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Before making any investment decision, you should consult your adviser.
Market Opener – 28 Aug 2019
Local Markets Commentary
The Australian market commences today’s trade with an overnight fall in US equities sentiment, several large-cap domestic stocks trading ex-dividend and others reporting earnings as the 30 June major reporting season enters its third last day.
Also today, the Australian Bureau of Statistics reports June quarter construction work.
Stocks trading ex-dividend today include AWC, COL, FBU, MMS and TLS. Please see p4 for a detailed list.
In overnight commodities trade, oil swung higher.
US gold futures (December) rallied beyond $US1551.50/oz.
Iron ore (Nymex CFR China, 62% Fe) continued its latest pull back, again approaching $US92.00/t.
LME copper and other key base metals traded for the first time this week, copper steadying to reportedly recoup ~0.9% following Friday’s fall.
Meanwhile, the US administration has confirmed it is talking with select parties in Australia with the view to establishing a joint venture rare earths processing facility in Australia, for supply to the US.
The $A fell towards US67.50c after trading at US67.60c early yesterday evening.
Also today, the Australian Bureau of Statistics reports June quarter construction work.
Stocks trading ex-dividend today include AWC, COL, FBU, MMS and TLS. Please see p4 for a detailed list.
In overnight commodities trade, oil swung higher.
US gold futures (December) rallied beyond $US1551.50/oz.
Iron ore (Nymex CFR China, 62% Fe) continued its latest pull back, again approaching $US92.00/t.
LME copper and other key base metals traded for the first time this week, copper steadying to reportedly recoup ~0.9% following Friday’s fall.
Meanwhile, the US administration has confirmed it is talking with select parties in Australia with the view to establishing a joint venture rare earths processing facility in Australia, for supply to the US.
The $A fell towards US67.50c after trading at US67.60c early yesterday evening.
Overseas Market Commentary
Sentiment across US equities markets deteriorated from positive openings overnight, ultimately dragging on European indices, which had largely trended higher from opening. The FTSE traded for the first time this week.
US financial stocks were out of favour on persistent potential recession talk, US 10-year sovereign bond (treasury) yields falling ~0.068% to increase the deficit to two-year yields to ~0.05%.
Earlier yesterday, China had effectively called out US behaviour regarding trade relations and placed the onus back on the US to establish sufficiently acceptable conditions for official talks to resume.
Germany’s June quarter GDP was finalised as having fallen by 0.1% during the three months, following 0.4% growth for January through March. Year-on-year June quarter GDP grew 0.4%.
US data releases included a Case-Shiller June house price index, which rose 0.3% for the month, following a 0.6% May increase.
An industry house price index was estimated 0.2% higher, on par with the May calculation.
The Richmond Fed’s manufacturing index jumped to 1 from -12 in July.
The Conference Board’s August consumer confidence reading came in at 135.1, from 135.8.
Tonight in the US, weekly mortgage applications are due.
In Italy, the outcome of negotiations between parliamentary party leaders will be assessed tonight, in an attempt to avert a new national election.
Companies scheduled to report earnings later today and tonight include: Air China, Hongxing Iron & Steel, Industrial Bank, Korea Semiconductor, Petrofac, Ramsay Générale de Santé and Tiffany.
US financial stocks were out of favour on persistent potential recession talk, US 10-year sovereign bond (treasury) yields falling ~0.068% to increase the deficit to two-year yields to ~0.05%.
Earlier yesterday, China had effectively called out US behaviour regarding trade relations and placed the onus back on the US to establish sufficiently acceptable conditions for official talks to resume.
Germany’s June quarter GDP was finalised as having fallen by 0.1% during the three months, following 0.4% growth for January through March. Year-on-year June quarter GDP grew 0.4%.
US data releases included a Case-Shiller June house price index, which rose 0.3% for the month, following a 0.6% May increase.
An industry house price index was estimated 0.2% higher, on par with the May calculation.
The Richmond Fed’s manufacturing index jumped to 1 from -12 in July.
The Conference Board’s August consumer confidence reading came in at 135.1, from 135.8.
Tonight in the US, weekly mortgage applications are due.
In Italy, the outcome of negotiations between parliamentary party leaders will be assessed tonight, in an attempt to avert a new national election.
Companies scheduled to report earnings later today and tonight include: Air China, Hongxing Iron & Steel, Industrial Bank, Korea Semiconductor, Petrofac, Ramsay Générale de Santé and Tiffany.