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Market Opener – 25 Mar 2019
Local Markets Commentary
The Australian market commences the last trading week of theMarch quarter following decisive falls across major internationalequities markets overnight Friday and mixed negative keycommodities trade, as a quartet of large-cap domestic stockstrades ex-dividend.Since international trade overnight Friday, several geopoliticalscenarios have further evolved.Senior government MPs have reportedly told the UK PM plans toleave the European Union (EU) will not be approved in the Houseof Commons until she offers a timetable for her resignation intime for negotiations to be taken over by someone else.In the US, an initial summary of the Mueller investigation’s reportincludes the conclusion that no evidence was uncovered of anycrime committed by the president or his representatives inrelation to alleged collusion with Russia during the 2016 USpresidential campaign
Overseas Markets Commentary
Major European and US equities markets fell decisively overnightFriday, manufacturing updates on both sides of the Atlanticunderscoring growing international economic slowdown dismay.In addition, in the US, the president revealed plans to cancelplanned new economic sanctions against North Korea, hours afterNorth Korea revealed it was withdrawing its border liaisonpresence out of South Korea.Meanwhile in the UK, PM Theresa May indicated a new votegoverning the UK’s plans to leave the European Union (EU) wasunlikely this coming week, should no additional support bedemonstrated.Approval was a condition of the other EU leaders approving lateThursday the longer of two possible extensions to the separation.In overnight Friday data releases, euro zone initial March PMIsdisappointed, in particular the manufacturing sector reading,which fell 1.7 points to 47.6.The services sector estimate slipped by 0.1 to 52.7.Germany’s manufacturing sector activity index dropped to adecidedly contractionary 44.7, from 47.6.The services PMI came in at 54.9 however, down 0.4 for themonth, although this sector does not carry as much national GDPweight as in the US.In the US, the Markit March manufacturing PMI was initiallyestimated at 52.5, down 0.5 for the month and the lowest readingsince June 2017.The services sector activity index fell by 1.2 to 54.8.US 10-year sovereign bond yields subsequently fell below thosefor three-month bonds.The February budget statement included a $US234B deficitagainst a $US9B January surplus.
The Australian market commences the last trading week of theMarch quarter following decisive falls across major internationalequities markets overnight Friday and mixed negative keycommodities trade, as a quartet of large-cap domestic stockstrades ex-dividend.Since international trade overnight Friday, several geopoliticalscenarios have further evolved.Senior government MPs have reportedly told the UK PM plans toleave the European Union (EU) will not be approved in the Houseof Commons until she offers a timetable for her resignation intime for negotiations to be taken over by someone else.In the US, an initial summary of the Mueller investigation’s reportincludes the conclusion that no evidence was uncovered of anycrime committed by the president or his representatives inrelation to alleged collusion with Russia during the 2016 USpresidential campaign
Overseas Markets Commentary
Major European and US equities markets fell decisively overnightFriday, manufacturing updates on both sides of the Atlanticunderscoring growing international economic slowdown dismay.In addition, in the US, the president revealed plans to cancelplanned new economic sanctions against North Korea, hours afterNorth Korea revealed it was withdrawing its border liaisonpresence out of South Korea.Meanwhile in the UK, PM Theresa May indicated a new votegoverning the UK’s plans to leave the European Union (EU) wasunlikely this coming week, should no additional support bedemonstrated.Approval was a condition of the other EU leaders approving lateThursday the longer of two possible extensions to the separation.In overnight Friday data releases, euro zone initial March PMIsdisappointed, in particular the manufacturing sector reading,which fell 1.7 points to 47.6.The services sector estimate slipped by 0.1 to 52.7.Germany’s manufacturing sector activity index dropped to adecidedly contractionary 44.7, from 47.6.The services PMI came in at 54.9 however, down 0.4 for themonth, although this sector does not carry as much national GDPweight as in the US.In the US, the Markit March manufacturing PMI was initiallyestimated at 52.5, down 0.5 for the month and the lowest readingsince June 2017.The services sector activity index fell by 1.2 to 54.8.US 10-year sovereign bond yields subsequently fell below thosefor three-month bonds.The February budget statement included a $US234B deficitagainst a $US9B January surplus.