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Before making any investment decision, you should consult your adviser.
Market Opener – 02 Feb 2018
Local Markets Commentary
Australian market trade opens on plummeting overnight US equities sentiment, but some key base metals rallies, ahead of influential domestic data and a post-policy meeting statement from the Reserve Bank of Australia (RBA).
The RBA holds a policy meeting from which an outcomes statement is expected 2.30pm AEDST.
Prior to this (11.30am), the Australian Bureau of Statistics is scheduled publish December trade and retail sales figures.
Pre-trade, a weekly consumer sentiment reading is due.
In overnight commodities trade, gold futures settled little changed.
Oil fell further. Iron ore (China port, 62% Fe) extended Friday’s gains, surpassing $US75.50/t.
LME copper and nickel turned higher and rallied.
The $A dropped below US78.90c after rising to ~US79.35c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets headed lower from the outset overnight, US sentiment notably dropping further in late trade, and sliding stock prices triggering stop-loss selling. The DJIA had never dropped as much in one session.
Again, trade was conducted amid a relative $US recovery, yet lower US 10-year sovereign bond prices, falling oil prices, and mixed data releases and corporate reports.
Meanwhile, speaking in the European Parliament, European Central Bank (ECB) president Mario Draghi promoted ‘close monitoring’ of currency volatility.
Mr Draghi described regional core inflation as ‘subdued’ and put his case for ‘patience and persistence’ with regards to current monetary policy.
Among early data releases, the euro zone’s December retail sales were reported to have fallen 1.1% for the month, following a 1.5% improvement in November. Year-on-year, sales rose 1.9%, against 2.8%.
The euro zone January composite (manufacturing and services) PMI rose 0.2 to a robust 58.8.
Germany’s 59 also represented a 0.2-point increase.
The UK’s January services PMI fell 1.2 to 53.
In the US, the ISM’s January services sector PMI reached a 12+—year high of 59.9, supported by the employment and new orders components, and 3.9 points greater than December’s reading.
Tonight in the US, December trade figures, a job opportunities report and economic optimism index are due.
Archer Daniels Midland, BNP Paribas, BP, Disney, General Motors and Toyota Motor Corp are among companies scheduled to report earnings or provide trading updates.
In overnight corporate news, Singapore’s Broadcom lifted its offer by ($US12 per share to $US82) for fellow chip manufacturer Qualcomm to a total $US146B (debt included).
Wells Fargo was propelled ~9% lower after the Federal Reserve on Friday issued an effective limit on its growth, due to regulatory ‘non-compliance’.
Bristol-Myers Squibb modestly exceeded December quarter expectations, but was pushed ~3% lower.
Archer Daniels Midland, which is due to report tonight, revealed negotiations to acquire commodities trader Bunge, helping push Bunge ~4% higher.
Australian market trade opens on plummeting overnight US equities sentiment, but some key base metals rallies, ahead of influential domestic data and a post-policy meeting statement from the Reserve Bank of Australia (RBA).
The RBA holds a policy meeting from which an outcomes statement is expected 2.30pm AEDST.
Prior to this (11.30am), the Australian Bureau of Statistics is scheduled publish December trade and retail sales figures.
Pre-trade, a weekly consumer sentiment reading is due.
In overnight commodities trade, gold futures settled little changed.
Oil fell further. Iron ore (China port, 62% Fe) extended Friday’s gains, surpassing $US75.50/t.
LME copper and nickel turned higher and rallied.
The $A dropped below US78.90c after rising to ~US79.35c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets headed lower from the outset overnight, US sentiment notably dropping further in late trade, and sliding stock prices triggering stop-loss selling. The DJIA had never dropped as much in one session.
Again, trade was conducted amid a relative $US recovery, yet lower US 10-year sovereign bond prices, falling oil prices, and mixed data releases and corporate reports.
Meanwhile, speaking in the European Parliament, European Central Bank (ECB) president Mario Draghi promoted ‘close monitoring’ of currency volatility.
Mr Draghi described regional core inflation as ‘subdued’ and put his case for ‘patience and persistence’ with regards to current monetary policy.
Among early data releases, the euro zone’s December retail sales were reported to have fallen 1.1% for the month, following a 1.5% improvement in November. Year-on-year, sales rose 1.9%, against 2.8%.
The euro zone January composite (manufacturing and services) PMI rose 0.2 to a robust 58.8.
Germany’s 59 also represented a 0.2-point increase.
The UK’s January services PMI fell 1.2 to 53.
In the US, the ISM’s January services sector PMI reached a 12+—year high of 59.9, supported by the employment and new orders components, and 3.9 points greater than December’s reading.
Tonight in the US, December trade figures, a job opportunities report and economic optimism index are due.
Archer Daniels Midland, BNP Paribas, BP, Disney, General Motors and Toyota Motor Corp are among companies scheduled to report earnings or provide trading updates.
In overnight corporate news, Singapore’s Broadcom lifted its offer by ($US12 per share to $US82) for fellow chip manufacturer Qualcomm to a total $US146B (debt included).
Wells Fargo was propelled ~9% lower after the Federal Reserve on Friday issued an effective limit on its growth, due to regulatory ‘non-compliance’.
Bristol-Myers Squibb modestly exceeded December quarter expectations, but was pushed ~3% lower.
Archer Daniels Midland, which is due to report tonight, revealed negotiations to acquire commodities trader Bunge, helping push Bunge ~4% higher.