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Market Opener – 01 Oct 2019
Local Markets Commentary
The Australian market commences December quarter trade with China’s markets closed for a week, largely negative overnight commodities trade leads, a Reserve Bank of Australia (RBA) policy meeting and subsequent rates announcement this afternoon, and several material domestic reports due this morning.
In addition, RBA governor Philip Lowe will speak tonight at an RBA board and business sector dinner in Melbourne, 7.20pm AEST.
Dr Lowe is expected to expand on the post-policy meeting statement, which is due 2.30pm AEST.
Today’s domestic data releases include an AiG manufacturing activity index and CoreLogic September capital city residential property prices, pre-trade.
11.30am AEST, the Australian Bureau of Statistics (ABS) is due to report August building approvals.
Regionally, today marks the 70th anniversary of the founding of The People’s Republic of China.
Among regional data releases, Japan’s Tankan survey, a final September manufacturing PMI and employment statistics are anticipated this morning.
In overnight commodities trade, oil dropped.
US gold futures (December) fell, settling below $US1473/oz.
Iron ore (Nymex CFR China, 62% Fe) recouped US2c/t.
LME copper swung lower. Nickel and aluminium picked up the pace of Friday’s declines.
The $A effectively marked time after falling to ~US67.50c early yesterday evening.
China’s markets are closed from today through 7 October, due to the Autumn festival holiday season which includes China’s National Day (today).
In addition, RBA governor Philip Lowe will speak tonight at an RBA board and business sector dinner in Melbourne, 7.20pm AEST.
Dr Lowe is expected to expand on the post-policy meeting statement, which is due 2.30pm AEST.
Today’s domestic data releases include an AiG manufacturing activity index and CoreLogic September capital city residential property prices, pre-trade.
11.30am AEST, the Australian Bureau of Statistics (ABS) is due to report August building approvals.
Regionally, today marks the 70th anniversary of the founding of The People’s Republic of China.
Among regional data releases, Japan’s Tankan survey, a final September manufacturing PMI and employment statistics are anticipated this morning.
In overnight commodities trade, oil dropped.
US gold futures (December) fell, settling below $US1473/oz.
Iron ore (Nymex CFR China, 62% Fe) recouped US2c/t.
LME copper swung lower. Nickel and aluminium picked up the pace of Friday’s declines.
The $A effectively marked time after falling to ~US67.50c early yesterday evening.
China’s markets are closed from today through 7 October, due to the Autumn festival holiday season which includes China’s National Day (today).
Overseas Market Commentary
Major European and US equities markets mostly trended higher overnight to settle near session highs, but not so the UK’s FTSE.
Weekend comments out of China provided some encouragement to traders, the People’s Bank of China assuring it would ensure liquidity, and the vice commerce minister promoting China’s desire for ‘a calm and rational attitude’ in trade negotiations with the US.
Reports also emerged the UK PM would this week, and as early as tonight, deliver to European Union (EU) leaders an updated plan for arrangements governing the UK’s planned 31 October separation from the EU.
This was said to include an effectively borderless ‘economic zone’ across all of Ireland.
Overnight data releases included Germany’s initial September CPI reading which came in at nil growth for the month against 0.2% August deflation.
Annual September CPI growth came in at 1.2%.
The nation’s August retail sales heartened, rising 0.5% during the month, following a 0.8% July fall. Sales were 3.2% higher than for August 2018.
A euro zone August unemployment reading declined 0.1% to 7.4%.
Earlier in the UK, June quarter GDP was confirmed as representing a 0.2% contraction for the quarter. Year-on-year however, GDP grew 1.3%, following an earlier 1.2% estimate.
In the US, the September Chicago PMI dropped to a contractionary mode 47.1 from 50.4 in August.
The Dallas Fed manufacturing index fell to 1.5 from 2.7, although this had been expected to tumble into negative territory.
Tonight in the US, ISM’s September manufacturing sector activity index, Markit’s final September manufacturing PMI reading, and August construction spending are due.
Elsewhere, a euro zone CPI reading, plus manufacturing PMIs for the region and the UK, could also prove influential.
Weekend comments out of China provided some encouragement to traders, the People’s Bank of China assuring it would ensure liquidity, and the vice commerce minister promoting China’s desire for ‘a calm and rational attitude’ in trade negotiations with the US.
Reports also emerged the UK PM would this week, and as early as tonight, deliver to European Union (EU) leaders an updated plan for arrangements governing the UK’s planned 31 October separation from the EU.
This was said to include an effectively borderless ‘economic zone’ across all of Ireland.
Overnight data releases included Germany’s initial September CPI reading which came in at nil growth for the month against 0.2% August deflation.
Annual September CPI growth came in at 1.2%.
The nation’s August retail sales heartened, rising 0.5% during the month, following a 0.8% July fall. Sales were 3.2% higher than for August 2018.
A euro zone August unemployment reading declined 0.1% to 7.4%.
Earlier in the UK, June quarter GDP was confirmed as representing a 0.2% contraction for the quarter. Year-on-year however, GDP grew 1.3%, following an earlier 1.2% estimate.
In the US, the September Chicago PMI dropped to a contractionary mode 47.1 from 50.4 in August.
The Dallas Fed manufacturing index fell to 1.5 from 2.7, although this had been expected to tumble into negative territory.
Tonight in the US, ISM’s September manufacturing sector activity index, Markit’s final September manufacturing PMI reading, and August construction spending are due.
Elsewhere, a euro zone CPI reading, plus manufacturing PMIs for the region and the UK, could also prove influential.