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State One Market Opener - 09 Aug 2016

Local Markets Commentary
The Australian market opens on mostly lacklustre international equities leads but some positive overnight commodities trade.

Regionally today, China is expected to publish July CPI figures 11.30am AEST.

In overnight trade, gold futures continued a little lower, but oil swung decisively higher. Copper also turned and settled higher. Iron ore extended Friday’s gains.

The $A rose to ~~US76.50c, after trading at ~US76.30c early yesterday evening.

Locally today, a weekly consumer sentiment reading is due pre-trade. NAB publishes its monthly business survey report 11.30am AEST.

Overseas Market Commentary
Major European equities markets traded higher from the start overnight. Key US indices fell in early trade and struggled to recover on relatively light volume trade.

Oil turned higher and rallied, supporting the energy sector but US healthcare and biotech stocks suffered.

In Germany, June industrial output rallied 0.8% following a 1.3% drop in May.

The euro zone Sentix August economic sentiment index came in at 4.2 representing a 3.5 gain for the month.

Switzerland remained in deflation mode in July, CPI declining 0.2% year-on-year, but the magnitude of June’s fall had been 0.4% and a further 0.3% pull back had been forecast for July.

Tonight in the US, June wholesale inventories, a small business optimism report, a June quarter productivity update and economic optimism index are due.

India’s central bank is due to release a post-policy meeting statement.

Companies scheduled to report earnings include: Valeant Pharmaceuticals, Walt Disney, Bridgestone, Mitsui Mining & Smelting and Daikin.

Overnight, Allergan cut full-year revenue guidance after quarterly revenue undershot forecasts. Following disappointing drug study news from Bristol-Myers Friday, and a subsequent rating downgrade, this appeared sufficient to bruise general healthcare and biotech sentiment.

Walmart revealed a proposed ~$US3B outlay for online retailer

Netflix dropped when Alibaba denied reports of a possible deal.

News Corporation reported post-US trade. This included a June quarter swing to profit from a year ago, but falls for full-year EBITDA and revenue.

9/08/2016 7:48:36 AM

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