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Market Opener - 15 May 2017

 
Local Markets Commentary

The Australian market commences a new week’s trade ahead of key data out of China, following a major international cyber-security scare, and amid ongoing political and corporate domestic budget-related ructions.

China’s industrial production, retail sales and fixed asset investment are anticipated midday AEST.

In the meantime, China has promoted a $US124B global trade plan update at a two-day summit which commenced yesterday. Dubbed the ‘New Silk Road’, the idea was launched under ‘Belt & Road’ four years ago. Almost 30 nations are in attendance, Greece, Italy, Russia and Turkey among those represented by their leaders.

In overnight Friday commodities trade, oil settled effectively flat. US gold futures gained. LME copper rose modestly. Iron ore turned higher.

The $A traded in a comparatively narrow range after trading at ~US73.90c early Friday evening.

Locally today, housing finance figures and weekly capital city house prices are due.

Overseas Market Commentary

Major European and US equities trade diverged overnight Friday, although all key indices chopped.

US equities trade again produced ultimate overall little change, indicating caution.

Germany’s March quarter GSP growth was reported at 0.6%, against 0.4% for the December quarter 2016. A final April CPI confirmed flat growth for the month and 2.0% year-on-year.

Euro zone March industrial production was estimated to have slipped 0.1% for the month, rising 1.9% year-on-year.

In US data releases, April CPI growth was estimated at 0.2%, supported by 1.1% higher energy prices and following a 0.3% fall for March. Core April CPI rose 0.1%.

April retail sales rose 0.4% for the month and 4.5% year-on-year. An initially reported 0.2% decline for March was revised to a 0.1% gain.

The initial University of Michigan May consumer sentiment index came in at 97.7, 0.7 higher than the final April reading.

Saturday, Greece released a mini-budget which included a 1.8% GDP growth forecast for 2017, 0.9% lower than the previous prediction.

Tonight in the US, a New York region business activity index is due, together with a housing market index.

In overnight Friday corporate news, US retailers JC Penney and Nordstrom each dropped ~10% after delivering disappointing quarterly results and spawning another session of weak retail sector sentiment.

Positive clinical study results pushed AstraZeneca 9% higher.

Reports have since emerged that Italian toll road and infrastructure specialist Atlantia is considering a €15B acquisition of Spanish company Abertis.

 
15/05/2017 7:52:36 AM

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