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Market Opener - 17 May 2017

 
Local Markets Commentary

The Australian market commences mid-week trade on quite varied overnight international equities and commodities leads.

In commodities trade, US gold futures continued a little higher. Oil slipped. Iron ore turned higher. LME copper settled almost flat.

The $A was pushed higher after trading at ~US74.10c yesterday evening.

Locally today, Westpac and the Melbourne Institute’s monthly consumer confidence report is due.

The ABS is also expected to publish a March quarter wage price index and overall March lending finance.

Overseas Market Commentary

Mixed data and sector sentiment meant most major European and US equities markets chopped and swung overnight, but not the FTSE 100.

UK April CPI growth was reported at 2.7% year-on-year, in part attributed to a late Easter, which in turn pushed April airfares higher. Core inflation was estimated at 2.4%.

UK inflation had grown 2.3% in March and core inflation 1.8%.

Euro zone March quarter GDP was confirmed in a second reading at 1.7% year-on-year, and 0.5% for the quarter.

In the meantime, Greece reported 0.1% lower March quarter GDP, following a 1.2% drop for the December quarter 2016, hence slipping into recession.

Earlier, China was reported to have made available an additional $US24.7B to the banking sector, the most in the one day in ~four months.

In US data releases, April industrial production rose 1.0%, the best rate in 3.25 years.

Housing starts dropped 2.6%, but came in 0.7% higher year-on-year.

Building permits fell 2.5%.

Tonight in the US, weekly mortgage applications are due.

Cisco Systems and Target are among companies scheduled to publish earnings or an update.

In overnight corporate news, Home Depot quarterly results exceeded expectations.

Staples, Dick’s Sporting Goods and other retailers undershot some forecasts, however, further weakening US retail sentiment. Dick’s was pushed 13% lower.

Yahoo! appreciated 2% on a planned $US3M buy-back.

Vodafone supported the FTSE 100, rising 4% on an encouraging outlook.

 
17/05/2017 7:50:20 AM

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