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Market Opener – 23 Aug 2018
Local Markets Commentary
The Australian market opens today’s trade with no hiatus expected in national domestic leadership battles, ongoing international trade tensions, mixed overnight international equities and commodities trade leads, another swag of high-profile domestic stocks reporting earnings, and several trading ex-dividend.
Regionally, China is due to raise import taxes on $US16B worth of US goods, as representatives continue two days of trade talks in Washington. The US is scheduled to do the same with goods from China.
Japan’s initial August manufacturing PMI is expected 10.30am AEST.
In addition, locally today, Reserve Bank of Australia (RBA) assistant governor (business services) Lindsay Boulton is scheduled to speak on The Reserve Bank’s Government Banking Business at 1.45pm AEST.
Large-cap domestic stocks trading ex-dividend today include JBH, QBE and WPL. Details can be found on pp4-5.
In overnight commodities trade, oil rallied.
US gold futures settled slightly higher.
LME copper retreated some, nickel slipped, and aluminium turned higher.
The $A was pushed ~US0.10c higher, after dropping beneath US73.40c early yesterday evening, but has been heading lower again this morning.
Overseas Market Commentary
Choppy, swinging trade featured across most major European and US equities markets overnight, the NASDAQ retrieving the greatest ultimate composure, followed by the FTSE 100.
The euro traded at almost two-week highs, the $US index swung before touching three-week lows, and 10-year German sovereign bond yields fell to a record low (~0.33%).
US Federal Reserve policy meeting minutes indicated expectations that wages could soon trend higher, but also unanimous fear that trade argy-bargy could damage US economic progress.
Companies could need fewer employees and consumers could face notable price increases.
However, should data support a strong outlook, it appeared most FOMC members were supportive of another rate rise this year, in order to prevent an inflation breakout.
In addition, the minutes suggested bond purchases could be revisited during the northern hemisphere autumn.
Among new data releases, US July existing home sales fell further, this time by 0.7% for the month and 1.5% year-on-year, mostly due to fewer homes available and associated higher prices. This, even though forecasters had predicted a rise in sales.
Tonight in the US, weekly new unemployment claims are due, together with July new home sales, a June house price index, a regional manufacturing index and Markit’s initial August PMI estimates.
The annual global central bankers’ conference officially commences in Jackson Hole, Wyoming.
Elsewhere, the European Central Bank publishes the minutes of its July policy meeting.
Companies scheduled to report earnings tonight include Alibaba, Asda, Dollar Tree, Gap, HP Inc, John Laing Group, Premier Oil, Quantum Corp and WH Ireland.
Prudential and the Royal Bank of Scotland are among stocks trading ex-dividend on the FTSE 100.
In overnight corporate news, video game producer Zynga was propelled 8% higher on agreement with Walt Disney for the development of a mobile Star Wars game.
US retailer Target appreciated 3% on improved guidance and quarterly figures which exceeded expectations.
Home improver Lowe’s rose 6%, even though same-store sales undershot forecasts. The company venture 3% same-store sales full year growth.
Meanwhile, Credit Suisse revealed it had attempted during the June quarter to avoid falling foul of US sanctions against Russia, by freezing ~5B swiss francs worth of assets linked to Russia.
Numerous markets are closed throughout the Middle East, due to Eid observance.
The Australian market opens today’s trade with no hiatus expected in national domestic leadership battles, ongoing international trade tensions, mixed overnight international equities and commodities trade leads, another swag of high-profile domestic stocks reporting earnings, and several trading ex-dividend.
Regionally, China is due to raise import taxes on $US16B worth of US goods, as representatives continue two days of trade talks in Washington. The US is scheduled to do the same with goods from China.
Japan’s initial August manufacturing PMI is expected 10.30am AEST.
In addition, locally today, Reserve Bank of Australia (RBA) assistant governor (business services) Lindsay Boulton is scheduled to speak on The Reserve Bank’s Government Banking Business at 1.45pm AEST.
Large-cap domestic stocks trading ex-dividend today include JBH, QBE and WPL. Details can be found on pp4-5.
In overnight commodities trade, oil rallied.
US gold futures settled slightly higher.
LME copper retreated some, nickel slipped, and aluminium turned higher.
The $A was pushed ~US0.10c higher, after dropping beneath US73.40c early yesterday evening, but has been heading lower again this morning.
Overseas Market Commentary
Choppy, swinging trade featured across most major European and US equities markets overnight, the NASDAQ retrieving the greatest ultimate composure, followed by the FTSE 100.
The euro traded at almost two-week highs, the $US index swung before touching three-week lows, and 10-year German sovereign bond yields fell to a record low (~0.33%).
US Federal Reserve policy meeting minutes indicated expectations that wages could soon trend higher, but also unanimous fear that trade argy-bargy could damage US economic progress.
Companies could need fewer employees and consumers could face notable price increases.
However, should data support a strong outlook, it appeared most FOMC members were supportive of another rate rise this year, in order to prevent an inflation breakout.
In addition, the minutes suggested bond purchases could be revisited during the northern hemisphere autumn.
Among new data releases, US July existing home sales fell further, this time by 0.7% for the month and 1.5% year-on-year, mostly due to fewer homes available and associated higher prices. This, even though forecasters had predicted a rise in sales.
Tonight in the US, weekly new unemployment claims are due, together with July new home sales, a June house price index, a regional manufacturing index and Markit’s initial August PMI estimates.
The annual global central bankers’ conference officially commences in Jackson Hole, Wyoming.
Elsewhere, the European Central Bank publishes the minutes of its July policy meeting.
Companies scheduled to report earnings tonight include Alibaba, Asda, Dollar Tree, Gap, HP Inc, John Laing Group, Premier Oil, Quantum Corp and WH Ireland.
Prudential and the Royal Bank of Scotland are among stocks trading ex-dividend on the FTSE 100.
In overnight corporate news, video game producer Zynga was propelled 8% higher on agreement with Walt Disney for the development of a mobile Star Wars game.
US retailer Target appreciated 3% on improved guidance and quarterly figures which exceeded expectations.
Home improver Lowe’s rose 6%, even though same-store sales undershot forecasts. The company venture 3% same-store sales full year growth.
Meanwhile, Credit Suisse revealed it had attempted during the June quarter to avoid falling foul of US sanctions against Russia, by freezing ~5B swiss francs worth of assets linked to Russia.
Numerous markets are closed throughout the Middle East, due to Eid observance.