Research

Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.

Market Opener – 12 Jul 2018

 
Local Markets Commentary
The Australian market commences today’s trade on negative overnight international equities and major commodities leads, ahead of influential data out of China. 

In commodities trade, oil dived. 

US gold futures dropped.

Iron ore (China port, 62% Fe) fell.

LME copper slid, nickel, aluminium and other base metals also recording significant declines. 

The $A continued lower, to ~US73.60c after trading below US73.95c early yesterday evening.

Locally today, the Melbourne Institute publishes a monthly inflation expectations report. 

Regionally, China’s June foreign direct investment tally is expected midday AEST.

Lending figures are potentially scheduled for release post-ASX trade.

Any outcomes statement from a NATO leaders’ summit concluding in Brussels later today is expected to be void of overall firm agreement on immigration, defence and trade matters.

Overseas Market Commentary
Major European and US equities markets fell on open overnight, with the barest of risk sentiment able to prevail throughout ensuing trade.

Earlier, the US revealed a list of $US200B worth of imports from China for which it planned to boost tariffs later next month.

China indicated it would keep retaliating, labelling the US a ‘bully’.

Meanwhile, at the commencement of a two-day NATO leaders’ summit in Brussels the US president bluntly accused allies of unfair practice.

Among US data releases, June producer prices rose 0.3% for the month and 3.4% year-on-year, following 0.5% and 3.1% gains for May and against forecasts of a more modest 0.2% June rise.

The annual increase represented the most in 6.5 years, helping push the $US higher, in part on bolstered expectations of an additional two US rate rises before year’s end. 

May wholesale inventories were revised to a 0.6% increase from the initial 0.5% estimate. Stocks rose 5.9% year-on-year.

A €3B 10-year sovereign bond auction in Germany was achieved on (-0.02 – 0.03) reduced yields.

Meanwhile, the Bank of Canada lifted the overnight cash rate by 0.25% to 1.50%.

Tonight in the US, June CPI and the national monthly budget statement are anticipated.

Weekly new unemployment claims are also due. 

Elsewhere, NATO leaders will conclude their latest round of meetings, but a universally agreed outcomes statement looked unlikely overnight.

Companies scheduled to report earnings or provide trading updates include ASOS and Delta Air Lines 

In overnight corporate news, investment group Tiger Global revealed it had acquired a $US1B holding in Japan’s SoftBank.

As anticipated, Twenty-First Century Fox agreed new terms in a revised £24.5B offer for Sky Plc, and subsequently fell ~4%. 

Apple fell ~1.5% on allegations it had applied pressure to ensure discounts in Japan and hence increased sales.

Netflix gained ~0.7% on an analysts’ assessment of a positive subscriber outlook.
 
12/07/2018 9:00:00 AM

Back to top