Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 06 Nov 2018
Local Markets Commentary
The Australian market opens today’s trade on Melbourne Cup day, with the Reserve Bank of Australia holding a policy meeting and announcing outcomes this afternoon.
International geopolitical commentary is expected to continue through today’s trade, ahead of the US mid-term elections tonight, and with China hosting a major trade expo.
Overnight wavering international trade produced mixed settlements across equities and commodities markets.
In overnight commodities trade, WTI crude settled lower again but by a few cents only, whereas Brent ultimately swung moderately higher.
US (December) gold futures recorded a further, but slight, slip.
Iron ore (China port, 62% Fe) swung higher and rallied. BHP announced it had suspended WA Pilbara iron ore rail movements following an incident which forced the major international exporter to deliberately derail a train.
LME copper and nickel turned and fell. Aluminium pulled back slightly.
The $A was pushed to US72.10c after trading at US72.05c early yesterday evening.
The Reserve Bank of Australia’s (RBA) policy meeting outcomes statement will be published 2.30pm AEDT.
Locally today also, a weekly consumer sentiment reading is due pre-trade.
Singapore’s markets are closed today, due to a public holiday.
Overseas Market Commentary
Major European and US equities markets opened higher and mostly ultimately added to gains, despite vacillating trade.
The NASDAQ and Germany’s DAX proved exceptions, however.
Apple and Amazon each suffered from third-party announcements, and the $US was pushed lower, ahead of tonight’s mid-term elections.
Among other investor considerations, US Secretary of State Mike Pompeo asserted US sanctions against Iran had reduced that nation’s oil revenue by $US2.5B since May, and Iran proclaimed US moves, including sanctions imposed earlier this year, amounted to ‘economic war’.
Yesterday, China’s president Xi Jinping promised further import tax reductions, claiming his nation opposed protectionism.
European Central Bank (ECB) vice president Luis de Guindos noted that the late-Friday release of bank stress tests indicated banks responsible for 40% of euro zone banking sector assets could need to lift capital.
This prompted speculation the ECB could raise the minimum required CET1 from the 5.5% test cut-off.
In overnight data releases, the ISM’s US October services sector activity index fell 2.7 points to 62.5, still considered strong, and influential.
Markit’s final October services PMI rose 1.3 to 54.8.
In the euro zone, Sentix’s November investor confidence index was reported 2.6 points lower, at 8.8.
Across the channel, the UK October services PMI fell 1.7 to 52.2.
In addition to mid-term elections tonight, US job opportunities and economic optimism reports are due.
Companies scheduled to reveal earnings or provide updates later today or tonight include: Archer-Daniels-Midland, Associated British Foods, CVS Health, Eli Lilly, Emerson Electric, Hugo Boss, Imperial Brands, Kirin Holdings, Mitsubishi Motors, Morrisons, Ralph Lauren, Regeneron, Sky Plc and Toyota Motor.
The Australian market opens today’s trade on Melbourne Cup day, with the Reserve Bank of Australia holding a policy meeting and announcing outcomes this afternoon.
International geopolitical commentary is expected to continue through today’s trade, ahead of the US mid-term elections tonight, and with China hosting a major trade expo.
Overnight wavering international trade produced mixed settlements across equities and commodities markets.
In overnight commodities trade, WTI crude settled lower again but by a few cents only, whereas Brent ultimately swung moderately higher.
US (December) gold futures recorded a further, but slight, slip.
Iron ore (China port, 62% Fe) swung higher and rallied. BHP announced it had suspended WA Pilbara iron ore rail movements following an incident which forced the major international exporter to deliberately derail a train.
LME copper and nickel turned and fell. Aluminium pulled back slightly.
The $A was pushed to US72.10c after trading at US72.05c early yesterday evening.
The Reserve Bank of Australia’s (RBA) policy meeting outcomes statement will be published 2.30pm AEDT.
Locally today also, a weekly consumer sentiment reading is due pre-trade.
Singapore’s markets are closed today, due to a public holiday.
Overseas Market Commentary
Major European and US equities markets opened higher and mostly ultimately added to gains, despite vacillating trade.
The NASDAQ and Germany’s DAX proved exceptions, however.
Apple and Amazon each suffered from third-party announcements, and the $US was pushed lower, ahead of tonight’s mid-term elections.
Among other investor considerations, US Secretary of State Mike Pompeo asserted US sanctions against Iran had reduced that nation’s oil revenue by $US2.5B since May, and Iran proclaimed US moves, including sanctions imposed earlier this year, amounted to ‘economic war’.
Yesterday, China’s president Xi Jinping promised further import tax reductions, claiming his nation opposed protectionism.
European Central Bank (ECB) vice president Luis de Guindos noted that the late-Friday release of bank stress tests indicated banks responsible for 40% of euro zone banking sector assets could need to lift capital.
This prompted speculation the ECB could raise the minimum required CET1 from the 5.5% test cut-off.
In overnight data releases, the ISM’s US October services sector activity index fell 2.7 points to 62.5, still considered strong, and influential.
Markit’s final October services PMI rose 1.3 to 54.8.
In the euro zone, Sentix’s November investor confidence index was reported 2.6 points lower, at 8.8.
Across the channel, the UK October services PMI fell 1.7 to 52.2.
In addition to mid-term elections tonight, US job opportunities and economic optimism reports are due.
Companies scheduled to reveal earnings or provide updates later today or tonight include: Archer-Daniels-Midland, Associated British Foods, CVS Health, Eli Lilly, Emerson Electric, Hugo Boss, Imperial Brands, Kirin Holdings, Mitsubishi Motors, Morrisons, Ralph Lauren, Regeneron, Sky Plc and Toyota Motor.