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Market Opener – 29 Jul 2019

 
Local Markets Commentary
The Australian market commences a new week’s trade with fresh data from China, ahead of the resumption of US-China trade talks in Shanghai from later tomorrow, and key international earnings reports, economic data releases, and central bank policy meetings from tomorrow through the end of the week. 

Since overnight Friday equities and commodities trade, customs data from China has revealed rare earth magnet exports to the US fell 3.9% (to ~414,000kg) during June, against May exports.

In addition, media reports out of China yesterday claimed the US has exported ‘several million tonnes’ of soybeans to China since the presidents of the US and China met, 28 June.

US records show 1.02Mt have been shipped since the meeting. Updated data is anticipated this week, however.

China’s records show the republic imported 977,024t of US soybeans during May, and 614,805t in June.

On Saturday, China reported June industrial profits had dropped 3.1% year-on-year, to 601.9B yuan ($US87.5B), following a 1.1% May rise.

Profits fell 2.4% year-on-year for January – June, to 2.93 trillion yuan, against a 2.3% January – May decline.

Profits for state-owned industrial companies tumbled 8.7% over the first six months of the year. Private sector companies’ profits were calculated 6.0% higher, however.

Locally today, a weekly capital city residential property price report is due pre-trade.

The Australian Bureau of Statistics publishes a national motor vehicle census for 31 January, at 11.30am AEST. 

Also today, CommSec is due to release a quarterly ‘State of the States’ report.

In overnight Friday commodities trade, oil again settled modestly higher.

US gold futures (August) swung to a positive settlement. 

Iron ore (Nymex CFR China, 62% Fe) added US2c/t, remaining a little above $US120.00/t.

LME copper continued to decline. Nickel seesawed to rally mode again. Aluminium fell.

The $A fell to US69.10c after trading at US69.30c early Friday evening.

Overseas Market Commentary
Major European and US equities markets ultimately bounced in varying fashion overnight Friday, the DJIA and DAX chopping markedly, the NASDAQ and S&P 500 positive and relatively stable from outset and the FTSE trending higher throughout.

In the UK, reactions from EU members regarding Irish border comments from the UK PM pointed to feverish negotiations ahead of late-October, despite traditional summer holiday breaks. 

Among data releases, Germany’s June import prices fell 1.4% for the month following a 0.1% May decline. Year-on-year prices dropped 2%.

In the US, an initial (of three) June quarter GDP growth estimate came in at 2.1% against a final 3.1% for the March quarter.

Tonight in the US, a Texas region manufacturing index is due.

Companies scheduled to report earnings later today and tonight include: Beyond Meat, Celgene, Fuji Corp, Heineken, Hitachi, Komatsu, NXP Semiconductors, Ryanair, Sanofi, SK Telecom, Stanley Electric and Transocean.

In overnight Friday corporate news, T-Mobile received final US Department of Justice approval to acquire Sprint for $US59B. 

Over the weekend, the London Stock Exchange confirmed Friday media reports that it was proposing to acquire data specialist Refinitiv in a deal worth a potential ~$US27B.

 
29/07/2019 7:00:00 AM

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