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Market Opener – 30 Jan 2019
Local Markets Commentary
The Australian market commences today’s trade following overnight gains for key commodity prices, ahead of influential domestic data today and new China-US trade talks tonight, and with European negotiators this morning having rejected a UK parliamentary-approved proposal to reconsider UK-EU separation arrangements regarding Ireland’s border.
The proposal has been considered the only way for sufficient UK parliamentarians to consider approving a final EU withdrawal deal.
This comes after the European Central Bank earlier this week conceded disappointment at euro zone economic progress.
In addition, further US-China trade and US-Venezuela leadership-sanctions-military involvement commentary could influence some regional sentiment today.
In largely positive overnight commodities trade, oil swung higher and rallied.
US gold futures (April) settled higher for a third consecutive session.
Iron ore (China port 62% Fe fines) also continued to gain.
LME copper, nickel and aluminium rose decisively.
The $A headed towards US71.50c after trading at ~US71.65c early yesterday evening.
Locally today, December quarter CPI growth is due 11.30am AEDT.
In addition, a barrage of December quarter reports is anticipated through the end of the month.
Overseas Market Commentary
Swinging, choppy trade featured across most major European and US equities markets overnight, as investors tried to assess the state of relations between the US and China, and the US and Venezuela, plus earnings and outlooks from high-profile, large-cap stocks, while awaiting the outcome of UK parliamentary votes regarding the planned UK-European Union (EU) separation.
In the UK post-FTSE trade, the House of Commons approved (318-310) a proposal to prevent the UK separating from the European Union without a withdrawal agreement and framework for the future.
The house also voted against (321-298) a move to enable parliament to push back the planned 29 March separation should parliament not be in favour of any proposed withdrawal deal.
Another, and perhaps the most crucial, proposal was approved (317-301), to enable the PM to seek to negotiate with EU leaders a new arrangement regarding border arrangements with EU member Ireland.
A spokesperson for the European Council was quick to announce that president Donald Tusk was not considering renegotiating, however.
The US, in the meantime, had remained embroiled in Huawei allegations and China’s associated ire, and also imposed oil sanctions against Venezuela, at the same time a security official was noted carrying a message indicating possible US military involvement in the Venezuelan leadership confrontation.
Official US-China trade talks are due to resume in Washington tonight.
Among US data releases, Conference Board’s January consumer confidence index was calculated 6.4 points lower than for December (revised), at 120.2. The reading represented an ~18-month low and undershot forecasts.
A Case-Shiller November house price index rose 4.7% year-on-year, the least in almost four years.
Tonight in the US, the Federal Reserve announces (early tomorrow AEDT) outcomes from its policy meeting and hosts a media conference.
Any commentary out of renewed US-China trade talks is also keenly anticipated.
In addition, an initial December quarter GDP reading, a private sector January employment report, December pending home sales and weekly mortgage applications are also scheduled for release.
The GDP reading may be pushed back, however, due to a delay in preparing component statistics during the partial government services shut down.
Companies expected to report earnings, or provide a trading update, include: Alibaba, AT&T, Banco Santander, Boeing, Facebook, ING, McDonald’s, Mondelez International, Novartis, Paypal, Qualcomm, Siemens, Tesla and Visa.
In overnight corporate news, Apple Advanced Micro Devices and eBay have reported mixed results and guidance post-US trade, and will influence at least some of tonight’s equities sentiment.
Earlier, Nvidia and General Electric each suffered from negative research reports.
The Australian market commences today’s trade following overnight gains for key commodity prices, ahead of influential domestic data today and new China-US trade talks tonight, and with European negotiators this morning having rejected a UK parliamentary-approved proposal to reconsider UK-EU separation arrangements regarding Ireland’s border.
The proposal has been considered the only way for sufficient UK parliamentarians to consider approving a final EU withdrawal deal.
This comes after the European Central Bank earlier this week conceded disappointment at euro zone economic progress.
In addition, further US-China trade and US-Venezuela leadership-sanctions-military involvement commentary could influence some regional sentiment today.
In largely positive overnight commodities trade, oil swung higher and rallied.
US gold futures (April) settled higher for a third consecutive session.
Iron ore (China port 62% Fe fines) also continued to gain.
LME copper, nickel and aluminium rose decisively.
The $A headed towards US71.50c after trading at ~US71.65c early yesterday evening.
Locally today, December quarter CPI growth is due 11.30am AEDT.
In addition, a barrage of December quarter reports is anticipated through the end of the month.
Overseas Market Commentary
Swinging, choppy trade featured across most major European and US equities markets overnight, as investors tried to assess the state of relations between the US and China, and the US and Venezuela, plus earnings and outlooks from high-profile, large-cap stocks, while awaiting the outcome of UK parliamentary votes regarding the planned UK-European Union (EU) separation.
In the UK post-FTSE trade, the House of Commons approved (318-310) a proposal to prevent the UK separating from the European Union without a withdrawal agreement and framework for the future.
The house also voted against (321-298) a move to enable parliament to push back the planned 29 March separation should parliament not be in favour of any proposed withdrawal deal.
Another, and perhaps the most crucial, proposal was approved (317-301), to enable the PM to seek to negotiate with EU leaders a new arrangement regarding border arrangements with EU member Ireland.
A spokesperson for the European Council was quick to announce that president Donald Tusk was not considering renegotiating, however.
The US, in the meantime, had remained embroiled in Huawei allegations and China’s associated ire, and also imposed oil sanctions against Venezuela, at the same time a security official was noted carrying a message indicating possible US military involvement in the Venezuelan leadership confrontation.
Official US-China trade talks are due to resume in Washington tonight.
Among US data releases, Conference Board’s January consumer confidence index was calculated 6.4 points lower than for December (revised), at 120.2. The reading represented an ~18-month low and undershot forecasts.
A Case-Shiller November house price index rose 4.7% year-on-year, the least in almost four years.
Tonight in the US, the Federal Reserve announces (early tomorrow AEDT) outcomes from its policy meeting and hosts a media conference.
Any commentary out of renewed US-China trade talks is also keenly anticipated.
In addition, an initial December quarter GDP reading, a private sector January employment report, December pending home sales and weekly mortgage applications are also scheduled for release.
The GDP reading may be pushed back, however, due to a delay in preparing component statistics during the partial government services shut down.
Companies expected to report earnings, or provide a trading update, include: Alibaba, AT&T, Banco Santander, Boeing, Facebook, ING, McDonald’s, Mondelez International, Novartis, Paypal, Qualcomm, Siemens, Tesla and Visa.
In overnight corporate news, Apple Advanced Micro Devices and eBay have reported mixed results and guidance post-US trade, and will influence at least some of tonight’s equities sentiment.
Earlier, Nvidia and General Electric each suffered from negative research reports.