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Market Opener – 20 Jul 2018
Local Markets Commentary
The Australian market commences Friday trade on minimal overnight trade support, with a dearth of influential economic indicators due today and tonight, but with a pre-trade CPI update from Japan.
In overnight commodities trade, Brent crude pulled back, but WTI continued higher.
US gold futures settled lower again.
Iron ore (China port, 62% Fe) rose by US1c.
LME copper and other key base metals fell.
The $A retook US73.55c after falling below US73.50c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets headed lower on opening overnight, the FTSE 100 the only major index to chop its way to a positive close as the British pound traded at its least against the $US in 10 months.
For his part, US president Donald Trump seemingly pushed the $US lower during US trade by bemoaning US interest rate rises and associated $US strength.
In the meantime, US bond yields were at 11-year lows, also impacting financial sector sentiment, and a proposed change to foreign investment legislation was introduced in the US Senate.
Earlier, China called out a US official for blaming president Xi Xinping for the US and China failing to resolve trade issues.
Meanwhile, the yuan traded at 12-month lows against the $US.
US international trade push ’n shove continued with the US president reacting to European Union regulators imposing a €4.3B penalty on Google and appearing to threaten retaliation.
New US data releases bolstered early $US strength, weekly new unemployment claims falling by more than anticipated, to an almost five-decade low.
The Philadelphia Fed manufacturing index strengthened 5.8 points to 25.7, after dropping to an ~1.5-year low in June.
In the UK, June retail sales disappointed, falling 0.5% for the month following a 1.4% improvement in May and forecasts of a further 0.2% rise. Year-on-year, sales came in 2.9% higher, against 4.1% for May.
The British pound subsequently traded sub-$US1.30.
Tonight in the US, no major economic indicators are due.
Companies due to report earnings tonight include Baker Hughes, General Electric, Honeywell and Schlumberger.
In overnight corporate news, Comcast announced it would discontinue its competing bid (against Walt Disney) for the entertainment assets of Twenty-First Century Fox, and instead concentrate on acquiring 61% of 21st Century Fox’s 39%-held Sky Plc.
eBay reported post-US Wednesday trade, and dropped 10% overnight on a softer-than-anticipated earnings outlook.
Microsoft has reported this morning, post-US trade. Its earnings have surpassed forecasts, so the stock is expected to appreciate tonight.
The Australian market commences Friday trade on minimal overnight trade support, with a dearth of influential economic indicators due today and tonight, but with a pre-trade CPI update from Japan.
In overnight commodities trade, Brent crude pulled back, but WTI continued higher.
US gold futures settled lower again.
Iron ore (China port, 62% Fe) rose by US1c.
LME copper and other key base metals fell.
The $A retook US73.55c after falling below US73.50c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets headed lower on opening overnight, the FTSE 100 the only major index to chop its way to a positive close as the British pound traded at its least against the $US in 10 months.
For his part, US president Donald Trump seemingly pushed the $US lower during US trade by bemoaning US interest rate rises and associated $US strength.
In the meantime, US bond yields were at 11-year lows, also impacting financial sector sentiment, and a proposed change to foreign investment legislation was introduced in the US Senate.
Earlier, China called out a US official for blaming president Xi Xinping for the US and China failing to resolve trade issues.
Meanwhile, the yuan traded at 12-month lows against the $US.
US international trade push ’n shove continued with the US president reacting to European Union regulators imposing a €4.3B penalty on Google and appearing to threaten retaliation.
New US data releases bolstered early $US strength, weekly new unemployment claims falling by more than anticipated, to an almost five-decade low.
The Philadelphia Fed manufacturing index strengthened 5.8 points to 25.7, after dropping to an ~1.5-year low in June.
In the UK, June retail sales disappointed, falling 0.5% for the month following a 1.4% improvement in May and forecasts of a further 0.2% rise. Year-on-year, sales came in 2.9% higher, against 4.1% for May.
The British pound subsequently traded sub-$US1.30.
Tonight in the US, no major economic indicators are due.
Companies due to report earnings tonight include Baker Hughes, General Electric, Honeywell and Schlumberger.
In overnight corporate news, Comcast announced it would discontinue its competing bid (against Walt Disney) for the entertainment assets of Twenty-First Century Fox, and instead concentrate on acquiring 61% of 21st Century Fox’s 39%-held Sky Plc.
eBay reported post-US Wednesday trade, and dropped 10% overnight on a softer-than-anticipated earnings outlook.
Microsoft has reported this morning, post-US trade. Its earnings have surpassed forecasts, so the stock is expected to appreciate tonight.