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Before making any investment decision, you should consult your adviser.
Market Opener – 14 Jan 2019
Local Markets Commentary
The Australian market commences a new week’s trade ahead of influential data out of China today, following an overnight Friday oil price retreat and relatively sluggish international equities sentiment.
China is expected to report December trade statistics 2pm AEDT.
Locally today, weekly capital city residential property prices are due pre-trade.
A monthly inflation gauge report from TD Securities and the Melbourne Institute is scheduled for release 11am AEDT.
In overnight Friday commodities trade, oil swung lower.
Iron ore (China port 62% Fe fines) turned slightly higher.
US (February) gold futures recovered from Thursday’s push lower to settle essentially flat.
LME copper traded slightly higher. Nickel rallied. Aluminium turned and fell.
The $A traded in a narrow range after appreciating to ~US72.15c early Friday evening.
Japan’s markets will be closed today, due to a public holiday.
Overseas Market Commentary
US equities markets opened lower overnight, but in choppy trade generally trended higher to settle at or near session peaks.
Major European indices had opened higher, but were ultimately dragged down by disappointing data from the UK and US, falling oil prices and generally weaker US equities sentiment.
In addition, earlier Friday, China was reported to be preparing to officially revise its annual growth target from ~6.5% to 6% - 6.5%.
Further, the China Banking and Insurance Regulatory Commission confirmed the bad loan tally for commercial banks had reached two trillion yuan (~$US296.5B) in 2018, representing a ratio of 1.89%, the highest in a decade.
Commission personnel sought to reassure, however, asserting non-performing loan disposal rates had picked up and that risk was ‘generally’ under control.
In overnight Friday data releases, US December CPI was estimated to have declined 0.1% for the month, following a flat result for November.
Year-on-year, inflation came in 1.9% higher, against November’s 2.2%.
None of the figures surprised, and supported the Federal Reserve’s recent ‘patience on future rate rises’ stance, but nonetheless were considered uninspiring against a backdrop of uncertain global economic growth.
Earlier, UK November GDP was estimated to have grown 0.2% for the month following a 0.1% October gain. Year-on-year, GDP fell 1.4%.
November industrial production was reported 0.4% lower for the month and down 1.5% year-on-year, following respective 0.6% and 0.9% October declines.
Construction output rose 3% year-on-year following a 3.8% October increase.
The November trade deficit was estimated at £2.904B against £3.037B at the end of October.
Meanwhile, a partner in Greece’s coalition government signalled it was pulling out of the coalition, consequently triggering expectations of a confidence vote in the PM this week.
Tonight in the US, November trade balance and new home sales are among a batch of data scheduled for release, including some reports held over due to the US government services partial shutdown.
Elsewhere, a euro zone industrial production update will attract more attention than usual, due to China and Us trade figures, also anticipated today and tonight, and likely to influence global economic growth views.
In addition, ahead of an expected vote in the UK parliament tomorrow on arrangements for withdrawing from the European Union (EU), further speculation and debate is expected regarding a possible pushing back of the previously determined March separation date.
Citigroup and JD Sports are among companies expected to report earnings or provide trading updates, as December quarter reporting season commences for larger US stocks.
In overnight Friday corporate news, General Motors appreciated ~7% after lifting 2019 profit guidance and revealing 2018 earnings wold likely come in higher than initially anticipated.
Netflix appreciated 4%, this mostly attributed to a UBS analyst’s buy recommendation, plus Credit Suisse raising its Netflix December quarter subscriber prediction.
Apple’s pre-loved iPhones were reported to be selling at significantly reduced prices in China.
The Australian market commences a new week’s trade ahead of influential data out of China today, following an overnight Friday oil price retreat and relatively sluggish international equities sentiment.
China is expected to report December trade statistics 2pm AEDT.
Locally today, weekly capital city residential property prices are due pre-trade.
A monthly inflation gauge report from TD Securities and the Melbourne Institute is scheduled for release 11am AEDT.
In overnight Friday commodities trade, oil swung lower.
Iron ore (China port 62% Fe fines) turned slightly higher.
US (February) gold futures recovered from Thursday’s push lower to settle essentially flat.
LME copper traded slightly higher. Nickel rallied. Aluminium turned and fell.
The $A traded in a narrow range after appreciating to ~US72.15c early Friday evening.
Japan’s markets will be closed today, due to a public holiday.
Overseas Market Commentary
US equities markets opened lower overnight, but in choppy trade generally trended higher to settle at or near session peaks.
Major European indices had opened higher, but were ultimately dragged down by disappointing data from the UK and US, falling oil prices and generally weaker US equities sentiment.
In addition, earlier Friday, China was reported to be preparing to officially revise its annual growth target from ~6.5% to 6% - 6.5%.
Further, the China Banking and Insurance Regulatory Commission confirmed the bad loan tally for commercial banks had reached two trillion yuan (~$US296.5B) in 2018, representing a ratio of 1.89%, the highest in a decade.
Commission personnel sought to reassure, however, asserting non-performing loan disposal rates had picked up and that risk was ‘generally’ under control.
In overnight Friday data releases, US December CPI was estimated to have declined 0.1% for the month, following a flat result for November.
Year-on-year, inflation came in 1.9% higher, against November’s 2.2%.
None of the figures surprised, and supported the Federal Reserve’s recent ‘patience on future rate rises’ stance, but nonetheless were considered uninspiring against a backdrop of uncertain global economic growth.
Earlier, UK November GDP was estimated to have grown 0.2% for the month following a 0.1% October gain. Year-on-year, GDP fell 1.4%.
November industrial production was reported 0.4% lower for the month and down 1.5% year-on-year, following respective 0.6% and 0.9% October declines.
Construction output rose 3% year-on-year following a 3.8% October increase.
The November trade deficit was estimated at £2.904B against £3.037B at the end of October.
Meanwhile, a partner in Greece’s coalition government signalled it was pulling out of the coalition, consequently triggering expectations of a confidence vote in the PM this week.
Tonight in the US, November trade balance and new home sales are among a batch of data scheduled for release, including some reports held over due to the US government services partial shutdown.
Elsewhere, a euro zone industrial production update will attract more attention than usual, due to China and Us trade figures, also anticipated today and tonight, and likely to influence global economic growth views.
In addition, ahead of an expected vote in the UK parliament tomorrow on arrangements for withdrawing from the European Union (EU), further speculation and debate is expected regarding a possible pushing back of the previously determined March separation date.
Citigroup and JD Sports are among companies expected to report earnings or provide trading updates, as December quarter reporting season commences for larger US stocks.
In overnight Friday corporate news, General Motors appreciated ~7% after lifting 2019 profit guidance and revealing 2018 earnings wold likely come in higher than initially anticipated.
Netflix appreciated 4%, this mostly attributed to a UBS analyst’s buy recommendation, plus Credit Suisse raising its Netflix December quarter subscriber prediction.
Apple’s pre-loved iPhones were reported to be selling at significantly reduced prices in China.