Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 25 Oct 2018
Local Markets Commentary
The Australian market opens today’s trade again following largely negative overnight international trade sentiment, but also with a substantial list of influential domestic stocks hosting AGMs and/or providing quarterly figures and updates, and higher US equities futures.
In overnight commodities trade, WTI crude settled higher, but Brent ultimately extended Tuesday’s fall.
US (December) gold futures swung lower.
Iron ore (China port, 62% Fe) extended this week’s gains.
LME copper and nickel continued lower.
The $A fell to ~US70.60c after holding at ~US70.85c early yesterday evening.
Overseas Market Commentary
US equities markets trended lower through most overnight trade, accelerating declines in late trade to settle at session lows.
Major European indices traded largely positive but were dragged to session lows in the final hour of trade, when weak US equities sentiment was confirmed.
Again, there was no shortage of economic data, corporate reports and outlooks and geopolitical chop to consider.
Among a swag of US economic indicator releases, the Federal Reserve’s region-by-region economic summaries confirmed most – moderate growth, but the ‘beige book’ report also included concerns regarding higher shipping fees and manufacturing costs, forcing some manufacturers to raise prices.
September new home sales dropped 5.5%, to 553,000, the least in 21 months. In addition, figures for August, July and June were revised lower.
August house prices were reported 0.3% higher, following a 0.2% July rise.
Markit’s initial October PMI estimates came in at 55.9 for manufacturing, 0.3 higher for the month, and 54.7 for the services sector, 1.2 higher than for September.
Weekly mortgage applications rose 4.9% as 30-year rates steadied.
Germany’s initial October PMI readings disappointed, manufacturing falling from 53.7 to 52.3 and services sector activity from 55.9 to 53.6.
The respective overall euro zone estimates came in at 52.1, down 1.1, and 53.3, down 1.4.
The euro dropped against the $US following the new figures. The British pound also declined, this attributed to speculation regarding potential emergency measures, such as to ensure supplies, should the UK separate from the European Union without favourable deals in place.
Tonight in the US, the week’s data deluge continues, this time including durable goods, wholesale inventories, pending home sales and unemployment claims reports, plus a regional manufacturing index.
Elsewhere, the European Central Bank (ECB) holds a policy meeting followed by an outcomes statement and press conference.
Another avalanche of high-profile companies is scheduled to reveal earnings or provide updates later today or tonight. Stocks include: Alphabet (Google parent), Amazon, Bristol-Myers Squibb, Canon, Comcast, ConocoPhillips, Daimler, Dow Chemical, General Electric, Hitachi Construction Machinery, Hyundai Motor, Intel, Lloyds Banking, Merck, Newmont Mining, Puma, Raytheon, ResMed, Snap, Twitter, UBS, WPP, Xerox and ZTE Corp.
ITV and Rolls-Royce trade ex-dividend on the FTSE 100.
In overnight corporate news, many large-cap international stocks across several sectors reported, including Boeing, which was pushed more than 3% higher after raising full-year revenue and profit forecasts.
Communications major AT&T failed to please, however, and settled more than 6% lower.
Chip manufacturer Texas Instruments also suffered a price drop after warning that its market would ‘soften’.
Free port-McMoRan reported greater-than-expected copper-gold production and grades, and hence 13% higher revenue, despite 5% and 8% year-on-year price falls for copper and gold respectively.
Mixed results and forecasts came from Advanced Micro Devices (another chip maker), Ford Motor, Microsoft, Tesla and Visa post-US trade. These will likely influence select trade tonight.
The Australian market opens today’s trade again following largely negative overnight international trade sentiment, but also with a substantial list of influential domestic stocks hosting AGMs and/or providing quarterly figures and updates, and higher US equities futures.
In overnight commodities trade, WTI crude settled higher, but Brent ultimately extended Tuesday’s fall.
US (December) gold futures swung lower.
Iron ore (China port, 62% Fe) extended this week’s gains.
LME copper and nickel continued lower.
The $A fell to ~US70.60c after holding at ~US70.85c early yesterday evening.
Overseas Market Commentary
US equities markets trended lower through most overnight trade, accelerating declines in late trade to settle at session lows.
Major European indices traded largely positive but were dragged to session lows in the final hour of trade, when weak US equities sentiment was confirmed.
Again, there was no shortage of economic data, corporate reports and outlooks and geopolitical chop to consider.
Among a swag of US economic indicator releases, the Federal Reserve’s region-by-region economic summaries confirmed most – moderate growth, but the ‘beige book’ report also included concerns regarding higher shipping fees and manufacturing costs, forcing some manufacturers to raise prices.
September new home sales dropped 5.5%, to 553,000, the least in 21 months. In addition, figures for August, July and June were revised lower.
August house prices were reported 0.3% higher, following a 0.2% July rise.
Markit’s initial October PMI estimates came in at 55.9 for manufacturing, 0.3 higher for the month, and 54.7 for the services sector, 1.2 higher than for September.
Weekly mortgage applications rose 4.9% as 30-year rates steadied.
Germany’s initial October PMI readings disappointed, manufacturing falling from 53.7 to 52.3 and services sector activity from 55.9 to 53.6.
The respective overall euro zone estimates came in at 52.1, down 1.1, and 53.3, down 1.4.
The euro dropped against the $US following the new figures. The British pound also declined, this attributed to speculation regarding potential emergency measures, such as to ensure supplies, should the UK separate from the European Union without favourable deals in place.
Tonight in the US, the week’s data deluge continues, this time including durable goods, wholesale inventories, pending home sales and unemployment claims reports, plus a regional manufacturing index.
Elsewhere, the European Central Bank (ECB) holds a policy meeting followed by an outcomes statement and press conference.
Another avalanche of high-profile companies is scheduled to reveal earnings or provide updates later today or tonight. Stocks include: Alphabet (Google parent), Amazon, Bristol-Myers Squibb, Canon, Comcast, ConocoPhillips, Daimler, Dow Chemical, General Electric, Hitachi Construction Machinery, Hyundai Motor, Intel, Lloyds Banking, Merck, Newmont Mining, Puma, Raytheon, ResMed, Snap, Twitter, UBS, WPP, Xerox and ZTE Corp.
ITV and Rolls-Royce trade ex-dividend on the FTSE 100.
In overnight corporate news, many large-cap international stocks across several sectors reported, including Boeing, which was pushed more than 3% higher after raising full-year revenue and profit forecasts.
Communications major AT&T failed to please, however, and settled more than 6% lower.
Chip manufacturer Texas Instruments also suffered a price drop after warning that its market would ‘soften’.
Free port-McMoRan reported greater-than-expected copper-gold production and grades, and hence 13% higher revenue, despite 5% and 8% year-on-year price falls for copper and gold respectively.
Mixed results and forecasts came from Advanced Micro Devices (another chip maker), Ford Motor, Microsoft, Tesla and Visa post-US trade. These will likely influence select trade tonight.