Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 07 Feb 2018
Local Markets Commentary
The Australian market commences mid-week trade following a bounce on US equities markets during second-half overnight trade.
In notably less buoyant commodities trade, US gold futures again settled lower. Oil continued to fall.
Iron ore (China port, 62% Fe) extended this week’s gains but notably more modestly.
LME copper, nickel and aluminium turned and fell.
The $A rose to ~US78.90c after trading at ~US78.70c early yesterday evening.
In local economic data releases, AiG is due to release its January construction sector activity index pre-trade.
The Australian Bureau of Statistics also publishes a living cost indices (based on four household types) report today.
Regionally, New Zealand markets are resuming today from a Tuesday public holiday.
Overseas Market Commentary
Remaining jitters were evident from early trade across major European and US equities markets overnight, but key US indices recovered amid some positive commentary from public figures.
The $US gained early, but subsequently depreciated, and US 10-year government bond yields slipped a little. Oil and gold continued lower.
US treasury secretary Steven Mnuchin offered the stock market rout was not related to any financial instability, and a Federal Reserve regional president ventured that the pace of job creation was not necessarily pointing to higher inflation.
Meanwhile, the US House of Representatives began to consider an extension to short-term funding to keep government services operating past tomorrow night (AEDST). Defence and immigration measures remain sticking points and the Senate needs to vote following the House.
In overnight data releases, Germany’s December factory orders were reported 3.8% higher for the month, following a 0.1% slip in November.
In the US, the December trade deficit grew 5.3% to $US53.1B, the most in almost nine years, mostly due to record imports. These rose 2.9% to $US210.8B, in part due to higher oil prices.
Exports increase 2.5% to $US137.5B, representing a more than three-year peak.
Tonight in the US, December credit figures and weekly mortgage applications are due.
GlaxoSmithKline, Hasbro, Mazda Motor, Rio Tinto, Sanofi, Softbank, Tesla and Twenty-First Century Fox are among companies scheduled to report earnings or provide trading updates.
In overnight corporate news, BP delivered a commendable December quarter report, which pushed the group’s 2017 profit to $US6.2B, largely supported by a 12% rise in annual output to 2.47MMbbl/d.
BP also revealed plans for further buy-backs, after purchasing $US343M worth of its stock during the December quarter, and predicted FIDs on six projects, rather than the previously targeted five.
Toyota Motor Corp raised its full-year profit forecast after an almost 100% increase in December quarter profit.
Alphabet was reported to be outlaying $US2B for the Chelsea Market building in Manhattan.
Archer Daniels Midland announced plans to grow business in Asia and South America.
The Australian market commences mid-week trade following a bounce on US equities markets during second-half overnight trade.
In notably less buoyant commodities trade, US gold futures again settled lower. Oil continued to fall.
Iron ore (China port, 62% Fe) extended this week’s gains but notably more modestly.
LME copper, nickel and aluminium turned and fell.
The $A rose to ~US78.90c after trading at ~US78.70c early yesterday evening.
In local economic data releases, AiG is due to release its January construction sector activity index pre-trade.
The Australian Bureau of Statistics also publishes a living cost indices (based on four household types) report today.
Regionally, New Zealand markets are resuming today from a Tuesday public holiday.
Overseas Market Commentary
Remaining jitters were evident from early trade across major European and US equities markets overnight, but key US indices recovered amid some positive commentary from public figures.
The $US gained early, but subsequently depreciated, and US 10-year government bond yields slipped a little. Oil and gold continued lower.
US treasury secretary Steven Mnuchin offered the stock market rout was not related to any financial instability, and a Federal Reserve regional president ventured that the pace of job creation was not necessarily pointing to higher inflation.
Meanwhile, the US House of Representatives began to consider an extension to short-term funding to keep government services operating past tomorrow night (AEDST). Defence and immigration measures remain sticking points and the Senate needs to vote following the House.
In overnight data releases, Germany’s December factory orders were reported 3.8% higher for the month, following a 0.1% slip in November.
In the US, the December trade deficit grew 5.3% to $US53.1B, the most in almost nine years, mostly due to record imports. These rose 2.9% to $US210.8B, in part due to higher oil prices.
Exports increase 2.5% to $US137.5B, representing a more than three-year peak.
Tonight in the US, December credit figures and weekly mortgage applications are due.
GlaxoSmithKline, Hasbro, Mazda Motor, Rio Tinto, Sanofi, Softbank, Tesla and Twenty-First Century Fox are among companies scheduled to report earnings or provide trading updates.
In overnight corporate news, BP delivered a commendable December quarter report, which pushed the group’s 2017 profit to $US6.2B, largely supported by a 12% rise in annual output to 2.47MMbbl/d.
BP also revealed plans for further buy-backs, after purchasing $US343M worth of its stock during the December quarter, and predicted FIDs on six projects, rather than the previously targeted five.
Toyota Motor Corp raised its full-year profit forecast after an almost 100% increase in December quarter profit.
Alphabet was reported to be outlaying $US2B for the Chelsea Market building in Manhattan.
Archer Daniels Midland announced plans to grow business in Asia and South America.