Research

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State One Market Opener - 18 Oct 2016

 
Local Markets Commentary

The Australian market commences today’s trade on negative international equities leads, but with plenty of Reserve Bank of Australia (RBA) comment to consider.

In overnight commodities trade, oil fell. US gold futures settled slightly higher. LME copper settled unchanged. Iron ore rallied.

The $A traded higher to ~US76.25c after climbing back above ~US76.0c yesterday evening.

Locally this morning, RBA governor Philip Lowe has told a Sydney investment conference that next week’s September quarter CPI figures would be carefully examined.

The RBA’s October policy meeting minutes are due 11.30am AEDST today.

September motor vehicle sales are also due today, and pre-trade, a weekly consumer sentiment reading.

Tomorrow, China is due to release September quarter CPI. September industrial production, retail sales and fixed assets investment are also anticipated.

Overseas Market Commentary

Major European and US equities markets traded lower overnight, risk appetite appearing in short supply.

Falling oil prices impacted the energy sector. US data and corporate reporting season also swung some sentiment.

US September industrial production was reported just 0.1% higher, following a 0.5% decline for August. For the September quarter year-on-year however, industrial output rose 1.8%.

A New York region manufacturing index dropped to -6.8 from -2, against forecasts of a gain to +2.

In the meantime, Federal Reserve vice chair Stanley Fischer warned of rates staying too low, but noted any case for a move was not simple.

In the euro zone, a final September CPI growth reading came in as anticipated, at 0.4% year-on-year.

Tonight in the US, September CPI and a home builders’ sentiment index are due.

BlackRock, Domino’s Pizza, Goldman Sachs, Intel, Johnson & Johnson, United Health and Yahoo are among companies due to report.

Overnight, Bank of America quarterly profit and revenue surpassed expectations, the bank citing support from bond trade and cost-cutting benefits. The bank’s stock price ended the session lower, however.

Toy manufacturer Hasbro also reported on the upper side of forecasts and appreciated more than 7.5%.

Across the Atlantic, the UK government was reported to be preparing to write down its Royal Bank of Scotland holding.

 
18/10/2016 6:48:45 AM

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