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Market Opener – 21 Sep 2018

 
Local Markets Commentary
The Australian market commences Friday trade following positive overnight US equities and mixed key commodities trade. 

In overnight commodities trade, oil turned lower. 

US (December) gold futures again settled modestly higher.

Iron ore (62% Fe, China port) extended Wednesday’s pull back.

LME copper was pushed lower, nickel further extended gains, and aluminium swung higher. 

The $A appreciated to ~US72.90c after trading at ~US72.70c early yesterday evening.

Regionally today, Japan reports August CPI 9.30am AEST.

An initial September manufacturing PMI is due for Japan 10.30am.

The leaders of South Korea and North Korea conclude meetings in North Korea.

Markets in Japan and China will be closed Monday due to public holidays.

Overseas Market Commentary
US equities markets rallied on opening overnight, holding and slightly improving on gains through to settlement, helping to drag major European equities indices higher.

The S&P 500 and DJIA notably achieved new record settlements amid $US weakness and some speculation regarding relatively soft future economic growth commentary following next week’s US Federal Reserve policy meeting. 

In decidedly mixed overnight data releases, the UK’s August retail sales were reported 0.3% higher for the month, following expectations of a 0.2% slip following World Cup and warmer-than-usual summer weather which had supported July sales. The result pushed the British pound higher against the $US.

A euro zone consumer confidence index was reported at a 15-month low, falling another point to -2.9.

US weekly new unemployment claims fell by 3000, against expectations of an ~6000 rise.

August existing home sales came in essentially flat on an annual basis.

The Philadelphia Fed manufacturing index surprised forecasters, gaining 11 points to recoup 22.9.

Tonight in the US, Markit’s preliminary September PMIs are due. 

Elsewhere, the Bank of England (BoE) publishes a quarterly bulletin.

Interest will be keen, given the willingness of various officials to espouse views of both economic outlooks under differing UK - European Union separation scenarios and likely policy necessities.

Companies scheduled to report earnings or provide an update include Quantum Corp and Smiths Group.

A major change to the S&P Dow Jones Indices’ Global Industry Classification Standard (GICS), in particular technology, media and consumer classifications on Monday’s US open. 

The changes include moving the commonly-termed FANG stocks from the IT sector into a newly formed communications services grouping, which will also include large media stocks currently residing in the consumer discretionary sector.

Apple will remain within the S&P technology index with a 20% weighting against the current 16%.
 
21/09/2018 8:00:00 AM

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