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Market Opener – 18 Oct 2019
Local Markets Commentary
The Australian market commences Friday trade ahead of a plethora of material data out of China, and with agreement between UK and EU negotiators on proposed arrangements governing the UK’s planned EU departure, plus a US-announced five-day Turkey ceasefire in northern Syria.
China is expected to publish September quarter GDP growth, January – September fixed asset investment, September industrial production and September retail sales 1pm AEDT.
Yesterday evening, China revealed a 6.5% year-on-year rise in January-September foreign direct investment (FDI), following 6.9% higher January-August FDI.
Also regionally today, Japan’s September CPI growth is anticipated 10.30am AEDT.
Locally today, no major domestic economic indicators are scheduled for release.
In overnight commodities trade, oil settled higher for a second consecutive session.
US gold futures (December) extended Wednesday’s gain a little.
Iron ore (Nymex CFR China, 62% Fe) continued to fall.
LME copper turned modestly higher. Nickel was pushed yet lower. Aluminium again settled little changed.
The $A appreciated further, to ~US68.25c, after rising beyond US68.05c early yesterday evening.
China is expected to publish September quarter GDP growth, January – September fixed asset investment, September industrial production and September retail sales 1pm AEDT.
Yesterday evening, China revealed a 6.5% year-on-year rise in January-September foreign direct investment (FDI), following 6.9% higher January-August FDI.
Also regionally today, Japan’s September CPI growth is anticipated 10.30am AEDT.
Locally today, no major domestic economic indicators are scheduled for release.
In overnight commodities trade, oil settled higher for a second consecutive session.
US gold futures (December) extended Wednesday’s gain a little.
Iron ore (Nymex CFR China, 62% Fe) continued to fall.
LME copper turned modestly higher. Nickel was pushed yet lower. Aluminium again settled little changed.
The $A appreciated further, to ~US68.25c, after rising beyond US68.05c early yesterday evening.
Overseas Market Commentary
Choppy trade featured at various times across major European and US equities markets overnight.
US data releases largely came in weaker-than-anticipated, and corporate earnings again proved decidedly mixed, but there was plenty more to consider.
European Union (EU) and UK negotiators announced agreement on arrangements for the UK’s planned EU departure, as a European Council forum commenced in Brussels.
Separately, the UK and EU parliaments must now approve the plans.
The UK parliament’s House of Commons will convene a special sitting tomorrow to consider the proposal.
The US administration subsequently announced a five-day northern Syria cease-fire had been agreed between Turkey and the US.
Earlier, a China commerce ministry spokesperson was reported to have confirmed a draft of a ‘phase one’ trade accord with the US, based on last week’s official talks, was being prepared. The spokesperson also asserted tariffs remained a sticking point ahead of any final trade agreement.
Among overnight data releases, UK September retail sales came in flat, following a 0.3% August fall.
Year-on-year, sales were 3.1% higher.
Euro zone August construction output rose 1.2% year-on-year, against 1.8% for July.
In the US, the Philadelphia Fed’s regional manufacturing index tumbled to 5.6 from 12.
September industrial production fell 0.4% for the month, following a 0.8% August improvement. The fall was in part attributed to industrial action within General Motors.
Compared with September 2018, overall September output slipped 0.1%.
Housing starts and building permits also disappointed, dropping 9.4% and 2.7% respectively, against 15.1% and 7.7% August gains.
Weekly new unemployment claims rose by 4000, following expectations of a 5000 decline.
Tonight in the US, the Conference Board’s leading index and a September national budget statement are due
The International Monetary Fund (IMF) and World Bank annual meetings will also attract attention in Washington, through Sunday.
Elsewhere, the European Council is scheduled to conclude its two-day forum.
Overnight criticism indicated the UK parliament would be unlikely to deliver a positive vote on the UK-EU separation plans tomorrow.
Companies scheduled to report earnings include American Express, BNP Paribas, China Citic Bank, Coca-Cola, Danone, General Electric, Reliance Industries and Schlumberger.
US data releases largely came in weaker-than-anticipated, and corporate earnings again proved decidedly mixed, but there was plenty more to consider.
European Union (EU) and UK negotiators announced agreement on arrangements for the UK’s planned EU departure, as a European Council forum commenced in Brussels.
Separately, the UK and EU parliaments must now approve the plans.
The UK parliament’s House of Commons will convene a special sitting tomorrow to consider the proposal.
The US administration subsequently announced a five-day northern Syria cease-fire had been agreed between Turkey and the US.
Earlier, a China commerce ministry spokesperson was reported to have confirmed a draft of a ‘phase one’ trade accord with the US, based on last week’s official talks, was being prepared. The spokesperson also asserted tariffs remained a sticking point ahead of any final trade agreement.
Among overnight data releases, UK September retail sales came in flat, following a 0.3% August fall.
Year-on-year, sales were 3.1% higher.
Euro zone August construction output rose 1.2% year-on-year, against 1.8% for July.
In the US, the Philadelphia Fed’s regional manufacturing index tumbled to 5.6 from 12.
September industrial production fell 0.4% for the month, following a 0.8% August improvement. The fall was in part attributed to industrial action within General Motors.
Compared with September 2018, overall September output slipped 0.1%.
Housing starts and building permits also disappointed, dropping 9.4% and 2.7% respectively, against 15.1% and 7.7% August gains.
Weekly new unemployment claims rose by 4000, following expectations of a 5000 decline.
Tonight in the US, the Conference Board’s leading index and a September national budget statement are due
The International Monetary Fund (IMF) and World Bank annual meetings will also attract attention in Washington, through Sunday.
Elsewhere, the European Council is scheduled to conclude its two-day forum.
Overnight criticism indicated the UK parliament would be unlikely to deliver a positive vote on the UK-EU separation plans tomorrow.
Companies scheduled to report earnings include American Express, BNP Paribas, China Citic Bank, Coca-Cola, Danone, General Electric, Reliance Industries and Schlumberger.