Research

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

State One Market Opener - 18 Aug 2016

 
Local Markets Commentary

Australian market investors are faced today with key domestic and regional data releases and a barrage of corporate reports.

Overnight international leads are largely uninspiring.

In commodities trade, oil continued to climb, settling moderately higher. US gold futures settled modestly lower. Copper and iron ore swung lower.

The $A has climbed to ~US76.55c after trading at ~US76.35c yesterday evening.

Locally today, July workforce figures, as calculated by the ABS, are due 11.30am AEST.

The RBA also publishes reserve assets and forex transactions.

Regionally, China releases July property prices 11.30am AEST and Japan July trade statistics 9.50am.

Overseas Market Commentary

Major European equities markets continued lower overnight, while key US indices settled slightly higher following ructions on Federal Reserve July policy meeting minutes.

The minutes showed the 27 July decision on any rate move was not unanimous, and indicated a rise before the end of the year remained conditionally possible.

In other US releases, weekly mortgage applications were reported to have fallen 4%.

Tonight in the US, weekly new unemployment claims are due, together with a July leading indicators report and regional manufacturing index.

In the euro zone, a final July CPI reading will be released and the European Central Bank (ECB) publishes July policy meeting minutes.

Companies scheduled to report earnings today and tonight include: Nestlé, Wal-Mart, Gap, Lenovo and Premier Oil.

Overnight, fortunes of US stocks across and within sectors varied markedly.

Retailers Lowe’s and Target Corp dropped on concerning respective sales and guidance.

Staples reported a swing to a loss, revealed plans to closed 50 stores, and traded 7% lower.

Urban Outfitters was pushed 15% higher however, after exceeding revenue and profit expectations.

Valeant Pharmaceuticals appreciated 12% on a positive research report.

Barnes & Noble fell 11% on the departure of the CEO.

Cisco Systems reported post-US trade, announcing job cuts that would represent up to 7% of employees.

In the meantime, Norway’s sovereign wealth fund revealed a drop in the value of UK property holdings.

Brewer Carlsberg suffered after undershooting interim expectations, and despite retaining 2016 guidance.

Chinese company Tencent Holdings reported 47% higher quarterly profit, mobile games revenue rising more than 100%.

 
18/08/2016 7:47:39 AM

Back to top