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Market Opener – 25 Jan 2019
Local Markets Commentary
The Australian market opens Friday trade again on vacillating overnight international equities and commodities sentiment, ahead of a domestic Monday public holiday weekend.
In overnight commodities trade, WTI crude settled higher.
US gold futures (April) closed slightly lower.
Iron ore (China port 62% Fe fines) turned to record a modest gain.
LME copper and aluminium headed lower. Nickel continued higher.
The $A traded in a narrow range after dropping below US71.0c early yesterday evening.
Overseas Market Commentary
Choppy trade featured across major European and US equities markets overnight, investors wading through a spate of economic growth commentary, and decidedly mixed data, amid a $US rally.
US commerce secretary Wilbur Ross debunked any views of a near-term trade agreement with China.
International Monetary Fund (IMF) MD Christine Lagarde indicated to World Economic Forum participants that China’s slowdown was acceptable, against previous unsustainable economic growth rates.
Wednesday, China VP Wang Qishan had asserted sustainable domestic economic growth was achievable.
European Central Bank (ECB) Mario Draghi pushed the euro to an eight-month low against the $US with a post-policy meeting declaration the regional economic growth was facing ‘increasing threats’ amid ‘the persistence of uncertainties related to geopolitical factors and the threat of protectionism, vulnerabilities in emerging markets and financial market volatility’.
The official ECB post-policy meeting statement assured status quo for rates would remain ‘as long as necessary’, and predicted this would be at least through this year’s northern summer.
In early overnight data releases, euro zone initial January PMIs mostly disappointed, the region’s manufacturing estimate falling to 50.5 from 51.4 and services sector activity coming in at 50.8 from 51.2.
Germany’s respective readings were 49.9 and 53.1, from 51.5 and 51.8 respectively.
In the US, Markit initial January PMI estimates came in at 54.2 for the services sector and 54.9 for manufacturing, following 54.4 and 53.8 respective in final December readings.
The Conference Board’s leading index was reported at -0.1%, from 0.2%.
A Kansas City Fed manufacturing index jumped to two from -13.
Weekly new unemployment claims fell by 13,000 to a sub-200,000 tally for the first time in ~40 years.
Tonight in the US, durable goods orders were scheduled for release, but the report is expected to be delayed.
Companies expected to report earnings for the December quarter, or provide a trading update, include: AbbVie, Colgate-Palmolive, Ericsson and Vodafone.
In overnight corporate news, a regulatory clearance for California-fires shackled utility PG&E propelled the stock more than 70% higher.
Two chip manufacturers, Texas Instruments and Xilinx supported tech sentiment, in particular with relatively pleasing guidance.
Post-US trade, an Intel forecast has disappointed, however, and is likely to influence at least some of tonight’s trade.
The Australian market opens Friday trade again on vacillating overnight international equities and commodities sentiment, ahead of a domestic Monday public holiday weekend.
In overnight commodities trade, WTI crude settled higher.
US gold futures (April) closed slightly lower.
Iron ore (China port 62% Fe fines) turned to record a modest gain.
LME copper and aluminium headed lower. Nickel continued higher.
The $A traded in a narrow range after dropping below US71.0c early yesterday evening.
Overseas Market Commentary
Choppy trade featured across major European and US equities markets overnight, investors wading through a spate of economic growth commentary, and decidedly mixed data, amid a $US rally.
US commerce secretary Wilbur Ross debunked any views of a near-term trade agreement with China.
International Monetary Fund (IMF) MD Christine Lagarde indicated to World Economic Forum participants that China’s slowdown was acceptable, against previous unsustainable economic growth rates.
Wednesday, China VP Wang Qishan had asserted sustainable domestic economic growth was achievable.
European Central Bank (ECB) Mario Draghi pushed the euro to an eight-month low against the $US with a post-policy meeting declaration the regional economic growth was facing ‘increasing threats’ amid ‘the persistence of uncertainties related to geopolitical factors and the threat of protectionism, vulnerabilities in emerging markets and financial market volatility’.
The official ECB post-policy meeting statement assured status quo for rates would remain ‘as long as necessary’, and predicted this would be at least through this year’s northern summer.
In early overnight data releases, euro zone initial January PMIs mostly disappointed, the region’s manufacturing estimate falling to 50.5 from 51.4 and services sector activity coming in at 50.8 from 51.2.
Germany’s respective readings were 49.9 and 53.1, from 51.5 and 51.8 respectively.
In the US, Markit initial January PMI estimates came in at 54.2 for the services sector and 54.9 for manufacturing, following 54.4 and 53.8 respective in final December readings.
The Conference Board’s leading index was reported at -0.1%, from 0.2%.
A Kansas City Fed manufacturing index jumped to two from -13.
Weekly new unemployment claims fell by 13,000 to a sub-200,000 tally for the first time in ~40 years.
Tonight in the US, durable goods orders were scheduled for release, but the report is expected to be delayed.
Companies expected to report earnings for the December quarter, or provide a trading update, include: AbbVie, Colgate-Palmolive, Ericsson and Vodafone.
In overnight corporate news, a regulatory clearance for California-fires shackled utility PG&E propelled the stock more than 70% higher.
Two chip manufacturers, Texas Instruments and Xilinx supported tech sentiment, in particular with relatively pleasing guidance.
Post-US trade, an Intel forecast has disappointed, however, and is likely to influence at least some of tonight’s trade.