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Before making any investment decision, you should consult your adviser.
Market Opener – 21 Nov 2018
Local Markets Commentary
The Australian market commences mid-week trade on continuing negative international equities leads, and overnight price falls for most key metals, ahead of an early close tonight for US markets, the US Thanksgiving holiday tomorrow and another early US close Friday.
Overnight, Reserve Bank of Australia (RBA) governor Philip Lowe confirmed domestic rates would likely remain low for some time, but that the next move was more likely up than down.
Locally today, another batch of large-cap domestic stocks host AGMs and provide updates, including WOW. Please see pp2-3 for a detailed list.
Meanwhile, WES’s demerged Coles will commence trading under the code COL 11am AEDT.
In addition, Westpac and the Melbourne Institute are due to publish their monthly leading indicators report, 10.30 am AEDT.
A monthly skilled vacancies report is also expected this morning.
In overnight commodities trade, oil slid.
US (December) gold futures were also pushed lower, but modestly so.
Iron ore (China port 62% Fe) turned and fell.
LME copper also swung lower, and nickel continued so. Aluminium turned higher.
The $A fell to ~US72.20c after dropping to ~US72.55c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets dropped on opening overnight, subsequently failing to achieve meaningful recovery despite some volatility across several indices.
The International Energy Agency (IEA) warned of oil market ‘unprecedented uncertainty’ as oil prices tumbled.
The $US, having weakened early, swung 0.7% higher, bond prices also strengthening.
US tech stocks continued out of favour and a string of retail results and outlooks disappointed.
In addition, the US administration warned there would be no new promised tax relief, in particular favouring middle income earners, this year.
Late Monday, China accused US of ‘blaze of anger’ and ‘boxing ring’ type behaviour at the weekend’s Asia Pacific Economic Cooperation (APEC) forum, further cementing views no serious trade relation progress may be possible by year’s end, let alone at the 30 November – 1 December G20 leaders’ summit.
Meanwhile, Bank of England (BoE) governor Mark Carney told UK parliamentarians that the draft plan for the UK’s separation from the European Union (EU) was worthy, that business was not ready for a ‘no-deal’ scenario, and consequently a rejection of the plans, but withdrawal nonetheless occurring, would likely produce significant recession.
Dr Carney also promoted the draft’s inclusion of a transition period.
Among US data releases, October building permits decline 0.6%, but housing starts rose 1.5%.
A Philadelphia Fed services sector conditions index added 5.7 to 43.3 after falling by 9.6 in October.
In other overnight data releases, Germany’s October producer prices rose 0.3% following a 0.5% September gain. Year-on-year, prices were 3.3% higher.
Tonight in the US, a plethora of weekly and monthly economic data releases is due, ahead of and early close and Thursday’s Thanksgiving public holiday.
These include October durable goods and existing home sales, weekly new unemployment claims and mortgage applications, a consumer sentiment update from the University of Michigan, and a Conference Board leading index.
Elsewhere, the European Commission is scheduled to respond to Italy’s re-submitted proposed budget.
Meanwhile, some US retailers are expected to commence their ‘Black Friday’ sales promotions as early as tomorrow.
The sales are traditionally viewed as an indication of holiday season sales outcomes.
Companies expected to report earnings later today and tonight include: Air Asia X, Babcock, Deere & Co, Johnson Matthey, Thyssenkrupp and United Utilities.
In overnight corporate news, US banks were reported to have booked a combined $US62B worth of September quarter profit, 29.3% more than a year earlier. Tax breaks and increased operating revenues were cited by the Federal Deposit Insurance Corporation as the major buoys.
Meanwhile, US retailers Target and Kohl’s were pushed ~10% lower after undershooting quarterly expectations and/or full year outlooks.
Home improvement retailers also disappointed.
US markets are scheduled to close early tonight, and be closed Thursday, due to the Thanksgiving holiday. They will also close early Friday.
The Australian market commences mid-week trade on continuing negative international equities leads, and overnight price falls for most key metals, ahead of an early close tonight for US markets, the US Thanksgiving holiday tomorrow and another early US close Friday.
Overnight, Reserve Bank of Australia (RBA) governor Philip Lowe confirmed domestic rates would likely remain low for some time, but that the next move was more likely up than down.
Locally today, another batch of large-cap domestic stocks host AGMs and provide updates, including WOW. Please see pp2-3 for a detailed list.
Meanwhile, WES’s demerged Coles will commence trading under the code COL 11am AEDT.
In addition, Westpac and the Melbourne Institute are due to publish their monthly leading indicators report, 10.30 am AEDT.
A monthly skilled vacancies report is also expected this morning.
In overnight commodities trade, oil slid.
US (December) gold futures were also pushed lower, but modestly so.
Iron ore (China port 62% Fe) turned and fell.
LME copper also swung lower, and nickel continued so. Aluminium turned higher.
The $A fell to ~US72.20c after dropping to ~US72.55c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets dropped on opening overnight, subsequently failing to achieve meaningful recovery despite some volatility across several indices.
The International Energy Agency (IEA) warned of oil market ‘unprecedented uncertainty’ as oil prices tumbled.
The $US, having weakened early, swung 0.7% higher, bond prices also strengthening.
US tech stocks continued out of favour and a string of retail results and outlooks disappointed.
In addition, the US administration warned there would be no new promised tax relief, in particular favouring middle income earners, this year.
Late Monday, China accused US of ‘blaze of anger’ and ‘boxing ring’ type behaviour at the weekend’s Asia Pacific Economic Cooperation (APEC) forum, further cementing views no serious trade relation progress may be possible by year’s end, let alone at the 30 November – 1 December G20 leaders’ summit.
Meanwhile, Bank of England (BoE) governor Mark Carney told UK parliamentarians that the draft plan for the UK’s separation from the European Union (EU) was worthy, that business was not ready for a ‘no-deal’ scenario, and consequently a rejection of the plans, but withdrawal nonetheless occurring, would likely produce significant recession.
Dr Carney also promoted the draft’s inclusion of a transition period.
Among US data releases, October building permits decline 0.6%, but housing starts rose 1.5%.
A Philadelphia Fed services sector conditions index added 5.7 to 43.3 after falling by 9.6 in October.
In other overnight data releases, Germany’s October producer prices rose 0.3% following a 0.5% September gain. Year-on-year, prices were 3.3% higher.
Tonight in the US, a plethora of weekly and monthly economic data releases is due, ahead of and early close and Thursday’s Thanksgiving public holiday.
These include October durable goods and existing home sales, weekly new unemployment claims and mortgage applications, a consumer sentiment update from the University of Michigan, and a Conference Board leading index.
Elsewhere, the European Commission is scheduled to respond to Italy’s re-submitted proposed budget.
Meanwhile, some US retailers are expected to commence their ‘Black Friday’ sales promotions as early as tomorrow.
The sales are traditionally viewed as an indication of holiday season sales outcomes.
Companies expected to report earnings later today and tonight include: Air Asia X, Babcock, Deere & Co, Johnson Matthey, Thyssenkrupp and United Utilities.
In overnight corporate news, US banks were reported to have booked a combined $US62B worth of September quarter profit, 29.3% more than a year earlier. Tax breaks and increased operating revenues were cited by the Federal Deposit Insurance Corporation as the major buoys.
Meanwhile, US retailers Target and Kohl’s were pushed ~10% lower after undershooting quarterly expectations and/or full year outlooks.
Home improvement retailers also disappointed.
US markets are scheduled to close early tonight, and be closed Thursday, due to the Thanksgiving holiday. They will also close early Friday.