Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 03 May 2019
Local Markets Commentary
The Australian market commences Friday trade on mostly negative overnight equities and key commodities trade leads, ahead of influential data out of the US tonight and with the London Metals Exchange heading towards a Monday public holiday weekend.
Locally today, AiG releases its April services sector activity index pre-trade.
March building approvals are due from the Australian Bureau of Statistics (ABS) 11.30am AEST.
In addition, MQG has reported full year results.
In overnight commodities trade, oil and US gold futures (June) fell.
LME copper extended Wednesday’s tumble.
The $A slipped below US70.00c after trading at ~US70.25c early yesterday evening.
Japan’s markets will remain closed through Monday next week.
China’s markets are also closed but will trade Monday.
Locally today, AiG releases its April services sector activity index pre-trade.
March building approvals are due from the Australian Bureau of Statistics (ABS) 11.30am AEST.
In addition, MQG has reported full year results.
In overnight commodities trade, oil and US gold futures (June) fell.
LME copper extended Wednesday’s tumble.
The $A slipped below US70.00c after trading at ~US70.25c early yesterday evening.
Japan’s markets will remain closed through Monday next week.
China’s markets are also closed but will trade Monday.
Overseas Market Commentary
Overnight China-US trade agreement speculation, mixed corporate earnings and news, falling oil prices, a snatch of positive US data, central bank considerations, and simmering geopolitical tensions again produced choppy trade and swings across major European and US equities markets.
Media report promotions included a reduction in US tariffs on Chinese imports and a possible agreement statement by the end of next week.
This week’s high-level US-China talks in Beijing have concluded, with the next round confirmed for Washington next week.
In the UK, the Bank of England supported the British pound, raising its UK 2019 GDP growth prediction by 0.2% to 1.5%.
The central bank also forecast the inflation to rise beyond 2% during 2020, after falling to 1.6% this year.
Pending what happens with the UK’s plans to separate from the European Union this year, governor Mark Carney warned at a post-policy meeting press conference that rates could begin to rise more quickly than anticipated by most.
For now, the bank expects just one rate move, a rise, by 2021.
Meanwhile in UK data releases, the April construction PMI rose to an expansionary 50.5 from 49.7.
Germany’s final April manufacturing PMI represented a 0.3-point rise to 44.4.
March retail sales slipped 0.2% after rising 0.5% in February.
Year-on-year, sales were 2.1% lower.
The euro zone’s final April manufacturing PMI was 0.4 higher than for March, at 47.9.
In the US, March quarter productivity was reported 3.6% higher year-on-year, following a 1.3% December quarter increase.
March factory orders also rose, by 1.9%, the most in nine months, following a 0.3% February decline.
The ISM’s April New York business activity index also pleased, rising to 77.3 from 66.9.
An April job cuts report estimated 40,000 additional layoffs were planned during the month, following 60,600 in March.
Weekly new unemployment claims came in flat, following predictions of a 15,000 fall against last week’s 37,000 jump.
The four-week moving average rose by 6500.
Tonight in the US, April national employment statistics are due, together with the ISM’s services sector activity index.
March wholesale inventories and April vehicle sales are also expected.
Companies scheduled to report earnings later today or tonight include: adidas, Audi, BASF, Fiat Chrysler, HSBC, Lotte Chemical, Novo Nordisk and Société Générale.
In overnight corporate news, Royal Dutch Shell reported a smaller-than-expected quarterly profit pull back, following disappointing figures from a string of industry majors over the past week.
Across the Atlantic, Dow was pushed more than 5% lower following a 24% core profit drop. DowDuPont profit, separately reported, tumbled 28%.
Canada-headquartered aerospace and rail specialist Bombardier confirmed reports from earlier in the week, that it was considering selling its Northern Ireland business.
Meanwhile, California-headquartered Beyond Meat completed its NASDAQ listing, opening at $US46 following a $US25-per-share IPO.
Berkshire Hathaway will release results and host its AGM over the weekend.
UK markets, including the London Metals Exchange (LME) will be closed Monday, due to a public holiday.
Media report promotions included a reduction in US tariffs on Chinese imports and a possible agreement statement by the end of next week.
This week’s high-level US-China talks in Beijing have concluded, with the next round confirmed for Washington next week.
In the UK, the Bank of England supported the British pound, raising its UK 2019 GDP growth prediction by 0.2% to 1.5%.
The central bank also forecast the inflation to rise beyond 2% during 2020, after falling to 1.6% this year.
Pending what happens with the UK’s plans to separate from the European Union this year, governor Mark Carney warned at a post-policy meeting press conference that rates could begin to rise more quickly than anticipated by most.
For now, the bank expects just one rate move, a rise, by 2021.
Meanwhile in UK data releases, the April construction PMI rose to an expansionary 50.5 from 49.7.
Germany’s final April manufacturing PMI represented a 0.3-point rise to 44.4.
March retail sales slipped 0.2% after rising 0.5% in February.
Year-on-year, sales were 2.1% lower.
The euro zone’s final April manufacturing PMI was 0.4 higher than for March, at 47.9.
In the US, March quarter productivity was reported 3.6% higher year-on-year, following a 1.3% December quarter increase.
March factory orders also rose, by 1.9%, the most in nine months, following a 0.3% February decline.
The ISM’s April New York business activity index also pleased, rising to 77.3 from 66.9.
An April job cuts report estimated 40,000 additional layoffs were planned during the month, following 60,600 in March.
Weekly new unemployment claims came in flat, following predictions of a 15,000 fall against last week’s 37,000 jump.
The four-week moving average rose by 6500.
Tonight in the US, April national employment statistics are due, together with the ISM’s services sector activity index.
March wholesale inventories and April vehicle sales are also expected.
Companies scheduled to report earnings later today or tonight include: adidas, Audi, BASF, Fiat Chrysler, HSBC, Lotte Chemical, Novo Nordisk and Société Générale.
In overnight corporate news, Royal Dutch Shell reported a smaller-than-expected quarterly profit pull back, following disappointing figures from a string of industry majors over the past week.
Across the Atlantic, Dow was pushed more than 5% lower following a 24% core profit drop. DowDuPont profit, separately reported, tumbled 28%.
Canada-headquartered aerospace and rail specialist Bombardier confirmed reports from earlier in the week, that it was considering selling its Northern Ireland business.
Meanwhile, California-headquartered Beyond Meat completed its NASDAQ listing, opening at $US46 following a $US25-per-share IPO.
Berkshire Hathaway will release results and host its AGM over the weekend.
UK markets, including the London Metals Exchange (LME) will be closed Monday, due to a public holiday.