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Market Opener – 10 Sep 2018
Local Markets Commentary
The Australian market commences a new week’s trade with influential data out of China over the weekend, ahead of further key regional data today.
In addition, an official China response to new US trade threats is also anticipated anytime from today.
Saturday, China reported a $US27.91B August trade surplus, against $US28.05B in July.
Imports had grown 20% year-on-year, following a 27.3% rise in July, while exports had risen just 9.8%, following a 12.2% increase for July.
Post-ASX trade Friday, China reported forex reserves at $US3.11 trillion, against $US3.118 trillion as at 31 July.
China’s August CPI and PPI are expected 11.30am AEST.
Japan’s final June quarter GDP reading is due 9.50am.
Locally today, a weekly capital city residential property price report is due pre-trade.
In addition, several large-cap stocks trade ex-dividend today. Please see p3 for details.
In overnight Friday commodities trade, WTI crude settled slightly lower and Brent modestly higher.
US gold futures turned lower.
Iron ore (China port, 62% Fe) gained further, but slightly.
LME copper settled little changed. Nickel turned lower again. Aluminium seesawed higher.
The $A fell below US71.10c after trading at US71.55c early Friday evening.
In domestic political news, Australia’s national parliament resumes sittings following last month’s leadership spill.
Overseas Market Commentary
Major European and US equities markets again demonstrated vacillating sentiment overnight Friday, even before a trade warning from the US president produced a notable chill across US indices.
The US administration threatened to impose new import taxes on an additional $US267B worth of goods from China, as speculation continued a previously planned increase on tariffs for $US200B worth of goods could be implemented in the near-term.
This appeared the main negative influence on tech sector sentiment, select stocks falling again.
Economic indicators proved mixed.
For the US, the monthly employment report pushed the $US higher.
The estimated number of jobs created in August (210,000) exceeded expectations (190,000).
Average earnings rose 0.4% for the month, following 0.3% in July, and came in 2.9% higher, year-on-year, representing the best annual boost in nine years.
The number of jobs created in July was revised from 157,000 to 147,000.
In the euro zone, a final June quarter GDP reading remained at 0.4% growth for the quarter, but 2.1% year-on-year, against 2.4%.
In Germany, July exports were estimated to have fallen 0.9% against a 2.8% rise in imports, shrinking the trade surplus from €19.3B to €15.8B.
Industrial production dropped 1.1% for the month, following a 0.7% decline in June.
Tonight in the US, July consumer credit figures are due.
Associated British Foods and Taiwan Semiconductor are due to report.
In overnight Friday corporate news, Tesla stock suffered further, falling ~6%, in part due to revelations the chief accounting officer was leaving after four weeks with the company. Some analysts cited CEO and chairman Elon Musk as the major influence on Friday’s price, following a podcast which showed ‘concerning’ behaviour.
In the meantime, China’s HNA Group was reported to be selling its 7.6% holding in Deutsche Bank, prompting a 1.5% Deutsche Bank push lower.
Toyota Motor announced the recent earthquake in northern Japan had impacted a parts manufacturing plant and that the company was suspending operations at several assembly facilities in Japan.
The Australian market commences a new week’s trade with influential data out of China over the weekend, ahead of further key regional data today.
In addition, an official China response to new US trade threats is also anticipated anytime from today.
Saturday, China reported a $US27.91B August trade surplus, against $US28.05B in July.
Imports had grown 20% year-on-year, following a 27.3% rise in July, while exports had risen just 9.8%, following a 12.2% increase for July.
Post-ASX trade Friday, China reported forex reserves at $US3.11 trillion, against $US3.118 trillion as at 31 July.
China’s August CPI and PPI are expected 11.30am AEST.
Japan’s final June quarter GDP reading is due 9.50am.
Locally today, a weekly capital city residential property price report is due pre-trade.
In addition, several large-cap stocks trade ex-dividend today. Please see p3 for details.
In overnight Friday commodities trade, WTI crude settled slightly lower and Brent modestly higher.
US gold futures turned lower.
Iron ore (China port, 62% Fe) gained further, but slightly.
LME copper settled little changed. Nickel turned lower again. Aluminium seesawed higher.
The $A fell below US71.10c after trading at US71.55c early Friday evening.
In domestic political news, Australia’s national parliament resumes sittings following last month’s leadership spill.
Overseas Market Commentary
Major European and US equities markets again demonstrated vacillating sentiment overnight Friday, even before a trade warning from the US president produced a notable chill across US indices.
The US administration threatened to impose new import taxes on an additional $US267B worth of goods from China, as speculation continued a previously planned increase on tariffs for $US200B worth of goods could be implemented in the near-term.
This appeared the main negative influence on tech sector sentiment, select stocks falling again.
Economic indicators proved mixed.
For the US, the monthly employment report pushed the $US higher.
The estimated number of jobs created in August (210,000) exceeded expectations (190,000).
Average earnings rose 0.4% for the month, following 0.3% in July, and came in 2.9% higher, year-on-year, representing the best annual boost in nine years.
The number of jobs created in July was revised from 157,000 to 147,000.
In the euro zone, a final June quarter GDP reading remained at 0.4% growth for the quarter, but 2.1% year-on-year, against 2.4%.
In Germany, July exports were estimated to have fallen 0.9% against a 2.8% rise in imports, shrinking the trade surplus from €19.3B to €15.8B.
Industrial production dropped 1.1% for the month, following a 0.7% decline in June.
Tonight in the US, July consumer credit figures are due.
Associated British Foods and Taiwan Semiconductor are due to report.
In overnight Friday corporate news, Tesla stock suffered further, falling ~6%, in part due to revelations the chief accounting officer was leaving after four weeks with the company. Some analysts cited CEO and chairman Elon Musk as the major influence on Friday’s price, following a podcast which showed ‘concerning’ behaviour.
In the meantime, China’s HNA Group was reported to be selling its 7.6% holding in Deutsche Bank, prompting a 1.5% Deutsche Bank push lower.
Toyota Motor announced the recent earthquake in northern Japan had impacted a parts manufacturing plant and that the company was suspending operations at several assembly facilities in Japan.