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Market Opener – 09 Mar 2018
Local Markets Commentary
The Australian market commences Friday trade for a second consecutive session on negative key commodities leads, ahead of much-anticipated regional reports, and following confirmation of US aluminium and steel import tariffs.
The US president has ordered the new 25% steel and 10% aluminium trade taxes to be implemented within 15 days, but said he was open to negotiation on both magnitude and exemptions in the meantime.
Regionally today, China is scheduled to release February CPI and producer prices 12.30pm AEDST.
The Bank of Japan is due to announce outcomes from its policy meeting 2pm AEDST.
Select ASX trade is also likely to be influenced today by this morning’s release of the S&P/ASX March quarter indices rebalance.
Meanwhile, natural events are testing closer regional nerves.
Earlier this morning, a large earthquake hit PNG’s New Britain, east of Rabaul.
In addition, a major South Pacific tropical cyclone between New Caledonia and Vanuatu is expected to affect New Zealand by late-weekend - early week.
In overnight commodities trade, US gold futures and oil continued lower. LME copper and nickel dropped.
Iron ore (China port, 62% Fe) slid, during a fifth consecutive session of falling prices.
The $A fell to ~US77.90c after slipping below ~US78.10c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets settled at or near session highs overnight, following choppy, swinging trade amid mixed reports and data releases, while waiting for a definitive imports tariffs announcement from the US president.
Some media reports repeated suggestions that all nations would be able to negotiate US aluminium and steel import tax levels once implemented per the president’s plan, and this appeared to soothe related equities trade jitters.
The $US appreciated and US government bond prices rose for a second consecutive session.
The European Central Bank (ECB), as expected, cut the usual reference in its post-policy meeting statement to increasing bond purchases if needed.
Germany’s January factory orders tumbled 3.9% against forecasts of a 1.8% drop and following a 3.0% rise in December.
In the US, a monthly jobs layoff report revealed employers planned 20% fewer job cuts in February than for January. Total January-February planned layoffs were estimated at the least since 1995.
Weekly new unemployment claims rose by 21,000, 10,000 more than broadly anticipated by economists. The four-week moving average increased 2000.
Tonight in the US, February job figures and wages are due, together with January wholesale inventories.
In overnight corporate news, US health insurance specialist Cigna revealed a $US67B proposal to acquire pharmacy benefits manager Express Scripts.
The Australian market commences Friday trade for a second consecutive session on negative key commodities leads, ahead of much-anticipated regional reports, and following confirmation of US aluminium and steel import tariffs.
The US president has ordered the new 25% steel and 10% aluminium trade taxes to be implemented within 15 days, but said he was open to negotiation on both magnitude and exemptions in the meantime.
Regionally today, China is scheduled to release February CPI and producer prices 12.30pm AEDST.
The Bank of Japan is due to announce outcomes from its policy meeting 2pm AEDST.
Select ASX trade is also likely to be influenced today by this morning’s release of the S&P/ASX March quarter indices rebalance.
Meanwhile, natural events are testing closer regional nerves.
Earlier this morning, a large earthquake hit PNG’s New Britain, east of Rabaul.
In addition, a major South Pacific tropical cyclone between New Caledonia and Vanuatu is expected to affect New Zealand by late-weekend - early week.
In overnight commodities trade, US gold futures and oil continued lower. LME copper and nickel dropped.
Iron ore (China port, 62% Fe) slid, during a fifth consecutive session of falling prices.
The $A fell to ~US77.90c after slipping below ~US78.10c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets settled at or near session highs overnight, following choppy, swinging trade amid mixed reports and data releases, while waiting for a definitive imports tariffs announcement from the US president.
Some media reports repeated suggestions that all nations would be able to negotiate US aluminium and steel import tax levels once implemented per the president’s plan, and this appeared to soothe related equities trade jitters.
The $US appreciated and US government bond prices rose for a second consecutive session.
The European Central Bank (ECB), as expected, cut the usual reference in its post-policy meeting statement to increasing bond purchases if needed.
Germany’s January factory orders tumbled 3.9% against forecasts of a 1.8% drop and following a 3.0% rise in December.
In the US, a monthly jobs layoff report revealed employers planned 20% fewer job cuts in February than for January. Total January-February planned layoffs were estimated at the least since 1995.
Weekly new unemployment claims rose by 21,000, 10,000 more than broadly anticipated by economists. The four-week moving average increased 2000.
Tonight in the US, February job figures and wages are due, together with January wholesale inventories.
In overnight corporate news, US health insurance specialist Cigna revealed a $US67B proposal to acquire pharmacy benefits manager Express Scripts.