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Before making any investment decision, you should consult your adviser.
Market Opener – 15 Feb 2019
Local Markets Commentary
The Australian market opens Friday trade with new China data in hand, ahead of further key data out of China today, and significant US news heading towards a US Monday public holiday weekend.
Trade news out of China is also possible later today with China’s president, the US treasury secretary and chief trade negotiator reportedly meeting in Beijing today.
Post-ASX trade yesterday, China announced a 2.8% ($US terms) year-on-year rise in January foreign direct investment, to $US1241.B, against a 23.2% December increase.
China’s January CPI and producer prices are expected before then, at 12.30pm AEDT.
Locally today, Reserve Bank of Australia (RBA) assistant governor financial markets Christopher Kent has delivered remarks at an FX event.
Earnings season continues and ARG trades ex-dividend. Please see p4 for ex-dividend details.
In overnight commodities trade, oil settled higher for a third consecutive session.
US gold futures (April) continued to settle just slightly changed, but this time lower.
Iron ore (China port, 62% Fe) turned higher.
LME copper settled a little lower. Nickel fell.
The $A ultimately changed little after trading at ~US71.05c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets diverged markedly during overnight trade, amid key data releases, currency swings, announcements regarding China-US trade talks and US government funding, and UK parliament confirmation of little progress on UK-European Union (EU) separation plans.
In late US trade, the US president vowed to declare an emergency for the US-Mexico border, at the same time agreeing to sign a funding bill that will support government functions through to September.
Earlier in the UK, sufficient parliamentarians abstained from a vote to affirm renegotiation plans for leaving the EU, to another defeat.
Yesterday, China had reported a January trade surplus drop, but improved exports.
Later, reports emerged China’s president, the US treasury secretary and chief trade negotiator would meet in Beijing today following days of negotiations between other US-China trade officials.
The US administration indicated a two-month pushback was under consideration for any increased taxes on imports from China, should an agreement not be in hand by 1 March.
Among overnight data releases, Germany’s initial December quarter GDP reading came in flat for the three months after retreating 0.2% during the September quarter.
Year-on-year December quarter growth was 0.6% higher.
The figures pushed the euro to a three-month low against the $US but US data subsequently propelled it ~0.3% higher.
A euro zone revised December quarter GDP reading was confirmed at 0.2% growth for the three months and 1.2% year-on-year.
In the US, a series of data releases ultimately pushed the $US from session highs.
December retail sales were deemed responsible for US equities markets falling on opening, the sales dropping 1.2% for the month, reducing the year-on-year improvement from a 4.1% in November to 2.3%.
January producer prices fell 0.1% for the month but were 2% higher year-on-year.
Weekly new unemployment claims rose by 4000.
Tonight in the US, January industrial production is keenly anticipated, but a New York region business activity index, export and import prices and a preliminary University of Michigan January consumer sentiment reading are also scheduled for release.
Elsewhere, the euro zone is expected to reveal December trade figures and the UK January retail sales.
Companies scheduled to report earnings later today or tonight include: Allianz (full year), Baidu, Bridgestone, Deere & Co, ENI, Kraft Heinz, PepsiCo and Royal Bank of Scotland (full year).
In overnight corporate news, Airbus revealed it planned to stop making A380s in 2021.
Coca-Cola was pushed ~8.5% lower on sober earnings and revenue growth forewarnings.
Cisco Systems reported higher-than anticipated revenue post-Wednesday US trade and also raised its dividend and boosted a buy-back.
Chip manufacturer Nvidia reported post-US trade and appears to have pleased.
In the meantime, US equities markets will be closed Monday due to President’s Day commemorations.
The Australian market opens Friday trade with new China data in hand, ahead of further key data out of China today, and significant US news heading towards a US Monday public holiday weekend.
Trade news out of China is also possible later today with China’s president, the US treasury secretary and chief trade negotiator reportedly meeting in Beijing today.
Post-ASX trade yesterday, China announced a 2.8% ($US terms) year-on-year rise in January foreign direct investment, to $US1241.B, against a 23.2% December increase.
China’s January CPI and producer prices are expected before then, at 12.30pm AEDT.
Locally today, Reserve Bank of Australia (RBA) assistant governor financial markets Christopher Kent has delivered remarks at an FX event.
Earnings season continues and ARG trades ex-dividend. Please see p4 for ex-dividend details.
In overnight commodities trade, oil settled higher for a third consecutive session.
US gold futures (April) continued to settle just slightly changed, but this time lower.
Iron ore (China port, 62% Fe) turned higher.
LME copper settled a little lower. Nickel fell.
The $A ultimately changed little after trading at ~US71.05c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets diverged markedly during overnight trade, amid key data releases, currency swings, announcements regarding China-US trade talks and US government funding, and UK parliament confirmation of little progress on UK-European Union (EU) separation plans.
In late US trade, the US president vowed to declare an emergency for the US-Mexico border, at the same time agreeing to sign a funding bill that will support government functions through to September.
Earlier in the UK, sufficient parliamentarians abstained from a vote to affirm renegotiation plans for leaving the EU, to another defeat.
Yesterday, China had reported a January trade surplus drop, but improved exports.
Later, reports emerged China’s president, the US treasury secretary and chief trade negotiator would meet in Beijing today following days of negotiations between other US-China trade officials.
The US administration indicated a two-month pushback was under consideration for any increased taxes on imports from China, should an agreement not be in hand by 1 March.
Among overnight data releases, Germany’s initial December quarter GDP reading came in flat for the three months after retreating 0.2% during the September quarter.
Year-on-year December quarter growth was 0.6% higher.
The figures pushed the euro to a three-month low against the $US but US data subsequently propelled it ~0.3% higher.
A euro zone revised December quarter GDP reading was confirmed at 0.2% growth for the three months and 1.2% year-on-year.
In the US, a series of data releases ultimately pushed the $US from session highs.
December retail sales were deemed responsible for US equities markets falling on opening, the sales dropping 1.2% for the month, reducing the year-on-year improvement from a 4.1% in November to 2.3%.
January producer prices fell 0.1% for the month but were 2% higher year-on-year.
Weekly new unemployment claims rose by 4000.
Tonight in the US, January industrial production is keenly anticipated, but a New York region business activity index, export and import prices and a preliminary University of Michigan January consumer sentiment reading are also scheduled for release.
Elsewhere, the euro zone is expected to reveal December trade figures and the UK January retail sales.
Companies scheduled to report earnings later today or tonight include: Allianz (full year), Baidu, Bridgestone, Deere & Co, ENI, Kraft Heinz, PepsiCo and Royal Bank of Scotland (full year).
In overnight corporate news, Airbus revealed it planned to stop making A380s in 2021.
Coca-Cola was pushed ~8.5% lower on sober earnings and revenue growth forewarnings.
Cisco Systems reported higher-than anticipated revenue post-Wednesday US trade and also raised its dividend and boosted a buy-back.
Chip manufacturer Nvidia reported post-US trade and appears to have pleased.
In the meantime, US equities markets will be closed Monday due to President’s Day commemorations.