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Before making any investment decision, you should consult your adviser.
Market Opener – 30 May 2018
Local Markets Commentary
The Australian market opens mid-week trade following overnight falls across international equities markets, and ahead of a flurry of influential economic indicators in the US tonight.
In overnight commodities trade, WTI crude fell and Brent settled a little higher.
US gold futures also settled slightly higher.
Iron ore Dalian exchange futures rallied but due to a Singapore public holiday no spot prices (eg China port, 62% Fe) were reported.
The LME traded for the first time this week, copper pushed lower but nickel and aluminium higher.
The $A has traded below US75.00c after falling to US75.15c early yesterday evening.
Locally today, April building approvals are due 11.30am AEST.
Regionally, a 10am AEST address regarding Central Banking in a Changing World by Bank of Japan governor Haruhiko Kuroda will be closely analysed. Japan’s preliminary April retail sales are also expected today, 9.50am AEST.
Overseas Market Commentary
Major European and US equities markets fell overnight, money flows favouring US and German bonds and the yen, and the euro trading at 10-month lows against the $US.
In Italy, six-month, two- and 10-year bonds were sold off for fear political ructions could lead to a messy break from the euro zone. The six-month notes meant the government was facing yield payments at five-year peaks.
Several domestic political parties were reported to be in favour of a new national election on 29 July. The country’s president appointed an interim PM on the weekend, but a caretaker government is yet to be formed.
In Spain, ahead of a parliamentary vote this Friday that could topple the PM on fraud allegations, and lead to a change in government from centre-right to centre-left, 10-year bonds were also sold down.
The US administration meanwhile vowed to continue with preparing a list of goods out of China that would attract a 25% US import tax, and to issue this 15 June.
Separate controls and restrictions, in relation to ‘industrially significant technology’, would be reserved for a later June announcement.
In the meantime, US representatives also confirmed the US would not pull back in the South China Sea.
In US data releases, house prices were reported by Case-Shiller as 0.5% higher, seasonally adjusted, in March, against a 0.8% gain for February.
The Conference Board’ consumer sentiment reading slipped 0.7 to 128.0.
A Texas region manufacturing index rose five points to 26.8.
Tonight in the US, the second of three March quarter GDP readings is keenly anticipated, as are the Federal Reserve’s region-by-region ‘beige book’ economic report, April wholesale inventories, and a May private sector employment report ahead of Friday’snational May employment statistics.
Weekly mortgage applications are also due tonight.
Dick’s Sporting Goods and Michael Kors are scheduled to report earnings, providing broader insight across the retail sector.
Royal Bank of Scotland hosts its AGM
In overnight corporate news, JPMorgan Chase (-~4%) and Morgan Stanley (-5.8%) guidance disappointed, compounding investors’ earlier fears for the finance sector, due to a fall in US bond yields.
Elsewhere, Dixons Carphone traded up to 20% lower on the LSE after issuing a profit warning and revealing it planned to close ~90 outlets.
Kinder Morgan announced a $C4.5B sale of the Trans Mountain pipeline project to Canada’s government.
The Australian market opens mid-week trade following overnight falls across international equities markets, and ahead of a flurry of influential economic indicators in the US tonight.
In overnight commodities trade, WTI crude fell and Brent settled a little higher.
US gold futures also settled slightly higher.
Iron ore Dalian exchange futures rallied but due to a Singapore public holiday no spot prices (eg China port, 62% Fe) were reported.
The LME traded for the first time this week, copper pushed lower but nickel and aluminium higher.
The $A has traded below US75.00c after falling to US75.15c early yesterday evening.
Locally today, April building approvals are due 11.30am AEST.
Regionally, a 10am AEST address regarding Central Banking in a Changing World by Bank of Japan governor Haruhiko Kuroda will be closely analysed. Japan’s preliminary April retail sales are also expected today, 9.50am AEST.
Overseas Market Commentary
Major European and US equities markets fell overnight, money flows favouring US and German bonds and the yen, and the euro trading at 10-month lows against the $US.
In Italy, six-month, two- and 10-year bonds were sold off for fear political ructions could lead to a messy break from the euro zone. The six-month notes meant the government was facing yield payments at five-year peaks.
Several domestic political parties were reported to be in favour of a new national election on 29 July. The country’s president appointed an interim PM on the weekend, but a caretaker government is yet to be formed.
In Spain, ahead of a parliamentary vote this Friday that could topple the PM on fraud allegations, and lead to a change in government from centre-right to centre-left, 10-year bonds were also sold down.
The US administration meanwhile vowed to continue with preparing a list of goods out of China that would attract a 25% US import tax, and to issue this 15 June.
Separate controls and restrictions, in relation to ‘industrially significant technology’, would be reserved for a later June announcement.
In the meantime, US representatives also confirmed the US would not pull back in the South China Sea.
In US data releases, house prices were reported by Case-Shiller as 0.5% higher, seasonally adjusted, in March, against a 0.8% gain for February.
The Conference Board’ consumer sentiment reading slipped 0.7 to 128.0.
A Texas region manufacturing index rose five points to 26.8.
Tonight in the US, the second of three March quarter GDP readings is keenly anticipated, as are the Federal Reserve’s region-by-region ‘beige book’ economic report, April wholesale inventories, and a May private sector employment report ahead of Friday’snational May employment statistics.
Weekly mortgage applications are also due tonight.
Dick’s Sporting Goods and Michael Kors are scheduled to report earnings, providing broader insight across the retail sector.
Royal Bank of Scotland hosts its AGM
In overnight corporate news, JPMorgan Chase (-~4%) and Morgan Stanley (-5.8%) guidance disappointed, compounding investors’ earlier fears for the finance sector, due to a fall in US bond yields.
Elsewhere, Dixons Carphone traded up to 20% lower on the LSE after issuing a profit warning and revealing it planned to close ~90 outlets.
Kinder Morgan announced a $C4.5B sale of the Trans Mountain pipeline project to Canada’s government.