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Before making any investment decision, you should consult your adviser.
Market Opener – 13 Feb 2019
Local Markets Commentary
The Australian market opens mid-week trade with a major domestic bank trading ex-dividend, several large-cap domestic stocks reporting earnings, and a broad overnight international equities rally, ahead of influential data releases in the US and UK tonight.
US Federal Reserve chair Jerome Powell has this morning highlighted disparities in US regional economic growth.
In overnight commodities trade, oil and US gold futures (April) turned higher.
Iron ore (China port, 62% Fe) swung lower.
LME copper and other key base metals extended Monday’s falls.
The $A approached US71.0c after trading at ~US70.85c early yesterday evening.
Locally today, Westpac and the Melbourne Institute release their monthly consumer sentiment report 10.30am AEDT.
In addition, CBA, MLT and SCG trade ex-dividend today. Please see pp3-4 for details.
Overseas Market Commentary
Major European and US equities markets rallied from open overnight, early reports buoying hope for potential a US funding resolution and China trade agreement progress this week.
The FTSE fell notably however, remarks from the Bank of England governor, plus seemingly little progress on negotiations to deliver a palatable UK-European Union separation deal to parliament, dousing optimism.
Late Monday, a two-party agreement on a proposal regarding the release of further US budget funding through 30 September was declared.
The US president expressed his disapproval of it, but promised to study it, playing down the likelihood of a new partial government services shutdown from midnight Friday at the same time as blaming the Democrats should one eventuate.
Yesterday, the US trade delegation to Beijing did not respond to questions on their way to the second day of talks.
The US president however talked up progress, and said if a China trade deal was imminent come 1 March he could push back his deadline for increased taxes on imports from China.
The US treasury secretary and head trade representative are yet to arrive to join this week’s talks, however, suggesting they may not show should progress be deemed insufficient.
Bank of England governor Mark Carney publicly described his ‘judgment’ of global economic growth as at a ‘delicate equilibrium’ and predicted it would stabilise, albeit at a slower rate.
Among overnight data releases a US a December job openings report estimated an increase in opportunities to 7.34M from 7.17M in November.
A January small business optimism index was reported lower for a fifth consecutive month, at 101.2 from 104.4 in December.
A report from the Federal Reserve Bank of New York included a December quarter rise in household debt to a record $US13.5 trillion.
Federal Reserve chair Jerome Powell spoke publicly from the 15 minutes of US trade, confirming a broad view US regional economic growth had remained ’uneven’.
Tonight in the US, January CPI growth is due, together with weekly mortgage applications.
Elsewhere, the UK also reports January CPI and the euro zone December industrial production.
Companies scheduled to report earnings later today or tonight include: Akzo Nobel, AIG, Asics, Barrick Gold, Cisco Systems, Heineken (full year), JGC, Shire, Teva Pharmaceutical, Toshiba, Tullow Oil and Yelp.
In overnight corporate news, game publisher Activision Blizzard has reported post-US trade, revenue undershooting expectations and offering seemingly underwhelming guidance.
The Australian market opens mid-week trade with a major domestic bank trading ex-dividend, several large-cap domestic stocks reporting earnings, and a broad overnight international equities rally, ahead of influential data releases in the US and UK tonight.
US Federal Reserve chair Jerome Powell has this morning highlighted disparities in US regional economic growth.
In overnight commodities trade, oil and US gold futures (April) turned higher.
Iron ore (China port, 62% Fe) swung lower.
LME copper and other key base metals extended Monday’s falls.
The $A approached US71.0c after trading at ~US70.85c early yesterday evening.
Locally today, Westpac and the Melbourne Institute release their monthly consumer sentiment report 10.30am AEDT.
In addition, CBA, MLT and SCG trade ex-dividend today. Please see pp3-4 for details.
Overseas Market Commentary
Major European and US equities markets rallied from open overnight, early reports buoying hope for potential a US funding resolution and China trade agreement progress this week.
The FTSE fell notably however, remarks from the Bank of England governor, plus seemingly little progress on negotiations to deliver a palatable UK-European Union separation deal to parliament, dousing optimism.
Late Monday, a two-party agreement on a proposal regarding the release of further US budget funding through 30 September was declared.
The US president expressed his disapproval of it, but promised to study it, playing down the likelihood of a new partial government services shutdown from midnight Friday at the same time as blaming the Democrats should one eventuate.
Yesterday, the US trade delegation to Beijing did not respond to questions on their way to the second day of talks.
The US president however talked up progress, and said if a China trade deal was imminent come 1 March he could push back his deadline for increased taxes on imports from China.
The US treasury secretary and head trade representative are yet to arrive to join this week’s talks, however, suggesting they may not show should progress be deemed insufficient.
Bank of England governor Mark Carney publicly described his ‘judgment’ of global economic growth as at a ‘delicate equilibrium’ and predicted it would stabilise, albeit at a slower rate.
Among overnight data releases a US a December job openings report estimated an increase in opportunities to 7.34M from 7.17M in November.
A January small business optimism index was reported lower for a fifth consecutive month, at 101.2 from 104.4 in December.
A report from the Federal Reserve Bank of New York included a December quarter rise in household debt to a record $US13.5 trillion.
Federal Reserve chair Jerome Powell spoke publicly from the 15 minutes of US trade, confirming a broad view US regional economic growth had remained ’uneven’.
Tonight in the US, January CPI growth is due, together with weekly mortgage applications.
Elsewhere, the UK also reports January CPI and the euro zone December industrial production.
Companies scheduled to report earnings later today or tonight include: Akzo Nobel, AIG, Asics, Barrick Gold, Cisco Systems, Heineken (full year), JGC, Shire, Teva Pharmaceutical, Toshiba, Tullow Oil and Yelp.
In overnight corporate news, game publisher Activision Blizzard has reported post-US trade, revenue undershooting expectations and offering seemingly underwhelming guidance.