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Market Opener – 02 Sep 2019
Local Markets Commentary
The Australian market opens a new month’s trade with a barrage of domestic economic indicator reports ahead of a Reserve Bank of Australia policy meeting tomorrow, influential data out of China over the weekend, and new China data due today, during a US Monday public holiday weekend.
In addition, China and the US have yesterday each imposed previously-flagged new import taxes on select goods.
The US president offered, also yesterday, that background discussions continued with China and that face-to-face trade talks were still anticipated sometime this month.
Nonetheless, US equities futures have fallen, some of this attributed to Hurricane Dorian.
In other developments since Friday trade, Argentina yesterday imposed new regulations after the nation’s reserves dropped by $US3B over Thursday-Friday. The new rules include financial institutions and businesses needing authorisation to sell pesos for foreign currency, and all exporters required to bring back to Argentina earnings from international sales.
In regional data releases since Friday trade, China has reported an ongoing contractionary 49.5 August manufacturing PMI, following 49.7 for July, and expansionary 53.8 services sector activity index, 0.1 higher than for July.
Today, Caixin releases its China August manufacturing PMI, 11.45am AEST.
An August manufacturing PMI is due for Japan 10.30am AEST.
Locally today, the Australian Bureau of Statistics (ABS) publishes its June quarter Business Indicators report, which includes company profits, sales, inventories and wages, 11.30am AEST.
Pre-trade, AiG releases its August manufacturing PMI, and CoreLogic an August capital city property price report.
An inflation gauge report, and the ANZ’s monthly job advertisements summary are also due this morning, ahead of the Reserve Bank of Australia’s (RBA) monetary policy meeting tomorrow.
Stocks trading ex-dividend today include: BEN, FMG, NHF, ORG, OZL and QAN. Please see p4 for a detailed list.
In overnight Friday commodities trade, oil fell.
US gold futures (December) declined moderately.
Iron ore (Nymex CFR China, 62% Fe) recorded another modest fall.
LME copper turned and fell. Nickel soared however, on significant developments for two issues, one considered by traders throughout last week and the other over recent weeks, each potentially affecting production respectively out of PNG and Indonesia.
The $A appreciated to ~US67.30c after trading at ~US67.20c early Friday evening.
In addition, China and the US have yesterday each imposed previously-flagged new import taxes on select goods.
The US president offered, also yesterday, that background discussions continued with China and that face-to-face trade talks were still anticipated sometime this month.
Nonetheless, US equities futures have fallen, some of this attributed to Hurricane Dorian.
In other developments since Friday trade, Argentina yesterday imposed new regulations after the nation’s reserves dropped by $US3B over Thursday-Friday. The new rules include financial institutions and businesses needing authorisation to sell pesos for foreign currency, and all exporters required to bring back to Argentina earnings from international sales.
In regional data releases since Friday trade, China has reported an ongoing contractionary 49.5 August manufacturing PMI, following 49.7 for July, and expansionary 53.8 services sector activity index, 0.1 higher than for July.
Today, Caixin releases its China August manufacturing PMI, 11.45am AEST.
An August manufacturing PMI is due for Japan 10.30am AEST.
Locally today, the Australian Bureau of Statistics (ABS) publishes its June quarter Business Indicators report, which includes company profits, sales, inventories and wages, 11.30am AEST.
Pre-trade, AiG releases its August manufacturing PMI, and CoreLogic an August capital city property price report.
An inflation gauge report, and the ANZ’s monthly job advertisements summary are also due this morning, ahead of the Reserve Bank of Australia’s (RBA) monetary policy meeting tomorrow.
Stocks trading ex-dividend today include: BEN, FMG, NHF, ORG, OZL and QAN. Please see p4 for a detailed list.
In overnight Friday commodities trade, oil fell.
US gold futures (December) declined moderately.
Iron ore (Nymex CFR China, 62% Fe) recorded another modest fall.
LME copper turned and fell. Nickel soared however, on significant developments for two issues, one considered by traders throughout last week and the other over recent weeks, each potentially affecting production respectively out of PNG and Indonesia.
The $A appreciated to ~US67.30c after trading at ~US67.20c early Friday evening.
Overseas Market Commentary
Overnight Friday major European and US equities markets trade demonstrated broad uncertainties facing investors.
These included the pending increase in US tariffs on additional goods from China Sunday (yesterday), PMI figures due out of China Saturday, the remaining threat of a potential national election in Italy, and the resumption of the UK parliament, from the summer recess, Wednesday this week.
The UK PM had last week gained permission to again shut down parliament, for five weeks from mid-September, ahead of the 31 October deadline for the UK’s planned separation from the European Union. The number of sitting days was thought insufficient for MPs to secure legislation preventing this occurring without agreed arrangements in place, prompting calls for a no-confidence vote against the PM this week, and raising the prospect of a closer-than-anticipated national election.
Elsewhere, tensions remained high in Hong Kong, with the prospect of an escalation of protests and reactions from authorities over the weekend and western relationships with Iran simmered.
In new and mixed data releases overnight Friday, the euro zone’s preliminary August CPI estimate represented 1% year-on-year growth.
Germany’s July retail sales dropped 2.2% for the month, following a 3.0% June rise, but were 4.4% higher than for July 2018.
In the US, July personal income rose just 0.1% for the month, but spending increased by 0.6%.
This followed respective 0.5% and 0.3% June gains.
A University of Michigan final August consumer sentiment reading of 89.8 represented an 8.6-point drop for the month, however.
The August Chicago PMI improved six points, from contraction, to an expansionary 50.4.
Tonight, manufacturing sector activity indices are due for the UK and euro zone.
US markets will be closed tonight due to a public holiday.
These included the pending increase in US tariffs on additional goods from China Sunday (yesterday), PMI figures due out of China Saturday, the remaining threat of a potential national election in Italy, and the resumption of the UK parliament, from the summer recess, Wednesday this week.
The UK PM had last week gained permission to again shut down parliament, for five weeks from mid-September, ahead of the 31 October deadline for the UK’s planned separation from the European Union. The number of sitting days was thought insufficient for MPs to secure legislation preventing this occurring without agreed arrangements in place, prompting calls for a no-confidence vote against the PM this week, and raising the prospect of a closer-than-anticipated national election.
Elsewhere, tensions remained high in Hong Kong, with the prospect of an escalation of protests and reactions from authorities over the weekend and western relationships with Iran simmered.
In new and mixed data releases overnight Friday, the euro zone’s preliminary August CPI estimate represented 1% year-on-year growth.
Germany’s July retail sales dropped 2.2% for the month, following a 3.0% June rise, but were 4.4% higher than for July 2018.
In the US, July personal income rose just 0.1% for the month, but spending increased by 0.6%.
This followed respective 0.5% and 0.3% June gains.
A University of Michigan final August consumer sentiment reading of 89.8 represented an 8.6-point drop for the month, however.
The August Chicago PMI improved six points, from contraction, to an expansionary 50.4.
Tonight, manufacturing sector activity indices are due for the UK and euro zone.
US markets will be closed tonight due to a public holiday.