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State One Market Opener - 08 Aug 2016


Local Markets Commentary

The Australian market opens a new week’s trade on a mix of positive international equities leads, varied commodities leads and key regional reports.

China releases detailed July trade statistics midday AEST. FDI figures are also likely.

Yesterday, July foreign reserves were reported to have fallen to $US3.20 trillion, from $US3.21 trillion in June, on par with forecasts.

The Bank of Japan releases an opinions report pre-ASX trade, simultaneously with the publication of June balance of payments 9.50am AEST.

In overnight Friday commodities trade, gold swung lower. Oil settled modestly lower. Copper fell further. Iron ore turned higher again, to trade at three-month peaks.

The $A fell to ~US76.20c, and has depreciated further this morning, after trading beyond US76.54c early Friday evening.

Locally today, ANZ is due to publish its monthly job advertisements report 11.30am.

CPI and PPI figures are expected out of China tomorrow.

Overseas Market Commentary

Major European and US equities markets rallied overnight Friday, sentiment buoyed by strong jobs growth in the US, and stimulus support for the UK as it prepares to go it alone from the European Union.

According to a national monthly employment report, 255,000 jobs were created in the US during July, following 292,000 in June. Hourly wages grew by US8c and unemployment remained at 4.9%, against expectations of a slip to 4.8%.

Meanwhile, the national June trade deficit rose to a 10-month peak, partly on higher fuel costs and $US strength.

Germany’s June industrial orders surprised on the downside, falling 0.4% against expectations of a 0.6% improvement following a flat May.

In the UK, the Halifax house price index fell 1% during July following a 1.3% June rise. For the three months to the end of July, prices gained 8.4% year-on-year.

Tonight in the US, a Federal Reserve employment market conditions report is due.

Companies scheduled to report earnings include: Allergan, News Corporation, Hertz and Tyson Foods (McDonald’s, KFC supplier).

Overnight Friday, the Royal Bank of Scotland reported a £2B interim loss.

Kraft Heinz appreciated 4% on better-than-anticipated profit.

Microsoft confirmed it was acquiring LinkedIn, for $US26.2B.

Later in the weekend, Berkshire Hathaway revealed 25% higher quarterly profit.

8/08/2016 7:43:02 AM

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