Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 01 May 2019
Local Markets Commentary
The Australian market commences mid-week trade, on the first trading day of May, with markets in China, Hong Kong, Japan, Korea and Singapore closed, and mixed overnight international equities and commodities sentiment.
Locally today, AiG’s April manufacturing index is due pre-trade.
CoreLogic is also expected to publish it April residential property price index.
Post-trade, the Reserve Bank of Australia (RBA) releases April commodity prices.
Meanwhile, BOQ trades ex-dividend today. Please see p4 for a detailed list.
In addition, several high-cap stocks have lodged Macquarie conference presentations, most containing trading updates. This will swing select trade.
Regionally today, Japan’s new emperor takes over following the abdication of his father, as planned, yesterday.
In overnight commodities trade, both Brent and WTI crude recorded gains.
US gold futures (June) turned modestly higher.
Iron ore (China port, 62% Fe) rose slightly.
LME copper was supported to another small gain, but nickel and aluminium were pushed decidedly lower.
The $A fell below US70.45c after trading at US70.55c early yesterday evening.
Japan’s markets are scheduled to remain closed for the remainder of the week, and Monday next week, due to a series of public holidays.
China’s markets are closed today for May Day and will also remain closed for the remainder of the week.
Locally today, AiG’s April manufacturing index is due pre-trade.
CoreLogic is also expected to publish it April residential property price index.
Post-trade, the Reserve Bank of Australia (RBA) releases April commodity prices.
Meanwhile, BOQ trades ex-dividend today. Please see p4 for a detailed list.
In addition, several high-cap stocks have lodged Macquarie conference presentations, most containing trading updates. This will swing select trade.
Regionally today, Japan’s new emperor takes over following the abdication of his father, as planned, yesterday.
In overnight commodities trade, both Brent and WTI crude recorded gains.
US gold futures (June) turned modestly higher.
Iron ore (China port, 62% Fe) rose slightly.
LME copper was supported to another small gain, but nickel and aluminium were pushed decidedly lower.
The $A fell below US70.45c after trading at US70.55c early yesterday evening.
Japan’s markets are scheduled to remain closed for the remainder of the week, and Monday next week, due to a series of public holidays.
China’s markets are closed today for May Day and will also remain closed for the remainder of the week.
Overseas Market Commentary
Major European and US equities markets chopped and/or swung in varying degrees overnight.
Investors were provided plenty to consider, including another plethora of high-profile corporate reports, some encouraging data releases, in particular out of the euro zone, and a call for a 1% US rate cut and new stimulus from the US president.
In addition, earlier yesterday, two estimates of China’s April manufacturing sector activity had come in lower for the month, ahead of new high-level trade talks between China and the US in Beijing.
Ahead of these, the US was reported to have made at least one concession, regarding alleged China commercial cyber theft.
Earlier this month, China had maintained it was seeking an end to this practice by other nations.
In Venezeula, the opposition leader called for military and community support to remove the president, eliciting a post-US trade supportive comment from the national security advisor for the US.
Among new data releases, the euro zone’s initial March quarter GDP growth estimate surprised on the upside, rising 0.4% for the three months and 1.2% year-on-year. GDP grew just 0.2% during the December quarter 2018 and 0.1% in the September quarter.
March unemployment was recorded at 7.7%, down 0.1% for the month, and at a 10.5-year low.
Germany’s initial April CPI reading represented 1.0% growth for the month and a 2.0% year-on-year rise.
Inflation had risen just 0.4% during March and 1.3% year-on-year.
March import prices came in flat for the month and 1.7% higher year-on-year. Prices had risen 0.3% during February.
In the US, the Chicago PMI fell to 52.6 from 58.7.
March pending home sales rose 3.8% for the month after falling 1% in February. Year-on-year, pending sales were 1.2% lower.
The Conference Board’s April consumer sentiment index improved by five points to 129.2.
Case-Shiller’s February house price index rose 0.2% for the month following a 0.2% January pullback.
The March quarter employment cost index remained steady at 0.7%.
Tonight in the US, the Federal Reserve concludes a two-day policy meeting, from which outcomes will be announced and following which chair Jerome Powell will host a press conference.
Data releases scheduled for tonight are also influential, including ISM’s April manufacturing index, a private sector employment report and March construction spending. Weekly new mortgage applications and a final April Markit manufacturing PMI are also due tonight.
Large-cap stocks continue to report earnings on both sides of the Atlantic.
Those scheduled to report earnings later today or tonight include: CVS Health, Estee Lauder, GlaxoSmithKline, HCP, Kraft Heinz, UK supermarket chain Sainsbury’s (full year), Qualcomm, Vale and Yum! Brands.
In overnight corporate news, Apple asserted iPhone sales had improved earlier than anticipated and that the company was anticipating June quarter revenue growth beyond market expectations.
The company has reported post-US trade and will influence at least some of tonight’s early sentiment.
Alphabet director and former Google chair and CEO Eric Schmidt announced his resignation from the Alphabet board, effective 19 June. Mr Schmidt said he would continue with Alphabet as a technical adviser.
Alphabet had reported post-Monday US trade with Google advertising growth coming in beneath expectations. The stock fell ~8% overnight.
Meanwhile, General Electric benefited after exceeding quarterly expectations.
McDonald’s figures came in mixed.
Earlier, BP reported 12% lower profit and reduced revenue despite increased production.
Anadarko Petroleum bidder Occidental Petroleum received a promise of a $US10B Berkshire Hathaway purchase of preferred shares, plus a warrant to acquire up to 80M common shares.
Competing Anardarko bidder Chevron subsequently rose ~2%.
Pfizer and Merck each benefited ~2.5% after reporting better-than-anticipated quarterly figures.
NB: UK and US markets will trade tonight, but major mainland European markets are now closed until later tomorrow.
Investors were provided plenty to consider, including another plethora of high-profile corporate reports, some encouraging data releases, in particular out of the euro zone, and a call for a 1% US rate cut and new stimulus from the US president.
In addition, earlier yesterday, two estimates of China’s April manufacturing sector activity had come in lower for the month, ahead of new high-level trade talks between China and the US in Beijing.
Ahead of these, the US was reported to have made at least one concession, regarding alleged China commercial cyber theft.
Earlier this month, China had maintained it was seeking an end to this practice by other nations.
In Venezeula, the opposition leader called for military and community support to remove the president, eliciting a post-US trade supportive comment from the national security advisor for the US.
Among new data releases, the euro zone’s initial March quarter GDP growth estimate surprised on the upside, rising 0.4% for the three months and 1.2% year-on-year. GDP grew just 0.2% during the December quarter 2018 and 0.1% in the September quarter.
March unemployment was recorded at 7.7%, down 0.1% for the month, and at a 10.5-year low.
Germany’s initial April CPI reading represented 1.0% growth for the month and a 2.0% year-on-year rise.
Inflation had risen just 0.4% during March and 1.3% year-on-year.
March import prices came in flat for the month and 1.7% higher year-on-year. Prices had risen 0.3% during February.
In the US, the Chicago PMI fell to 52.6 from 58.7.
March pending home sales rose 3.8% for the month after falling 1% in February. Year-on-year, pending sales were 1.2% lower.
The Conference Board’s April consumer sentiment index improved by five points to 129.2.
Case-Shiller’s February house price index rose 0.2% for the month following a 0.2% January pullback.
The March quarter employment cost index remained steady at 0.7%.
Tonight in the US, the Federal Reserve concludes a two-day policy meeting, from which outcomes will be announced and following which chair Jerome Powell will host a press conference.
Data releases scheduled for tonight are also influential, including ISM’s April manufacturing index, a private sector employment report and March construction spending. Weekly new mortgage applications and a final April Markit manufacturing PMI are also due tonight.
Large-cap stocks continue to report earnings on both sides of the Atlantic.
Those scheduled to report earnings later today or tonight include: CVS Health, Estee Lauder, GlaxoSmithKline, HCP, Kraft Heinz, UK supermarket chain Sainsbury’s (full year), Qualcomm, Vale and Yum! Brands.
In overnight corporate news, Apple asserted iPhone sales had improved earlier than anticipated and that the company was anticipating June quarter revenue growth beyond market expectations.
The company has reported post-US trade and will influence at least some of tonight’s early sentiment.
Alphabet director and former Google chair and CEO Eric Schmidt announced his resignation from the Alphabet board, effective 19 June. Mr Schmidt said he would continue with Alphabet as a technical adviser.
Alphabet had reported post-Monday US trade with Google advertising growth coming in beneath expectations. The stock fell ~8% overnight.
Meanwhile, General Electric benefited after exceeding quarterly expectations.
McDonald’s figures came in mixed.
Earlier, BP reported 12% lower profit and reduced revenue despite increased production.
Anadarko Petroleum bidder Occidental Petroleum received a promise of a $US10B Berkshire Hathaway purchase of preferred shares, plus a warrant to acquire up to 80M common shares.
Competing Anardarko bidder Chevron subsequently rose ~2%.
Pfizer and Merck each benefited ~2.5% after reporting better-than-anticipated quarterly figures.
NB: UK and US markets will trade tonight, but major mainland European markets are now closed until later tomorrow.