Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 26 Jun 2018
Local Markets Commentary
The Australian market commences today’s trade following negative sentiment across international equities markets overnight, and price falls for key commodities.
Locally today, a weekly consumer sentiment report is due pre-trade.
The Reserve Bank of Australia’s (RBA) payments policy head Tony Richards also speaks at an Australian Business Economists event focusing on cryptocurrencies, ~1pm AEST.
In overnight commodities trade, oil pulled back.
US gold futures slipped again.
Iron ore (China port, 62% Fe) modestly extended Friday’s gain.
LME copper headed lower. Nickel fell.
The $A continued lower after dropping below ~US74.25c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets dropped on opening overnight and never looked like recovering any significant distance.
The DJIA notably settled for the first time in two years below its 200-day moving average.
Traders were operating within a shifting geopolitical environment, due to a range of issues.
The US administration was reported to be preparing to announce new measures regarding limiting Chinese investment in broad US technology ventures and research, and also US technology exports to China.
Treasury Secretary Steven Mnuchin indicated curbing broader international technology co-operation was under consideration.
Technology stocks suffered, in part also due to a general preference for ‘safe’ investments such as sovereign bonds, as investors considered the impacts of US-international trade disputes involving a broad range of goods and services.
This was exacerbated by high-profile corporate announcements and reports directly linking potential business losses to trade issues.
Oil prices pulled back, impacting the energy sector, also on both sides of the Atlantic.
In the meantime, western European leaders continued to battle immigration issues, with select parliamentary stability still considered at stake.
In Turkey, those opposed to the president’s election failed to concede defeat, prompting fears of official and civil protests and strong administrative retaliation.
Among data releases, US May new home sales jumped 6.7% following a 3.7% fall in April.
A Texas region manufacturing index rose, defying expectations, to 36.5, following 26.5 for May.
Tonight in the US, house price, regional manufacturing and consumer confidence indices are due.
In addition, mid-term primaries will be conducted in several closely-watched States.
In overnight corporate news, Campbell Soup appreciated ~9% on reports Kraft Heinz was interested in a merger.
Harley Davidson cited trade tax tit-for-tat while announcing a decision to move its production of motor cycles destined for EU markets from the US. The stock fell 6%.
France’s reported Airbus discussions with China hurt Boeing, which was pushed more than 2% lower.
General Electric was reported to be ready to sign off on an ~$US3B sale of its industrial engine business to equity group Advent International. GE also fell, again in part due to fears of trade dispute impacts.
Gray Television gained more than 15% on a $US3.65B deal to purchase private media company Raycom Media.
Meanwhile, cruise specialist Carnival sank 11% after reducing earnings guidance.
The Australian market commences today’s trade following negative sentiment across international equities markets overnight, and price falls for key commodities.
Locally today, a weekly consumer sentiment report is due pre-trade.
The Reserve Bank of Australia’s (RBA) payments policy head Tony Richards also speaks at an Australian Business Economists event focusing on cryptocurrencies, ~1pm AEST.
In overnight commodities trade, oil pulled back.
US gold futures slipped again.
Iron ore (China port, 62% Fe) modestly extended Friday’s gain.
LME copper headed lower. Nickel fell.
The $A continued lower after dropping below ~US74.25c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets dropped on opening overnight and never looked like recovering any significant distance.
The DJIA notably settled for the first time in two years below its 200-day moving average.
Traders were operating within a shifting geopolitical environment, due to a range of issues.
The US administration was reported to be preparing to announce new measures regarding limiting Chinese investment in broad US technology ventures and research, and also US technology exports to China.
Treasury Secretary Steven Mnuchin indicated curbing broader international technology co-operation was under consideration.
Technology stocks suffered, in part also due to a general preference for ‘safe’ investments such as sovereign bonds, as investors considered the impacts of US-international trade disputes involving a broad range of goods and services.
This was exacerbated by high-profile corporate announcements and reports directly linking potential business losses to trade issues.
Oil prices pulled back, impacting the energy sector, also on both sides of the Atlantic.
In the meantime, western European leaders continued to battle immigration issues, with select parliamentary stability still considered at stake.
In Turkey, those opposed to the president’s election failed to concede defeat, prompting fears of official and civil protests and strong administrative retaliation.
Among data releases, US May new home sales jumped 6.7% following a 3.7% fall in April.
A Texas region manufacturing index rose, defying expectations, to 36.5, following 26.5 for May.
Tonight in the US, house price, regional manufacturing and consumer confidence indices are due.
In addition, mid-term primaries will be conducted in several closely-watched States.
In overnight corporate news, Campbell Soup appreciated ~9% on reports Kraft Heinz was interested in a merger.
Harley Davidson cited trade tax tit-for-tat while announcing a decision to move its production of motor cycles destined for EU markets from the US. The stock fell 6%.
France’s reported Airbus discussions with China hurt Boeing, which was pushed more than 2% lower.
General Electric was reported to be ready to sign off on an ~$US3B sale of its industrial engine business to equity group Advent International. GE also fell, again in part due to fears of trade dispute impacts.
Gray Television gained more than 15% on a $US3.65B deal to purchase private media company Raycom Media.
Meanwhile, cruise specialist Carnival sank 11% after reducing earnings guidance.