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Before making any investment decision, you should consult your adviser.
Market Opener – 19 Jul 2018
Local Markets Commentary
The Australian market opens today’s trade on mixed overnight international leads, ahead of key domestic and regional data, and amid a batch of domestic operational and earnings reports.
In overnight commodities trade, oil settled higher.
US gold futures closed little changed.
Iron ore (China port, 62% Fe) continued its snakes and ladders pattern, turning higher.
LME copper effectively trod water while nickel gained.
The $A appreciated past US73.90c after falling to ~US73.45c early yesterday evening.
Locally today, the Australian Bureau of Statistics (ABS) reports June employment statistics, 11.30am AEST.
NAB also publishes its June quarter business conditions, outlook and sentiment report today.
The Reserve Bank of Australia releases reserve assets and foreign exchange transactions.
Regionally, Japan reports June trade figures just prior to ASX-open.
Overseas Market Commentary
Major European and US equities markets demonstrated overnight that equities generally remained in favour during the current reporting season, the S&P 500 achieving a five-month peak.
In addition, general US economic growth appeared to support sentiment.
In the US Federal Reserve’s ‘beige book’ region-by-region economic report, economic growth for 11 of the 12 regions was described as at least modest.
Themes across the Fed’s ‘beige book’ region-by-region economic report indicated some curbs on expansion, however. These included skilled worker shortages, rising input costs, and uncertainty surrounding export and import activity.
Meanwhile, Federal Reserve chair Jerome Powell told a parliamentary financial services committee that the economy was generally supported in the longer term by open trade policies.
In other economic indicator releases, US June housing starts dropped 12.3% to their least in nine months. Building permits fell 2.2%.
Earlier, the euro zone’s final June CPI reading was confirmed at 2.0% growth year-on-year.
For the month, CPI rose just 0.1% following 0.5% in May.
The UK’s June CPI growth came in at 2.4% on an annual basis, the same as for the March quarter, following forecasts of another pickup to 2.6%.
This reduced expectations of a rate rise as early as August and pushed the British pound yet lower against the $US.
Tonight in the US, weekly new unemployment claims, a regional manufacturing index and the Conference Board’s leading index are due.
Companies due to report earnings or provide an update include Anglo American, Bank of NY Mellon, Domino’s Pizza, E*Trade, Microsoft, Philip Morris, SAP, Sports Direct, Taiwan Semiconductor and Unilever.
In overnight corporate news, (Alphabet’s) Google received a €4.3B penalty from the European Union regulators following an investigation into alleged mobile phone Android operating system market abuse.
Morgan Stanley revealed 33% higher, $US2.4B quarterly net income, bolstered by investment banking activity.
Amazon traded briefly at a market cap of $US900B, and Berkshire Hathaway appreciated 5% after easing share buyback restrictions.
Positive reports from CSX and United Continental post-Tuesday US trade, also supported last night’s S&P 500 rise.
European trade benefited from results from Sweden’s Ericsson and the Netherlands’ semiconductor major ASML, each stock pushed ~8% higher.
Alcoa and eBay reported post-US trade, but appeared to disappoint.
The Australian market opens today’s trade on mixed overnight international leads, ahead of key domestic and regional data, and amid a batch of domestic operational and earnings reports.
In overnight commodities trade, oil settled higher.
US gold futures closed little changed.
Iron ore (China port, 62% Fe) continued its snakes and ladders pattern, turning higher.
LME copper effectively trod water while nickel gained.
The $A appreciated past US73.90c after falling to ~US73.45c early yesterday evening.
Locally today, the Australian Bureau of Statistics (ABS) reports June employment statistics, 11.30am AEST.
NAB also publishes its June quarter business conditions, outlook and sentiment report today.
The Reserve Bank of Australia releases reserve assets and foreign exchange transactions.
Regionally, Japan reports June trade figures just prior to ASX-open.
Overseas Market Commentary
Major European and US equities markets demonstrated overnight that equities generally remained in favour during the current reporting season, the S&P 500 achieving a five-month peak.
In addition, general US economic growth appeared to support sentiment.
In the US Federal Reserve’s ‘beige book’ region-by-region economic report, economic growth for 11 of the 12 regions was described as at least modest.
Themes across the Fed’s ‘beige book’ region-by-region economic report indicated some curbs on expansion, however. These included skilled worker shortages, rising input costs, and uncertainty surrounding export and import activity.
Meanwhile, Federal Reserve chair Jerome Powell told a parliamentary financial services committee that the economy was generally supported in the longer term by open trade policies.
In other economic indicator releases, US June housing starts dropped 12.3% to their least in nine months. Building permits fell 2.2%.
Earlier, the euro zone’s final June CPI reading was confirmed at 2.0% growth year-on-year.
For the month, CPI rose just 0.1% following 0.5% in May.
The UK’s June CPI growth came in at 2.4% on an annual basis, the same as for the March quarter, following forecasts of another pickup to 2.6%.
This reduced expectations of a rate rise as early as August and pushed the British pound yet lower against the $US.
Tonight in the US, weekly new unemployment claims, a regional manufacturing index and the Conference Board’s leading index are due.
Companies due to report earnings or provide an update include Anglo American, Bank of NY Mellon, Domino’s Pizza, E*Trade, Microsoft, Philip Morris, SAP, Sports Direct, Taiwan Semiconductor and Unilever.
In overnight corporate news, (Alphabet’s) Google received a €4.3B penalty from the European Union regulators following an investigation into alleged mobile phone Android operating system market abuse.
Morgan Stanley revealed 33% higher, $US2.4B quarterly net income, bolstered by investment banking activity.
Amazon traded briefly at a market cap of $US900B, and Berkshire Hathaway appreciated 5% after easing share buyback restrictions.
Positive reports from CSX and United Continental post-Tuesday US trade, also supported last night’s S&P 500 rise.
European trade benefited from results from Sweden’s Ericsson and the Netherlands’ semiconductor major ASML, each stock pushed ~8% higher.
Alcoa and eBay reported post-US trade, but appeared to disappoint.