Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 23 May 2019
Local Markets Commentary
The Australian market opens today’s trade following an overnight return to negative US equities sentiment.
China’s president has warned of ‘difficult times’, and the US administration is reportedly planning to place an additional 5000 military personnel in the Middle East.
In overnight commodities trade, iron ore (China port, 62% Fe) jumped to settle beyond $US 105.5/t.
Oil fell.
US gold futures (June) turned slightly higher.
LME copper picked up the pace of its current decline. Nickel and aluminium were also pushed lower.
The $A fell to ~US68.80c after trading at ~US68.90c early yesterday evening.
Locally today, PDL trades ex-dividend. Please see p3 for a detailed list.
China’s president has warned of ‘difficult times’, and the US administration is reportedly planning to place an additional 5000 military personnel in the Middle East.
In overnight commodities trade, iron ore (China port, 62% Fe) jumped to settle beyond $US 105.5/t.
Oil fell.
US gold futures (June) turned slightly higher.
LME copper picked up the pace of its current decline. Nickel and aluminium were also pushed lower.
The $A fell to ~US68.80c after trading at ~US68.90c early yesterday evening.
Locally today, PDL trades ex-dividend. Please see p3 for a detailed list.
Overseas Market Commentary
Choppy trade featured across major European and US equities markets overnight, key US indices trading lower from the outset, amid unsettling tech, telecommunications and manufacturing corporate news, UK government angst and broadening impacts from the US-China trade stoush.
Pre-US trade, Japan’s Softbank-owned, but UK-based, ARM confirmed it had instructed employees to suspend business with Huawei 16 May, as the UK’s BT (formerly British Telecom) mobile phone network EE said it would not be including Huawei devices in its 5G launch next week.
Further, a media report claimed the US administration was considering prohibiting China video surveillance company Hangzhou Hikvision from purchasing US technology.
US treasury secretary Steven Mnuchin in the meantime confirmed to a parliamentary committee that the administration was considering raising import taxes on another $US300B worth of goods from China, but was at least a few weeks away from any action.
Earlier, China’s president Xi Jinping had asserted the nation needed to ‘prepare for difficult times’.
In addition, a federal court had supported the Federal Trade Commission determination that US chip manufacturer Qualcomm had charged excessive licence fees and illegally suppressed competition.
Also earlier, British Steel, purchased by private equity group Greybull for £1 from Tata Steel in 2016, was placed into liquidation, following trading difficulties amid UK-European Union (EU) separation delays and US-China trade woes.
In the UK parliament, a senior government minister in favour of the UK’s planned separation from the EU, resigned in protest against the PM’s proposed new plan. Other government MPs predicted the new arrangement would not be approved and encouraged the PM to step down.
In afternoon US trade, US Federal Reserve policy meeting minutes indicated no rate changes in the near term. However, a regional president speaking in Hong Kong yesterday, suggested any persisting ultra-weak inflation could force a downward move.
Earlier, European Central Bank (ECB) president Mario Draghi bemoaned weak appetite for progressing a proposed regional banking union.
Overnight data releases included UK April CPI growth which rose 0.6% for the month and 2.1% year-on-year, following respective 0.2% and 1.9% increases in March.
In the US, weekly mortgage applications rose 2.4% as 30-year rates fell from 4.44% to 4.30%.
Meanwhile in Germany, yields for a 10-year bond auction fell to 0.07% from 0.02%.
Tonight in the US, April new homes sales, weekly new unemployment claims, a regional manufacturing index and Markit preliminary May PMIs are due.
Elsewhere, European Central Bank (ECB) April policy meeting minutes are due.
In addition, European Parliament elections commence. These are scheduled to continue until Sunday.
Companies due to report earnings later today or tonight include: Best Buy, HP, Hewlett-Packard Enterprises, Intuit, Medtronic, United Utilities and Weibo.
US supermarket chain Morrison’s, Carnival and Imperial Brands trade ex-dividend on the FTSE 100.
In overnight corporate news, US retailer Lowe’s fell more than 11% on a weak outlook. Nordstrom had reported similarly post-Tuesday US trade, and was pushed ~9% lower.
10% was cut from Urban Outfitters on women’s clothing rental plans which were effectively panned by analysts.
Target results pushed that stock more than 5% higher, however.
In the UK, department store Marks & Spencer full year profit and sales both declined.
Two additional Chinese airlines sought 737 Max-grounding compensation from Boeing.
NB: US and UK markets (including the LME) will be closed Monday due to public holidays.
Pre-US trade, Japan’s Softbank-owned, but UK-based, ARM confirmed it had instructed employees to suspend business with Huawei 16 May, as the UK’s BT (formerly British Telecom) mobile phone network EE said it would not be including Huawei devices in its 5G launch next week.
Further, a media report claimed the US administration was considering prohibiting China video surveillance company Hangzhou Hikvision from purchasing US technology.
US treasury secretary Steven Mnuchin in the meantime confirmed to a parliamentary committee that the administration was considering raising import taxes on another $US300B worth of goods from China, but was at least a few weeks away from any action.
Earlier, China’s president Xi Jinping had asserted the nation needed to ‘prepare for difficult times’.
In addition, a federal court had supported the Federal Trade Commission determination that US chip manufacturer Qualcomm had charged excessive licence fees and illegally suppressed competition.
Also earlier, British Steel, purchased by private equity group Greybull for £1 from Tata Steel in 2016, was placed into liquidation, following trading difficulties amid UK-European Union (EU) separation delays and US-China trade woes.
In the UK parliament, a senior government minister in favour of the UK’s planned separation from the EU, resigned in protest against the PM’s proposed new plan. Other government MPs predicted the new arrangement would not be approved and encouraged the PM to step down.
In afternoon US trade, US Federal Reserve policy meeting minutes indicated no rate changes in the near term. However, a regional president speaking in Hong Kong yesterday, suggested any persisting ultra-weak inflation could force a downward move.
Earlier, European Central Bank (ECB) president Mario Draghi bemoaned weak appetite for progressing a proposed regional banking union.
Overnight data releases included UK April CPI growth which rose 0.6% for the month and 2.1% year-on-year, following respective 0.2% and 1.9% increases in March.
In the US, weekly mortgage applications rose 2.4% as 30-year rates fell from 4.44% to 4.30%.
Meanwhile in Germany, yields for a 10-year bond auction fell to 0.07% from 0.02%.
Tonight in the US, April new homes sales, weekly new unemployment claims, a regional manufacturing index and Markit preliminary May PMIs are due.
Elsewhere, European Central Bank (ECB) April policy meeting minutes are due.
In addition, European Parliament elections commence. These are scheduled to continue until Sunday.
Companies due to report earnings later today or tonight include: Best Buy, HP, Hewlett-Packard Enterprises, Intuit, Medtronic, United Utilities and Weibo.
US supermarket chain Morrison’s, Carnival and Imperial Brands trade ex-dividend on the FTSE 100.
In overnight corporate news, US retailer Lowe’s fell more than 11% on a weak outlook. Nordstrom had reported similarly post-Tuesday US trade, and was pushed ~9% lower.
10% was cut from Urban Outfitters on women’s clothing rental plans which were effectively panned by analysts.
Target results pushed that stock more than 5% higher, however.
In the UK, department store Marks & Spencer full year profit and sales both declined.
Two additional Chinese airlines sought 737 Max-grounding compensation from Boeing.
NB: US and UK markets (including the LME) will be closed Monday due to public holidays.