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Before making any investment decision, you should consult your adviser.
Market Opener – 19 Apr 2018
Local Markets Commentary
The Australian market commences today’s trade on mostly lacklustre overnight international equities trade leads, but also a batch of robust commodities price gains, ahead of influential domestic data.
In overnight commodities trade, US gold futures turned to settle modestly higher. Oil continued higher with a rally.
Iron ore (China port, 62% Fe) extended Tuesday’s gain.
LME base metals mostly rallied, nickel and aluminium settling substantially higher.
The $A consequently appreciated to ~US77.85c after trading at US77.55c early yesterday evening, and has continued higher this morning.
Locally today, the Australian Bureau of Statistics (ABS) releases March employment statistics 11.30am AEST.
NAB’s March quarter business conditions and confidence report is also expected this morning.
This morning, New Zealand has reported 1.1% annualised March quarter inflation growth, supported by a 0.5% rise for the three months.
Overseas Market Commentary
Most major European and US equities markets settled overnight with lacklustre results, following largely choppy trade, the FTSE 100 again proving the exception, on domestic data.
China had earlier revealed a 178.6% deposit levy on US sorghum, from yesterday. The move was described as ‘temporary’ but followed a sorghum supply review which commenced in February.
The International Monetary Fund’s (IMF) global financial stability report provided further detail supporting comments from the previous session regarding private and government international debt.
This was estimated at $US164 trillion, representing 225% of global GDP.
The IMF also cited international trade tension as a burgeoning risk.
Among data releases, UK March CPI growth slowed 0.2% to 2.5% on an annual basis, pushing the British pound lower and supporting the minerals sector.
Analysts ventured the chances of a Bank of England May rate rise had not only diminished, but so had those of a potential change in August, should the pace of inflation declines continue.
A euro zone final March CPI reading confirmed 1.0% growth for the month, following 0.2% in February. Annualised CPI growth stood at 1.3%.
In the US, the Federal Reserve’s district-by-district ‘beige book’ economic report listed improved business borrowing and consumer spending among factors supporting economic progress.
Trade concerns were commonly highlighted by several sectors across districts, however.
Tonight in the US, weekly new unemployment claims are due, together with a Philadelphia Fed manufacturing index and Conference Boarding leading economic index update.
In addition, US Federal Reserve vice chair Randal Quarles meets with the Senate banking committee in a half-yearly update on financial systems supervision and regulation.
Bank of NY Mellon, BHP Billiton, ETrade, Novartis, Sky, Unilever and ZTE are among companies scheduled to report earnings or provide updates.
BAE Systems and Lloyds trade ex-dividend on the FTSE 100.
In overnight corporate news, Netflix revealed it would outlay $US1B on new productions in the coming year, with a focus on the European market.
US railroad operator CSX reported 100% higher profit on steady revenue and was pushed ~8% higher.
Morgan Stanley booked a record quarterly profit.
IBM dropped more than 7.5% on margins and an outlook that failed to impress.
The Australian market commences today’s trade on mostly lacklustre overnight international equities trade leads, but also a batch of robust commodities price gains, ahead of influential domestic data.
In overnight commodities trade, US gold futures turned to settle modestly higher. Oil continued higher with a rally.
Iron ore (China port, 62% Fe) extended Tuesday’s gain.
LME base metals mostly rallied, nickel and aluminium settling substantially higher.
The $A consequently appreciated to ~US77.85c after trading at US77.55c early yesterday evening, and has continued higher this morning.
Locally today, the Australian Bureau of Statistics (ABS) releases March employment statistics 11.30am AEST.
NAB’s March quarter business conditions and confidence report is also expected this morning.
This morning, New Zealand has reported 1.1% annualised March quarter inflation growth, supported by a 0.5% rise for the three months.
Overseas Market Commentary
Most major European and US equities markets settled overnight with lacklustre results, following largely choppy trade, the FTSE 100 again proving the exception, on domestic data.
China had earlier revealed a 178.6% deposit levy on US sorghum, from yesterday. The move was described as ‘temporary’ but followed a sorghum supply review which commenced in February.
The International Monetary Fund’s (IMF) global financial stability report provided further detail supporting comments from the previous session regarding private and government international debt.
This was estimated at $US164 trillion, representing 225% of global GDP.
The IMF also cited international trade tension as a burgeoning risk.
Among data releases, UK March CPI growth slowed 0.2% to 2.5% on an annual basis, pushing the British pound lower and supporting the minerals sector.
Analysts ventured the chances of a Bank of England May rate rise had not only diminished, but so had those of a potential change in August, should the pace of inflation declines continue.
A euro zone final March CPI reading confirmed 1.0% growth for the month, following 0.2% in February. Annualised CPI growth stood at 1.3%.
In the US, the Federal Reserve’s district-by-district ‘beige book’ economic report listed improved business borrowing and consumer spending among factors supporting economic progress.
Trade concerns were commonly highlighted by several sectors across districts, however.
Tonight in the US, weekly new unemployment claims are due, together with a Philadelphia Fed manufacturing index and Conference Boarding leading economic index update.
In addition, US Federal Reserve vice chair Randal Quarles meets with the Senate banking committee in a half-yearly update on financial systems supervision and regulation.
Bank of NY Mellon, BHP Billiton, ETrade, Novartis, Sky, Unilever and ZTE are among companies scheduled to report earnings or provide updates.
BAE Systems and Lloyds trade ex-dividend on the FTSE 100.
In overnight corporate news, Netflix revealed it would outlay $US1B on new productions in the coming year, with a focus on the European market.
US railroad operator CSX reported 100% higher profit on steady revenue and was pushed ~8% higher.
Morgan Stanley booked a record quarterly profit.
IBM dropped more than 7.5% on margins and an outlook that failed to impress.