Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 01 Feb 2019
Local Markets Commentary
The Australian market commences a new month’s trade on a Friday, ahead of:
• new data for China;
• the delivery of the final report from Australia’s banking and finance royal commission;
• a batch of key domestic data;
• influential data releases on both sides of the Atlantic tonight; and
• a Lunar New Year/Spring Festival shutdown for China’s markets next week.
Overnight commodities trade proved largely positive.
Oil continued higher.
US gold futures (April) extended this week’s gains.
Iron ore (China port 62% Fe fines) rallied further.
LME copper and nickel settled yet higher, but aluminium closed flat.
The $A traded in a relatively narrow range close to US72.70c after trading at ~US72.75c early yesterday evening.
Regionally today, Caixin is due to release its January manufacturing PMI for China 12.45pm AEDT.
Locally, the final report from the banking and finance royal commission is due to be delivered to the government.
Some report details, but mostly general commentary, is anticipated anytime from today.
Pre-trade today, AiG publishes a January manufacturing sector index.
The Australian Bureau of Statistics (ABS) releases December quarter producer prices 11.30am AEDT.
January commodity prices, as calculated by the Reserve Bank of Australia (RBA) are due 4.30pm.
A residential property price index from CoreLogic is also expected today.
All this, ahead of the RBA’s first policy meeting of the year Tuesday next week.
Overseas Market Commentary
Major European and US equities markets trade diverged markedly overnight, the DJIA notably falling on opening and struggling to regain sustainable positive momentum.
Euro zone data again troubled and US releases came in mixed.
Reactions to high-cap stock earnings and sales, select growth figures and outlooks also varied significantly.
In the meantime, reports surfaced that China had this week offered for the presidents of the US and China to talk trade in China in March.
The US president appeared to confirm nothing else came out of the past two nights’ official trade negotiator talks in Washington and that the presidents’ meeting could prove crucial.
President Trump also declined to reiterate he would definitely implement new trade tariffs following the previously set 31 March deadline.
Earlier yesterday, China had reported a second consecutive month of contractionary manufacturing activity.
Among overnight data releases, the euro zone’s initial December quarter GDP growth reading came in at 0.2% for the three months and 1.2% year-on-year.
September quarter growth had also been estimated at 0.2%, but the annual December quarter rate represented the slowest growth since the March quarter 2014.
The 1.8% GDP growth for the year (2018) represented the first annual fall below 2% in four years.
Germany’s December retail sales dropped 4.3% for the month following a 1.6% November rise.
Year-on-year, sales fell 2.1%.
The monthly drop represented the fastest decline since December 2007.
US weekly new unemployment claims rose by 13,000 to 253,000, against forecasts of a 15,000 increase.
The rise, the most in a week since September 2017, was attributed in part to the recent public holiday and partial government services shutdown.
The four-week moving average rose by 5000 to 220,250.
A January job cuts report estimated 53,000 additional planned layoffs against 43,900 for December.
A Chicago PMI dropped 7.1 points to a nonetheless strong expansionary 56.7.
December quarter employment costs rose 0.7% following a 0.8% September quarter increase.
November new home sales jumped 16.9% (to 657,000) following an 8.3% October decline.
Tonight in the US, January employment statistics are keenly anticipated, together with ISM’s influential manufacturing index.
A University of Michigan final January consumer sentiment reading is also due.
Elsewhere, a preliminary euro zone January CPI reading will be in focus, due to Germany’s and France’s deflation figures, reported Wednesday and overnight respectively.
Companies expected to report earnings later today or tonight include: Aon, Chevron, Deutsche Bank, ExxonMobil, Honda Motor, Merck, Mitsubishi UFJ Financial and Sony.
In overnight corporate news, different aspects of reports from Microsoft, Visa (each post-Wednesday US trade) and DowDuPont disappointed, pushing the stocks, and subsequently the DJIA, lower.
General Electric added more than 10% however, on pleasing sales.
Facebook was similarly rewarded for its profit figures, but user and advertiser growth plus revenue also pleased.
Amazon has reported post-US trade, but a 20% sales jump reportedly undershot expectations.
The Australian market commences a new month’s trade on a Friday, ahead of:
• new data for China;
• the delivery of the final report from Australia’s banking and finance royal commission;
• a batch of key domestic data;
• influential data releases on both sides of the Atlantic tonight; and
• a Lunar New Year/Spring Festival shutdown for China’s markets next week.
Overnight commodities trade proved largely positive.
Oil continued higher.
US gold futures (April) extended this week’s gains.
Iron ore (China port 62% Fe fines) rallied further.
LME copper and nickel settled yet higher, but aluminium closed flat.
The $A traded in a relatively narrow range close to US72.70c after trading at ~US72.75c early yesterday evening.
Regionally today, Caixin is due to release its January manufacturing PMI for China 12.45pm AEDT.
Locally, the final report from the banking and finance royal commission is due to be delivered to the government.
Some report details, but mostly general commentary, is anticipated anytime from today.
Pre-trade today, AiG publishes a January manufacturing sector index.
The Australian Bureau of Statistics (ABS) releases December quarter producer prices 11.30am AEDT.
January commodity prices, as calculated by the Reserve Bank of Australia (RBA) are due 4.30pm.
A residential property price index from CoreLogic is also expected today.
All this, ahead of the RBA’s first policy meeting of the year Tuesday next week.
Overseas Market Commentary
Major European and US equities markets trade diverged markedly overnight, the DJIA notably falling on opening and struggling to regain sustainable positive momentum.
Euro zone data again troubled and US releases came in mixed.
Reactions to high-cap stock earnings and sales, select growth figures and outlooks also varied significantly.
In the meantime, reports surfaced that China had this week offered for the presidents of the US and China to talk trade in China in March.
The US president appeared to confirm nothing else came out of the past two nights’ official trade negotiator talks in Washington and that the presidents’ meeting could prove crucial.
President Trump also declined to reiterate he would definitely implement new trade tariffs following the previously set 31 March deadline.
Earlier yesterday, China had reported a second consecutive month of contractionary manufacturing activity.
Among overnight data releases, the euro zone’s initial December quarter GDP growth reading came in at 0.2% for the three months and 1.2% year-on-year.
September quarter growth had also been estimated at 0.2%, but the annual December quarter rate represented the slowest growth since the March quarter 2014.
The 1.8% GDP growth for the year (2018) represented the first annual fall below 2% in four years.
Germany’s December retail sales dropped 4.3% for the month following a 1.6% November rise.
Year-on-year, sales fell 2.1%.
The monthly drop represented the fastest decline since December 2007.
US weekly new unemployment claims rose by 13,000 to 253,000, against forecasts of a 15,000 increase.
The rise, the most in a week since September 2017, was attributed in part to the recent public holiday and partial government services shutdown.
The four-week moving average rose by 5000 to 220,250.
A January job cuts report estimated 53,000 additional planned layoffs against 43,900 for December.
A Chicago PMI dropped 7.1 points to a nonetheless strong expansionary 56.7.
December quarter employment costs rose 0.7% following a 0.8% September quarter increase.
November new home sales jumped 16.9% (to 657,000) following an 8.3% October decline.
Tonight in the US, January employment statistics are keenly anticipated, together with ISM’s influential manufacturing index.
A University of Michigan final January consumer sentiment reading is also due.
Elsewhere, a preliminary euro zone January CPI reading will be in focus, due to Germany’s and France’s deflation figures, reported Wednesday and overnight respectively.
Companies expected to report earnings later today or tonight include: Aon, Chevron, Deutsche Bank, ExxonMobil, Honda Motor, Merck, Mitsubishi UFJ Financial and Sony.
In overnight corporate news, different aspects of reports from Microsoft, Visa (each post-Wednesday US trade) and DowDuPont disappointed, pushing the stocks, and subsequently the DJIA, lower.
General Electric added more than 10% however, on pleasing sales.
Facebook was similarly rewarded for its profit figures, but user and advertiser growth plus revenue also pleased.
Amazon has reported post-US trade, but a 20% sales jump reportedly undershot expectations.