Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 11 Apr 2019
Local Markets Commentary
The Australian market opens today’s trade ahead of key data out of China, a reported 6.5-month extension to 31 October (Halloween) for the UK’s exit from the European Union, and further conference comments from the Reserve Bank of Australia (RBA).
The UK PM is reported to be considering the EU’s offer.
Regionally today, China is expected to release March CPI and PPI 11.30am AEST.
Foreign direct investment figures are also anticipated anytime from today.
Locally, a monthly consumer inflation expectations report is due from the Melbourne Institute 10.30am AEST.
Reserve Bank of Australia (RBA) governor deputy governor Guy Debelle is scheduled to speak via video link on Progress on Benchmark Reform at an ISDA AGM, Hong Kong, 12.30pm AEST.
In overnight commodities trade, oil seesawed higher.
US gold futures (June) gained for a fourth consecutive session.
Iron ore (China port, 62% Fe) continued lower for a second consecutive session, but remained above $US94.5/t.
LME copper again settled lower, and nickel and aluminium turned so.
The $A was pushed higher, to ~US71.70c, after appreciating beyond US71.55c early yesterday evening.
The UK PM is reported to be considering the EU’s offer.
Regionally today, China is expected to release March CPI and PPI 11.30am AEST.
Foreign direct investment figures are also anticipated anytime from today.
Locally, a monthly consumer inflation expectations report is due from the Melbourne Institute 10.30am AEST.
Reserve Bank of Australia (RBA) governor deputy governor Guy Debelle is scheduled to speak via video link on Progress on Benchmark Reform at an ISDA AGM, Hong Kong, 12.30pm AEST.
In overnight commodities trade, oil seesawed higher.
US gold futures (June) gained for a fourth consecutive session.
Iron ore (China port, 62% Fe) continued lower for a second consecutive session, but remained above $US94.5/t.
LME copper again settled lower, and nickel and aluminium turned so.
The $A was pushed higher, to ~US71.70c, after appreciating beyond US71.55c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets mostly opened higher, but intra-sessional sentiment diverged.
The FTSE notably chopped as the UK awaited a European Union (EU) leaders’ post-trade decision on granting an extension, past tomorrow’s (12 April) formerly agreed extended deadline, for the planned UK separation from the EU.
Reports out of lengthy discussions indicated a new 31 October date and a June progress review.
In the US, the treasury secretary declared the US and China had essentially reached agreement on a formal process for enforcing any final bilateral trade agreement.
US Federal Reserve March policy meeting minutes revealed FOMC members advocated for a stay on rates for the remainder of the year, citing soft inflation, international trade flux and the UK’s plans to separate from the European Union (EU).
While some members tempered their views regarding rate rises or falls on conditions including domestic data through the year, there was no general consensus of policy easing.
Earlier, the European Central Bank (ECB) policy meeting produced no change, as anticipated, including a likely stay on rates until at least year’s end.
Notably, president Mario Draghi appeared keen to describe, at the post-meeting conference that regional recession risks remained low.
However, Mr Draghi also qualified remarks, citing protectionist views held by the US president, in particular this week when threatening the region with increased tariffs.
In new US economic indicator releases, March CPI was estimated 0.4% higher for the month and 1.9% higher year-on-year.
February consumer inflation had grown just 0.2%, and the March result proved the best rate of growth in 14 months.
A March budget statement included a $US147B deficit, against a $US234B February shortfall.
Weekly mortgage applications dropped 5.6% amid a 30-year mortgage rates increase, from 4.36% to 4.40%.
The UK’s February trade deficit came in at £4.860B from £5.345B at the end of January.
Industrial production rose 0.6% for the month, following a 0.7% January improvement.
Year-on-year, February industrial output was 0.1% higher, against a 0.3% year-on-year January decline.
February GDP was estimated 0.2% higher for the month and up 2% year-on-year, following respective 0.5% and 1.5% January gains.
For the three months to the end of February GDP grew 0.3%, the same rate as reported for the January quarter.
Tonight in the US, March producer prices and weekly new unemployment claims are due.
Elsewhere, a final March CPI reading is expected for Germany.
Meanwhile, India commences lower house elections today, the voting scheduled to continue through 19 May.
In overnight corporate news, China’s JD.com denied reports it was planning to reduce its workforce by up to eight per cent.
Northrop Grumman was reported to have won a $US3.2B early-warning aircraft supply contract with the US defence.
UK supermarket chain Tesco pleased with better-than-anticipated full year operating profit.
Novartis suffered from an investment bank downgrade, while Nordstrom benefited from an upgrade.
The FTSE notably chopped as the UK awaited a European Union (EU) leaders’ post-trade decision on granting an extension, past tomorrow’s (12 April) formerly agreed extended deadline, for the planned UK separation from the EU.
Reports out of lengthy discussions indicated a new 31 October date and a June progress review.
In the US, the treasury secretary declared the US and China had essentially reached agreement on a formal process for enforcing any final bilateral trade agreement.
US Federal Reserve March policy meeting minutes revealed FOMC members advocated for a stay on rates for the remainder of the year, citing soft inflation, international trade flux and the UK’s plans to separate from the European Union (EU).
While some members tempered their views regarding rate rises or falls on conditions including domestic data through the year, there was no general consensus of policy easing.
Earlier, the European Central Bank (ECB) policy meeting produced no change, as anticipated, including a likely stay on rates until at least year’s end.
Notably, president Mario Draghi appeared keen to describe, at the post-meeting conference that regional recession risks remained low.
However, Mr Draghi also qualified remarks, citing protectionist views held by the US president, in particular this week when threatening the region with increased tariffs.
In new US economic indicator releases, March CPI was estimated 0.4% higher for the month and 1.9% higher year-on-year.
February consumer inflation had grown just 0.2%, and the March result proved the best rate of growth in 14 months.
A March budget statement included a $US147B deficit, against a $US234B February shortfall.
Weekly mortgage applications dropped 5.6% amid a 30-year mortgage rates increase, from 4.36% to 4.40%.
The UK’s February trade deficit came in at £4.860B from £5.345B at the end of January.
Industrial production rose 0.6% for the month, following a 0.7% January improvement.
Year-on-year, February industrial output was 0.1% higher, against a 0.3% year-on-year January decline.
February GDP was estimated 0.2% higher for the month and up 2% year-on-year, following respective 0.5% and 1.5% January gains.
For the three months to the end of February GDP grew 0.3%, the same rate as reported for the January quarter.
Tonight in the US, March producer prices and weekly new unemployment claims are due.
Elsewhere, a final March CPI reading is expected for Germany.
Meanwhile, India commences lower house elections today, the voting scheduled to continue through 19 May.
In overnight corporate news, China’s JD.com denied reports it was planning to reduce its workforce by up to eight per cent.
Northrop Grumman was reported to have won a $US3.2B early-warning aircraft supply contract with the US defence.
UK supermarket chain Tesco pleased with better-than-anticipated full year operating profit.
Novartis suffered from an investment bank downgrade, while Nordstrom benefited from an upgrade.