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Before making any investment decision, you should consult your adviser.
Market Opener – 15 Dec 2017
Local Markets Commentary
The Australian market opens Friday trade on mostly positive key commodities but negative international equities leads, as markets head towards the last full week trade ahead of the end-of-year holiday season.
In overnight commodities trade, gold futures continued higher while WTI crude swung so.
Iron ore (China port, 62% Fe) was pushed lower for a second consecutive session.
LME copper extended Wednesday’s gains. Aluminium swung higher and rallied.
The $A appreciated to ~US76.70c, after trading at ~US76.60c early yesterday evening.
Overseas Market Commentary
Choppy trade largely featured as major European and US equities markets headed lower overnight, investors digesting central bank commentary and major corporate announcements.
Uncertainty regarding the advance of proposed US tax legislation before year’s end was also cited as a major cause for the caution demonstrated on US markets.
In the meantime, the European Central Bank maintained status quo policy at its last policy meeting for the year.
President Mario Draghi confirmed in a post-meeting conference that regional inflation targets would likely prove challenging for some time yet.
The Bank of England also held its position after lifting the main lending rate to 0.50% last month, and despite an ~3% CPI rate, ventured it was not concerned at any inflationary pressure in the medium-term.
Among data releases, US November retail sales were reported 58% higher year-on-year.
Weekly new unemployment claims fell further than anticipated.
November import and export prices were estimated 0.7% and 0.5% higher respectively, mostly on fuel price increases, following 0.1% gains for each in October.
Markit calculated a 53.0 initial December composite, PMI, 1.5 points lower than the final figure for November.
The euro zone’s initial December PMIs produced an almost seven-year peak of 58.0 for the composite index, 0.5 higher for the month.
Germany’s preliminary December composite, manufacturing and services PMIs also exceeded expectations.
The UK’s November retail sales came in at a 1.6% annual improvement, following a 0.3% pullback in October and forecasts of a 0.3% gain. For the month, sales rose 1.1% against 0.5% for October.
Tonight in the US, November industrial production and a New York region manufacturing index are due.
In overnight corporate news, Twitter was reported to be facing a takeover bid.
Meanwhile, the (US) Federal Communications Commission effectively cancelled regulations designed to deliver internet neutrality, prompting expectations of major operational change but also several official protests.
Twenty-First Century Fox confirmed an agreement to sell select assets (including its movie business and a 39% Sky holding) to Walt Disney Co for ~$US52.5M. This pushed the stocks ~4% and ~2% higher respectively.
Israel’s generic drug specialist Teva Pharmaceutical announced an ~25% workforce chop (~14,000 jobs) and the suspension of dividends in an attempt to reduce debt.
The Australian market opens Friday trade on mostly positive key commodities but negative international equities leads, as markets head towards the last full week trade ahead of the end-of-year holiday season.
In overnight commodities trade, gold futures continued higher while WTI crude swung so.
Iron ore (China port, 62% Fe) was pushed lower for a second consecutive session.
LME copper extended Wednesday’s gains. Aluminium swung higher and rallied.
The $A appreciated to ~US76.70c, after trading at ~US76.60c early yesterday evening.
Overseas Market Commentary
Choppy trade largely featured as major European and US equities markets headed lower overnight, investors digesting central bank commentary and major corporate announcements.
Uncertainty regarding the advance of proposed US tax legislation before year’s end was also cited as a major cause for the caution demonstrated on US markets.
In the meantime, the European Central Bank maintained status quo policy at its last policy meeting for the year.
President Mario Draghi confirmed in a post-meeting conference that regional inflation targets would likely prove challenging for some time yet.
The Bank of England also held its position after lifting the main lending rate to 0.50% last month, and despite an ~3% CPI rate, ventured it was not concerned at any inflationary pressure in the medium-term.
Among data releases, US November retail sales were reported 58% higher year-on-year.
Weekly new unemployment claims fell further than anticipated.
November import and export prices were estimated 0.7% and 0.5% higher respectively, mostly on fuel price increases, following 0.1% gains for each in October.
Markit calculated a 53.0 initial December composite, PMI, 1.5 points lower than the final figure for November.
The euro zone’s initial December PMIs produced an almost seven-year peak of 58.0 for the composite index, 0.5 higher for the month.
Germany’s preliminary December composite, manufacturing and services PMIs also exceeded expectations.
The UK’s November retail sales came in at a 1.6% annual improvement, following a 0.3% pullback in October and forecasts of a 0.3% gain. For the month, sales rose 1.1% against 0.5% for October.
Tonight in the US, November industrial production and a New York region manufacturing index are due.
In overnight corporate news, Twitter was reported to be facing a takeover bid.
Meanwhile, the (US) Federal Communications Commission effectively cancelled regulations designed to deliver internet neutrality, prompting expectations of major operational change but also several official protests.
Twenty-First Century Fox confirmed an agreement to sell select assets (including its movie business and a 39% Sky holding) to Walt Disney Co for ~$US52.5M. This pushed the stocks ~4% and ~2% higher respectively.
Israel’s generic drug specialist Teva Pharmaceutical announced an ~25% workforce chop (~14,000 jobs) and the suspension of dividends in an attempt to reduce debt.