Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 06 Feb 2019
Local Markets Commentary
The Australian market opens mid-week trade following overnight rallies across key international equities markets, with Commonwealth Bank (CBA) results in hand, and ahead of a speech from the Reserve Bank of Australia (RBA) governor, a US presidential State of the Union address today, and key US data releases tonight.
Locally today, RBA governor Philip Lowe is scheduled to speak 12.30pm AEDT at The National Press Club.
In addition, several high-cap stocks are reporting earnings, and RMD trades ex-dividend.
In the US, the president’s national live address is scheduled to commence ~1pm AEDT.
Markets interest is focused on any further indications of progress in China-US trade talks, and Mexican border funding options – including any new threat of another government shut-down before month’s end.
In overnight commodities trade, oil was pushed lower for a second consecutive session.
US gold futures (April) settled virtually flat.
LME copper rallied. Nickel swung lower.
The $A fell to ~US72.30c, after trading at ~US72.60c early yesterday evening.
Today’s key domestic and US speeches could toy with the $A intra-session.
New Zealand’s markets are closed today, due to a public holiday.
China’s markets remain closed for Golden Week (Lunar NY/Spring Festival holidays).
Overseas Market Commentary
US equities markets rallied on opening overnight, and despite a notable early-second half vacillation, helped drag major European indices higher.
Sentiment appeared mostly boosted by encouraging results and outlooks from select high-cap stocks, amid some mixed views on data releases, and speculation regarding the likely content of the US president’s State of the Union address (9PM ET).
The FTSE 100 benefited from a drop in the British pound against the $US, helping support select minerals and broader export stocks.
In US overnight data releases, ISM’s January services sector activity index came in at a strong 56.7, but this represented a 1.3-point decline for the month, against forecasts of a 0.8-point pullback.
Notably, the 57.7 orders component represented a five-point drop, but nonetheless remained in robust expansionary territory.
An economic optimism index fell two points to 50.3.
The euro zone’s December retail sales dropped 1.6% for the month, following a 0.8% November gain.
A final January services PMI remained flat at 51.2.
The final January services PMI for Germany rose 1.2 points to 53, however, contractionary figures for France and Italy containing the overall euro zone result.
In the UK, the services PMI slipped to 50.1 from 51.2.
Tonight in the US, Federal Reserve chair Jerome Powell is scheduled to speak at the opening of an education sector event.
A previously delayed initial December quarter GDP reading is expected.
November trade figures, also delayed, are anticipated.
A job openings report and weekly mortgage applications are also due.
Elsewhere, any outcomes plus parliamentary reactions from the UK PM’s attempt overnight to renegotiate Ireland-UK border arrangements for when the UK withdraws from the European Union, are anticipated.
Germany’s factory orders will also be in focus, given a recent series of weak regional data.
Companies scheduled to report earnings later today or tonight include: BNP Paribas, Carlsberg, Carlyle Group, Daimler, Eli Lilly, General Motors, GlaxoSmithKline, Humana, Mazda Motor, NXP Semiconductors, Spotify, Sumitomo, Toyota Motor and Twenty-First Century Fox.
In overnight corporate news, major US grains trader Archer Daniels Midland reported a 60% year-on-year December quarter profit drop, in part attributed to US-China trade tariffs argy-bargy.
Earlier, BP full year profit and revenue exceeded expectations, profit rising 100%.
Anadarko Petroleum recorded a 74% higher quarterly profit, boosted by higher oil prices, but having reported post-US trade, reactions will firm tonight.
Estee Lauder delivered a cheery outlook and promising quarterly sales, while warning of international trade risks, and was rewarded with a greater-than-10% lift.
Alphabet’s post-Monday US equities trade report was received with caution, the stock rising a relatively modest ~1.5%.
Walt Disney has reported post-US trade.
The Australian market opens mid-week trade following overnight rallies across key international equities markets, with Commonwealth Bank (CBA) results in hand, and ahead of a speech from the Reserve Bank of Australia (RBA) governor, a US presidential State of the Union address today, and key US data releases tonight.
Locally today, RBA governor Philip Lowe is scheduled to speak 12.30pm AEDT at The National Press Club.
In addition, several high-cap stocks are reporting earnings, and RMD trades ex-dividend.
In the US, the president’s national live address is scheduled to commence ~1pm AEDT.
Markets interest is focused on any further indications of progress in China-US trade talks, and Mexican border funding options – including any new threat of another government shut-down before month’s end.
In overnight commodities trade, oil was pushed lower for a second consecutive session.
US gold futures (April) settled virtually flat.
LME copper rallied. Nickel swung lower.
The $A fell to ~US72.30c, after trading at ~US72.60c early yesterday evening.
Today’s key domestic and US speeches could toy with the $A intra-session.
New Zealand’s markets are closed today, due to a public holiday.
China’s markets remain closed for Golden Week (Lunar NY/Spring Festival holidays).
Overseas Market Commentary
US equities markets rallied on opening overnight, and despite a notable early-second half vacillation, helped drag major European indices higher.
Sentiment appeared mostly boosted by encouraging results and outlooks from select high-cap stocks, amid some mixed views on data releases, and speculation regarding the likely content of the US president’s State of the Union address (9PM ET).
The FTSE 100 benefited from a drop in the British pound against the $US, helping support select minerals and broader export stocks.
In US overnight data releases, ISM’s January services sector activity index came in at a strong 56.7, but this represented a 1.3-point decline for the month, against forecasts of a 0.8-point pullback.
Notably, the 57.7 orders component represented a five-point drop, but nonetheless remained in robust expansionary territory.
An economic optimism index fell two points to 50.3.
The euro zone’s December retail sales dropped 1.6% for the month, following a 0.8% November gain.
A final January services PMI remained flat at 51.2.
The final January services PMI for Germany rose 1.2 points to 53, however, contractionary figures for France and Italy containing the overall euro zone result.
In the UK, the services PMI slipped to 50.1 from 51.2.
Tonight in the US, Federal Reserve chair Jerome Powell is scheduled to speak at the opening of an education sector event.
A previously delayed initial December quarter GDP reading is expected.
November trade figures, also delayed, are anticipated.
A job openings report and weekly mortgage applications are also due.
Elsewhere, any outcomes plus parliamentary reactions from the UK PM’s attempt overnight to renegotiate Ireland-UK border arrangements for when the UK withdraws from the European Union, are anticipated.
Germany’s factory orders will also be in focus, given a recent series of weak regional data.
Companies scheduled to report earnings later today or tonight include: BNP Paribas, Carlsberg, Carlyle Group, Daimler, Eli Lilly, General Motors, GlaxoSmithKline, Humana, Mazda Motor, NXP Semiconductors, Spotify, Sumitomo, Toyota Motor and Twenty-First Century Fox.
In overnight corporate news, major US grains trader Archer Daniels Midland reported a 60% year-on-year December quarter profit drop, in part attributed to US-China trade tariffs argy-bargy.
Earlier, BP full year profit and revenue exceeded expectations, profit rising 100%.
Anadarko Petroleum recorded a 74% higher quarterly profit, boosted by higher oil prices, but having reported post-US trade, reactions will firm tonight.
Estee Lauder delivered a cheery outlook and promising quarterly sales, while warning of international trade risks, and was rewarded with a greater-than-10% lift.
Alphabet’s post-Monday US equities trade report was received with caution, the stock rising a relatively modest ~1.5%.
Walt Disney has reported post-US trade.