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Before making any investment decision, you should consult your adviser.
Market Opener – 25 May 2018
Local Markets Commentary
The Australian market commences Friday trade following a swag of announcements regarding international trade and relations, a couple of central bank warnings and overnight falls across major equities markets, and ahead of a key economic indicator out of Japan.
In addition, US and UK markets are heading into Monday holiday long weekends.
In decidedly mixed overnight commodities trade, US gold futures rallied.
Both Brent and WTI crude fell.
Iron ore (China port, 62% Fe) swung sharply higher.
LME copper turned to settle slightly higher. Nickel gained decisively.
The $A was pushed to ~US75.80c after trading at US75.60c early yesterday evening.
Regionally today, Japan is scheduled to release a CPI update 9.30am AEST.
China’s April industrial profits are expected over the weekend.
Locally today, two new listings – one in the finance sector and the other in manufacturing – are likely to attract attention.
Overseas Market Commentary
Major European and US equities markets respectively swung in second and first-half overnight trade.
The $US fell, oil was pushed lower and gold rallied as investors considered potential outcomes from a bevy of announcements and warnings, plus mixed data, selling out of stocks viewed as vulnerable and pushing up those seen to secure advantage.
US president Donald Trump confirmed a national security-based investigation was underway into vehicle imports, ahead of potential new tariffs.
Mr Trump also cancelled his planned 12 June meeting with North Korean leader Kim Jong-Un, citing North Korea’s verbal attacks this week.
Earlier, the US president had withdrawn an invitation for China to join the US in naval exercises, citing China’ growing military presence across the South China Sea.
In the UK, Bank of England governor Mark Carney advocated strongly for ordered negotiations as the UK sought to separate from the European Union.
European Central Bank (ECB) policy meeting minutes revealed expectations the region’s economy could slow further in the face of broadening uncertainty, but also a view that growth alarm was not warranted.
The ECB’s financial stability review revealed concern at any moves to dismantle the European Union at a time when some economic indicators have weakened.
In data releases, Germany’s final March quarter GDP growth readings were confirmed at 0.3% for the quarter and 2.3% year-on-year, each seasonally adjusted. Unadjusted, annual growth came in at 1.6%.
UK April retail sales pleased, improving 1.4% after a 1.1% rise in March and forecasts of a 0.1% new increase.
Among US economic indicators, weekly new unemployment claims rose by 11,000.
April existing home sales dropped 2.5%, following expectations of a 0.2% slip on top of a 1.4% fall in March.
Tonight in the US, durable goods orders and the University of Michigan’s final May consumer sentiment reading are due.
Elsewhere, US Federal Reserve chair Jerome Powell and Bank of England governor are each scheduled to address a conference hosted by Sweden’s reserve bank.
In overnight corporate news, Deutsche Bank announced ~7000 jobs would go, in support of profitability.
The CEO and seven directors of aluminium producer Rusal resigned with a warning the company would struggle to repay debt.
US retailer Best Buy exceeded quarterly report expectations but was pushed ~6.5% lower.
Celgene recouped more than 2% after boosting buy-back plans by $US3B.
Netflix rose more than 1%, notably helping push its market cap beyond that of Walt Disney.
US and UK equities markets will be closed Monday due to public holidays.
The London Metals Exchange (LME) will also be closed Monday.Commodities will trade in the US until 1pm ET.
The Australian market commences Friday trade following a swag of announcements regarding international trade and relations, a couple of central bank warnings and overnight falls across major equities markets, and ahead of a key economic indicator out of Japan.
In addition, US and UK markets are heading into Monday holiday long weekends.
In decidedly mixed overnight commodities trade, US gold futures rallied.
Both Brent and WTI crude fell.
Iron ore (China port, 62% Fe) swung sharply higher.
LME copper turned to settle slightly higher. Nickel gained decisively.
The $A was pushed to ~US75.80c after trading at US75.60c early yesterday evening.
Regionally today, Japan is scheduled to release a CPI update 9.30am AEST.
China’s April industrial profits are expected over the weekend.
Locally today, two new listings – one in the finance sector and the other in manufacturing – are likely to attract attention.
Overseas Market Commentary
Major European and US equities markets respectively swung in second and first-half overnight trade.
The $US fell, oil was pushed lower and gold rallied as investors considered potential outcomes from a bevy of announcements and warnings, plus mixed data, selling out of stocks viewed as vulnerable and pushing up those seen to secure advantage.
US president Donald Trump confirmed a national security-based investigation was underway into vehicle imports, ahead of potential new tariffs.
Mr Trump also cancelled his planned 12 June meeting with North Korean leader Kim Jong-Un, citing North Korea’s verbal attacks this week.
Earlier, the US president had withdrawn an invitation for China to join the US in naval exercises, citing China’ growing military presence across the South China Sea.
In the UK, Bank of England governor Mark Carney advocated strongly for ordered negotiations as the UK sought to separate from the European Union.
European Central Bank (ECB) policy meeting minutes revealed expectations the region’s economy could slow further in the face of broadening uncertainty, but also a view that growth alarm was not warranted.
The ECB’s financial stability review revealed concern at any moves to dismantle the European Union at a time when some economic indicators have weakened.
In data releases, Germany’s final March quarter GDP growth readings were confirmed at 0.3% for the quarter and 2.3% year-on-year, each seasonally adjusted. Unadjusted, annual growth came in at 1.6%.
UK April retail sales pleased, improving 1.4% after a 1.1% rise in March and forecasts of a 0.1% new increase.
Among US economic indicators, weekly new unemployment claims rose by 11,000.
April existing home sales dropped 2.5%, following expectations of a 0.2% slip on top of a 1.4% fall in March.
Tonight in the US, durable goods orders and the University of Michigan’s final May consumer sentiment reading are due.
Elsewhere, US Federal Reserve chair Jerome Powell and Bank of England governor are each scheduled to address a conference hosted by Sweden’s reserve bank.
In overnight corporate news, Deutsche Bank announced ~7000 jobs would go, in support of profitability.
The CEO and seven directors of aluminium producer Rusal resigned with a warning the company would struggle to repay debt.
US retailer Best Buy exceeded quarterly report expectations but was pushed ~6.5% lower.
Celgene recouped more than 2% after boosting buy-back plans by $US3B.
Netflix rose more than 1%, notably helping push its market cap beyond that of Walt Disney.
US and UK equities markets will be closed Monday due to public holidays.
The London Metals Exchange (LME) will also be closed Monday.Commodities will trade in the US until 1pm ET.