Research

Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.

Market Opener - 19 Jan 2017

 
Local Markets Commentary

The Australian market opens on mostly lacklustre international equities leads.

In overnight commodities trade, gold continued lower and oil turned so. LME copper turned higher, but not COMEX trade. Iron ore (China port, 62% Fe) swung higher again.

The $A fell after trading at ~US75.40c yesterday evening.

Locally today, the ABS releases December employment figures 11.30am AEDST.

The Melbourne Institute also publishes a monthly inflation expectations report this morning. The Reserve Bank of Australia (RBA) releases forex figures.

China’s December quarter GDP, plus December industrial production, fixed assets investment and retail sales are anticipated tomorrow.

Overseas Market Commentary

Major European and US equities markets chopped and swung their way through last night’s respective trade sessions.

US Federal Reserve chair Janet Yellen predicted domestic rates would reach 3% by late 2019, following a few rises each year.

Also in the US, December CPI growth was reported at 0.3%, following 0.2% for November. For 2016, CPI rose 2.1%, and core CPI 2.2%.

December industrial production improved 0.8%, but November’s was revised to a 0.7% tumble, rather than the originally estimated 0.4% fall.

The Federal Reserve’s region-by-region economic summary (beige book ) revealed labour tightening and manufacturing improvements appeared common over the previous six weeks.

A homebuilders sentiment index slipped two points to 67.

Tonight in the US, weekly new unemployment claims are due, together with December housing starts and building approval, and a regional manufacturing index.

The European Central Bank (ECB) holds a policy meeting from which subsequent inflation forecast comment appears most anticipated.

Alliance Pharma, American Express, Bank of NY Mellon and IBM are due to report earnings and/or release trading updates.

In overnight corporate news, Citigroup produced its first profit gain in a year, but revenue undershot expectations.

Goldman Sachs December quarter profit tripled, exceeding forecasts.

Target Corp fell ~6% on sales and forecasts that disappointed.

Toyota Motor Corp expressed concern for the ongoing competitiveness of its UK operations, on the European Union separation plans outlined this week by the UK PM.

UK educational publishing specialist Pearsons dropped almost 30% on a profit warning.

 
19/01/2017 6:47:07 AM

Back to top