the dominant party in the new government. More than 80% voter turnout was reported.

In US data releases, February CPI was reported 0.1% higher for the month, and 2.7% higher year-on-year. January’s respective figures had come in at 0.6% and 2.5%.

February retail sales grew the least in six months, in part attributed to delays in issuing tax refunds.

A home builders’ sentiment rose six points to 71 following expectations of a flat result.

In the UK, average weekly earnings disappointed, rising 2.3% on an annual basis for the January quarter, against 2.6% during the December quarter, and following forecasts of a 2.5% improvement.

The self-employed benefited however, after plans for a targeted insurance increase, announced in last week’s budget, were scrapped.

Tonight in the US, weekly new unemployment claims are due.

The Bank of England holds a policy meeting two days after a deputy governor resigned on an adverse government agency report.

Adobe Systems, Dollar General and J Sainsbury (Sainsbury’s UK supermarket chain) are due to release results and/or an update.

In overnight corporate news, four people were charged in relation

 
16/03/2017 6:54:38 AM

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