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Market Opener – 05 Apr 2019
Local Markets Commentary
The Australian market commences Friday trade on mixed overnight international equities and commodities trade sentiment, ahead of some key domestic and regional data releases and US monthly employment statistics in the US tonight.
Post-US trade, the US president has predicted a US-China trade agreement could be in hand sometime in May.
In overnight commodities trade, Brent crude settled a little higher, but WTI lower.
US gold futures (June) fell by $US1.00.
Iron ore (China port, 62% Fe) was pushed slightly lower.
LME copper and nickel swung lower.
The $A traded at ~US71.10c after dropping from ~US71.20c early yesterday evening.
Locally today, AiG releases its March construction PMI pre-trade.
Regionally, Japan’s average earnings and household spending figures are expected 10.30am AEDT.
China’s March foreign reserves are anticipated anytime from this weekend.
Overseas Market Commentary
Major European and US equities markets were again impacted by vacillating sentiment overnight, this time the DJIA proving the exception.
Speculation abounded the US president was planning to host China’s vice premier Liu He at the White House ~4.40pm local time, given the perceived status of China-US trade negotiations.
European Central Bank (ECB) March policy meeting minutes revealed a proposal for a potential stay on any rate increases until at least March 2020.
Earlier, Germany’s factory orders had been reported as having tumbled 4.2% during February. This, after a 2.1% January drop.
A construction PMI heartened however, rising 0.9 to a healthy 55.6.
A media report claimed Italy would likely significantly reduce forecast 2019 economic growth and lift the controversial budget deficit target to ~2.3% of GDP.
The euro subsequently traded close to ~1.7-year lows against the $US, as in early March.
In the UK parliament, debate raged within all groups after the House of Commons approved late-Wednesday, by a majority of one vote, a proposal for the PM to request from the European Union (EU) another delay for the UK’s planned EU withdrawal.
This must be approved by the House of Lords to become binding, but early signs suggested another rejection.
Meanwhile, new car sales were reported to have slid 3.4% during March following a 1.4% February rise.
In US data releases, weekly initial jobless claims fell by 10,000 to 202,000 (lodged during the week), the least seven-day tally since first-half December 1969.
The four-week moving average declined by 4000, to 213,500, the least since first-half October 2018.
The Challenger job cuts report included a 21% fall (to 60,587) in planned layoffs during March.
Cuts rose 10.3% to 190,410 during the March quarter, the lion’s share again coming from the retail sector.
Meanwhile, India’s central bank cut its overnight deposit rate by 0.25% to 6.0%.
Tonight in the US, March national employment statistics are keenly anticipated. February consumer credit figures are also due.
Elsewhere, Germany reports February industrial production, ahead of trade figures Monday.
In overnight corporate news, Deutsche Bank was reported to be heading towards another fund raiser, due to the European Central Bank planning to include a minimal capital requirement as a condition for any approval for a potential merger with Commerzbank to go ahead.
In the meantime, reports also emerged that Italy’s UniCredit was interested in lobbing a bid for Commerzbank.
Constellation Brands lodged a better-than anticipated fourth quarter, and revealed it was selling ~30 wine brands for a total ~$US1.7B, to E & J Gallo Winery.
Tesla reported a 31% drop in March quarter vehicle deliveries but reaffirmed full year expectations.
Ford Motor revealed a 1.6% fall in US March quarter vehicle sales, 23.7% for cars.
The Australian market commences Friday trade on mixed overnight international equities and commodities trade sentiment, ahead of some key domestic and regional data releases and US monthly employment statistics in the US tonight.
Post-US trade, the US president has predicted a US-China trade agreement could be in hand sometime in May.
In overnight commodities trade, Brent crude settled a little higher, but WTI lower.
US gold futures (June) fell by $US1.00.
Iron ore (China port, 62% Fe) was pushed slightly lower.
LME copper and nickel swung lower.
The $A traded at ~US71.10c after dropping from ~US71.20c early yesterday evening.
Locally today, AiG releases its March construction PMI pre-trade.
Regionally, Japan’s average earnings and household spending figures are expected 10.30am AEDT.
China’s March foreign reserves are anticipated anytime from this weekend.
Overseas Market Commentary
Major European and US equities markets were again impacted by vacillating sentiment overnight, this time the DJIA proving the exception.
Speculation abounded the US president was planning to host China’s vice premier Liu He at the White House ~4.40pm local time, given the perceived status of China-US trade negotiations.
European Central Bank (ECB) March policy meeting minutes revealed a proposal for a potential stay on any rate increases until at least March 2020.
Earlier, Germany’s factory orders had been reported as having tumbled 4.2% during February. This, after a 2.1% January drop.
A construction PMI heartened however, rising 0.9 to a healthy 55.6.
A media report claimed Italy would likely significantly reduce forecast 2019 economic growth and lift the controversial budget deficit target to ~2.3% of GDP.
The euro subsequently traded close to ~1.7-year lows against the $US, as in early March.
In the UK parliament, debate raged within all groups after the House of Commons approved late-Wednesday, by a majority of one vote, a proposal for the PM to request from the European Union (EU) another delay for the UK’s planned EU withdrawal.
This must be approved by the House of Lords to become binding, but early signs suggested another rejection.
Meanwhile, new car sales were reported to have slid 3.4% during March following a 1.4% February rise.
In US data releases, weekly initial jobless claims fell by 10,000 to 202,000 (lodged during the week), the least seven-day tally since first-half December 1969.
The four-week moving average declined by 4000, to 213,500, the least since first-half October 2018.
The Challenger job cuts report included a 21% fall (to 60,587) in planned layoffs during March.
Cuts rose 10.3% to 190,410 during the March quarter, the lion’s share again coming from the retail sector.
Meanwhile, India’s central bank cut its overnight deposit rate by 0.25% to 6.0%.
Tonight in the US, March national employment statistics are keenly anticipated. February consumer credit figures are also due.
Elsewhere, Germany reports February industrial production, ahead of trade figures Monday.
In overnight corporate news, Deutsche Bank was reported to be heading towards another fund raiser, due to the European Central Bank planning to include a minimal capital requirement as a condition for any approval for a potential merger with Commerzbank to go ahead.
In the meantime, reports also emerged that Italy’s UniCredit was interested in lobbing a bid for Commerzbank.
Constellation Brands lodged a better-than anticipated fourth quarter, and revealed it was selling ~30 wine brands for a total ~$US1.7B, to E & J Gallo Winery.
Tesla reported a 31% drop in March quarter vehicle deliveries but reaffirmed full year expectations.
Ford Motor revealed a 1.6% fall in US March quarter vehicle sales, 23.7% for cars.