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Market Opener – 01 Aug 2018
Local Markets Commentary
The Australian market commences mid-week trade following an overnight turn higher for major international equities markets, ahead of further key domestic and regional data today, and ahead of a post-policy meeting statement from the US Federal Reserve pre-ASX trade tomorrow.
In overnight commodities trade, oil swung lower.
US gold futures turned to settle higher.
LME copper and nickel were pushed higher. Aluminium pulled back.
The $A strengthened a little after appreciating to ~US74.20c early yesterday evening.
Regionally today, Caixin is scheduled to publish its July manufacturing PMI for China 11.45am AEST.
A final July manufacturing PMI is due for Japan 10.30am AEST.
Locally today, AiG’s July national manufacturing activity index and a capital city residential property price report are expected pre-trade.
An inflation gauge report is also anticipated this morning.
The Reserve Bank of Australia (RBA) releases its monthly commodity price report post-trade.
Overseas Market Commentary
Major European and US equities markets turned higher overnight, most maintaining or improving on early gains during the last trading session for July.
Some big-name reporting supported overall sentiment, but economic indicators came in mixed.
In addition, the industrial sector benefited from talk the US and China were proactively seeking ways to sort trade issues.
Tech sector appetite also improved.
Among new data releases, an initial June quarter GDP reading for the euro zone came in at 0.3% growth for the three months and 2.1% for the year, following a respective 0.4% and 2.5% for the March quarter.
An initial July CPI growth reading rose to 2.1% from 2.0% in June.
Meanwhile, Germany’s June retail sales rose 1.2% for the month and 3% year-on-year, following a 1.5% monthly fall in May.
In the US, June personal and income spending were each reported to have risen 0.4%.
A June quarter employment cost index rose by 0.6%.
A robust 65.5 Chicago region manufacturing index represented a 1.4 improvement for the month, and the highest reading in six months.
A national house price index climbed 0.4% in May, and 6.4% year-on-year.
The Conference Board’s July consumer confidence reading came in 0.9 higher, at 127.4.
Tonight in the US, the Federal Reserve will release a statement at the end of its policy meeting (4am tomorrow AEST).
In addition, a private sector jobs report is sure to also gain attention, ahead of Friday night’s July employment statistics.
ISM’s July manufacturing index, a Markit manufacturing PMI, June construction spending and weekly mortgage applications are also due.
Companies due to report earnings or provide an update later today and tonight include: Aggreko, Arcelor Mittal, Automatic Data Processing, BNP Paribas, BAE Systems, Humana, Lloyds, Mazda Motor, Next, Prudential Financial, Restaurant Brands, Rio Tinto, Tesla, T-Mobile, Volkswagen, Wynn Resorts and Yamaha.
In overnight corporate news, BP revealed it had quadrupled underlying profit year-on-year.
Procter & Gamble and Pfizer each exceeded at least some expectations, but margins and hence outlooks appeared to deliver some caution.
Sony also benefited from a substantial profit increase.
Apple reported post-US trade, surprising with 17% higher year-on-year $US53.3Brevenue and 32% higher profit, boosted by appreciating product prices.
The Australian market commences mid-week trade following an overnight turn higher for major international equities markets, ahead of further key domestic and regional data today, and ahead of a post-policy meeting statement from the US Federal Reserve pre-ASX trade tomorrow.
In overnight commodities trade, oil swung lower.
US gold futures turned to settle higher.
LME copper and nickel were pushed higher. Aluminium pulled back.
The $A strengthened a little after appreciating to ~US74.20c early yesterday evening.
Regionally today, Caixin is scheduled to publish its July manufacturing PMI for China 11.45am AEST.
A final July manufacturing PMI is due for Japan 10.30am AEST.
Locally today, AiG’s July national manufacturing activity index and a capital city residential property price report are expected pre-trade.
An inflation gauge report is also anticipated this morning.
The Reserve Bank of Australia (RBA) releases its monthly commodity price report post-trade.
Overseas Market Commentary
Major European and US equities markets turned higher overnight, most maintaining or improving on early gains during the last trading session for July.
Some big-name reporting supported overall sentiment, but economic indicators came in mixed.
In addition, the industrial sector benefited from talk the US and China were proactively seeking ways to sort trade issues.
Tech sector appetite also improved.
Among new data releases, an initial June quarter GDP reading for the euro zone came in at 0.3% growth for the three months and 2.1% for the year, following a respective 0.4% and 2.5% for the March quarter.
An initial July CPI growth reading rose to 2.1% from 2.0% in June.
Meanwhile, Germany’s June retail sales rose 1.2% for the month and 3% year-on-year, following a 1.5% monthly fall in May.
In the US, June personal and income spending were each reported to have risen 0.4%.
A June quarter employment cost index rose by 0.6%.
A robust 65.5 Chicago region manufacturing index represented a 1.4 improvement for the month, and the highest reading in six months.
A national house price index climbed 0.4% in May, and 6.4% year-on-year.
The Conference Board’s July consumer confidence reading came in 0.9 higher, at 127.4.
Tonight in the US, the Federal Reserve will release a statement at the end of its policy meeting (4am tomorrow AEST).
In addition, a private sector jobs report is sure to also gain attention, ahead of Friday night’s July employment statistics.
ISM’s July manufacturing index, a Markit manufacturing PMI, June construction spending and weekly mortgage applications are also due.
Companies due to report earnings or provide an update later today and tonight include: Aggreko, Arcelor Mittal, Automatic Data Processing, BNP Paribas, BAE Systems, Humana, Lloyds, Mazda Motor, Next, Prudential Financial, Restaurant Brands, Rio Tinto, Tesla, T-Mobile, Volkswagen, Wynn Resorts and Yamaha.
In overnight corporate news, BP revealed it had quadrupled underlying profit year-on-year.
Procter & Gamble and Pfizer each exceeded at least some expectations, but margins and hence outlooks appeared to deliver some caution.
Sony also benefited from a substantial profit increase.
Apple reported post-US trade, surprising with 17% higher year-on-year $US53.3Brevenue and 32% higher profit, boosted by appreciating product prices.