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Market Opener – 12 Apr 2018
Local Markets Commentary
The Australian market opens today’s trade on negative overnight US equities leads but some good gains for select key commodities, amid Middle East uncertainty, which could result in new near-term military action involving the US, UK and France.
In mixed overnight commodities trade, US gold futures were propelled higher. Oil continued to settle in rally mode.
Iron ore (China port, 62% Fe) pulled back.
LME copper settled little changed, but nickel and aluminium continued to rally.
The $A appreciated some after trading at ~US77.45c early yesterday evening.
Local today, the Australian Bureau of Statistics (ABS) reports February housing finance 11.30am AEST.
The Melbourne Institute publishes its monthly inflation expectations report 11am AEST.
Regionally, Bank of Japan governor Haruhiko Kuroda is scheduled to speak publicly 10.30am AEST.
Overseas Market Commentary
Major European and US equities markets opened lower overnight, then chopped and swung, mostly closing at or near session lows.
US Federal Reserve March policy meeting minutes revealed most FOMC members had favoured increasing the pace of interest rate rises, pending risks posed by international matters including trade relationships.
In addition, argy-bargy had continued between the US and Russia regarding missile threats against pro-Syrian administration forces. Meanwhile, leaders in the UK and France were reported to be prepared to seek parliamentary approval to participate in select action.
Further, US November mid-term election expectations were jolted when a high-profile Republican parliamentarian revealed plans not to seek re-election.
Among data releases, US March CPI was estimated to have pulled back by 0.1% on 4.9% lower petrol prices.
Year-on-year, CPI had grown 2.4% however, and core CPI (excludes energy and food prices) came in at a 0.2% rise for the month.
During March, the national deficit grew by $US33B to $US209B.
Earlier, UK trade deficit was reported to have grown by £0.4B to £6.4B during the February quarter. Non-European Union (goods) exports fell by £2.1B.
Other UK data also disappointed, February quarter production output slipping 0.1%. However, this was mainly attributed to the Forties oil pipeline shutdown from December 2017.
For February, industrial production rose 0.1%, but this followed a 1.3% gain in January. Further, manufacturing output declined by 0.2%.
Construction output fell 1.6% during February, following a 3.1% drop in January, and came in 3.0% lower than a year earlier. Maintenance and repair work was cited as a major reason, falling 2.6% for the month, in part due to adverse winter weather.
In the meantime, European Central Bank (ECB) president Mario Draghi ventured that any ongoing trade spats between the US and China could impact the euro zone economy in terms of investor confidence and any broader retaliatory measures.
Tonight in the US, weekly new unemployment claims are due, together with import and export prices.
Elsewhere, Bank of England governor Mark Carney and Germany’s Bundesbank (central bank) president Jens Weidmann are scheduled to speak publicly.
BlackRock, Delta Air Lines, Man Group, Mothercare, PZ Cussons and Yunnan Copper are among companies scheduled to report earnings or provide trading updates.
In overnight corporate news, UK supermarket group Tesco resumed final dividends on reporting a £1.3B full-year pre-tax profit and £57.5B revenue.
Online retailer ASOS reported £1.16B half-year revenue on the back of a 28% rise in orders. Cost containment was considered an issue, however.
The Australian market opens today’s trade on negative overnight US equities leads but some good gains for select key commodities, amid Middle East uncertainty, which could result in new near-term military action involving the US, UK and France.
In mixed overnight commodities trade, US gold futures were propelled higher. Oil continued to settle in rally mode.
Iron ore (China port, 62% Fe) pulled back.
LME copper settled little changed, but nickel and aluminium continued to rally.
The $A appreciated some after trading at ~US77.45c early yesterday evening.
Local today, the Australian Bureau of Statistics (ABS) reports February housing finance 11.30am AEST.
The Melbourne Institute publishes its monthly inflation expectations report 11am AEST.
Regionally, Bank of Japan governor Haruhiko Kuroda is scheduled to speak publicly 10.30am AEST.
Overseas Market Commentary
Major European and US equities markets opened lower overnight, then chopped and swung, mostly closing at or near session lows.
US Federal Reserve March policy meeting minutes revealed most FOMC members had favoured increasing the pace of interest rate rises, pending risks posed by international matters including trade relationships.
In addition, argy-bargy had continued between the US and Russia regarding missile threats against pro-Syrian administration forces. Meanwhile, leaders in the UK and France were reported to be prepared to seek parliamentary approval to participate in select action.
Further, US November mid-term election expectations were jolted when a high-profile Republican parliamentarian revealed plans not to seek re-election.
Among data releases, US March CPI was estimated to have pulled back by 0.1% on 4.9% lower petrol prices.
Year-on-year, CPI had grown 2.4% however, and core CPI (excludes energy and food prices) came in at a 0.2% rise for the month.
During March, the national deficit grew by $US33B to $US209B.
Earlier, UK trade deficit was reported to have grown by £0.4B to £6.4B during the February quarter. Non-European Union (goods) exports fell by £2.1B.
Other UK data also disappointed, February quarter production output slipping 0.1%. However, this was mainly attributed to the Forties oil pipeline shutdown from December 2017.
For February, industrial production rose 0.1%, but this followed a 1.3% gain in January. Further, manufacturing output declined by 0.2%.
Construction output fell 1.6% during February, following a 3.1% drop in January, and came in 3.0% lower than a year earlier. Maintenance and repair work was cited as a major reason, falling 2.6% for the month, in part due to adverse winter weather.
In the meantime, European Central Bank (ECB) president Mario Draghi ventured that any ongoing trade spats between the US and China could impact the euro zone economy in terms of investor confidence and any broader retaliatory measures.
Tonight in the US, weekly new unemployment claims are due, together with import and export prices.
Elsewhere, Bank of England governor Mark Carney and Germany’s Bundesbank (central bank) president Jens Weidmann are scheduled to speak publicly.
BlackRock, Delta Air Lines, Man Group, Mothercare, PZ Cussons and Yunnan Copper are among companies scheduled to report earnings or provide trading updates.
In overnight corporate news, UK supermarket group Tesco resumed final dividends on reporting a £1.3B full-year pre-tax profit and £57.5B revenue.
Online retailer ASOS reported £1.16B half-year revenue on the back of a 28% rise in orders. Cost containment was considered an issue, however.