Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 05 Aug 2019
Local Markets Commentary
The Australian market opens a new week’s trade amid news of a further Persian Gulf region oil tanker seizure, with new data out of China and key domestic reports due by the end of the morning, ahead of a Reserve Bank of Australia (RBA) policy meeting tomorrow.
Over the weekend, Iran has claimed it detained an alleged fuel-smuggling vessel last Wednesday and that it has offloaded the cargo.
Regionally today, Caixin is due to release its July services PMI for China 11.45am AEST.
Locally, AiG’s July services sector activity index and a weekly home price report are due pre-trade.
ANZ is scheduled to publish its monthly job advertisements report 11.30am AEST.
The monthly Melbourne Institute inflation gauge report is also expected this morning.
In addition, DJW trades ex-dividend today. Please see p4 for details of stocks scheduled to trade ex-dividend.
Also this week, domestic corporate reporting season commences in earnest.
In overnight Friday commodities trade, oil swung higher.
US gold futures (December) rallied beyond $US1457.0/oz.
Iron ore (Nymex CFR China, 62% Fe) tumbled further.
LME copper dropped. Nickel and other base metals were also pushed decisively lower.
The $A appreciated to US68.00c after trading at ~US67.90c early Friday evening, but has been pushed below US68.00c again this morning.
Over the weekend, Iran has claimed it detained an alleged fuel-smuggling vessel last Wednesday and that it has offloaded the cargo.
Regionally today, Caixin is due to release its July services PMI for China 11.45am AEST.
Locally, AiG’s July services sector activity index and a weekly home price report are due pre-trade.
ANZ is scheduled to publish its monthly job advertisements report 11.30am AEST.
The monthly Melbourne Institute inflation gauge report is also expected this morning.
In addition, DJW trades ex-dividend today. Please see p4 for details of stocks scheduled to trade ex-dividend.
Also this week, domestic corporate reporting season commences in earnest.
In overnight Friday commodities trade, oil swung higher.
US gold futures (December) rallied beyond $US1457.0/oz.
Iron ore (Nymex CFR China, 62% Fe) tumbled further.
LME copper dropped. Nickel and other base metals were also pushed decisively lower.
The $A appreciated to US68.00c after trading at ~US67.90c early Friday evening, but has been pushed below US68.00c again this morning.
Overseas Market Commentary
Major European equities markets reacted for the first time overnight Friday to the new US tariffs announced on goods from China post-European trade Thursday.
Key US indices also opened lower and while chopping through the last trading session of the week, never looked like recovering losses.
Global economic fears appeared to remain forefront, ahead of growth and trade indicators from key nations in Asia and Europe this week, and amid material overnight Friday data from the US and broader European region.
US July employments statistics included the creation of 164,000 jobs and an on-par 0.3% rise in average earnings.
Year-on-year, earnings were up 3.2%.
Unemployment remained steady at 3.7%.
In other US data releases, the June trade deficit came in at $US55.2B, against $US55.3B for May.
June factory orders increased 0.6% after dropping 1.3% in May.
The ISM’s New York business activity index dropped to a contractionary 43.5 from 50, the cut-off between expansion and contraction.
The University of Michigan finalised its July consumer confidence reading at 98.4, against 98.2 for June.
Earlier in the euro zone, June retail sales were considered encouraging, reported 1.1% higher for the month following a 0.6% May fall. Year-on—year, sales were 2.6% higher.
Producer prices declined 0.6% after slipping 0.1% in May. Year-on-year, prices were 0.7% higher.
In the UK, the July construction PMI remained in contraction territory but rose 2.2 points from a decade low to 45.3.
Meanwhile, the British pound stabilised but still languished against the $US ahead of the planned 31 October UK-European Union (EU) separation
Tonight in the US, services sector activity indices are due from the ISM and Markit (final estimate).
In addition, speculation will continue regarding potential candidates to head the International Monetary Fund (IMF). Nominations will be received as late as 6 September ahead of a likely early-October decision. Over the weekend, the EU reportedly nominated Bulgarian World Bank chief executive Kristalina Georgieva as its preferred candidate.
Companies scheduled to report earnings later today and tonight include: BBA Aviation, cars.com, ERG, HSBC, LG, Lotte Chemical, Marriott, Softbank, Subaru and Suzuki.
In overnight Friday corporate news, Exxon Mobil reported a 21% quarterly profit drop to $US3.13B, due mostly to a fall in gas prices and rise in maintenance costs.
Chevron boosted profit by 26.3% to $US4.31B, supported by a 9% rise in overall oil and gas production.
Container shipping companies continued to suffer, Moeller Maersk trading ~4% lower than before the US had announced new import taxes on goods from China.
Over the weekend, Berkshire Hathaway has reported a $US14B June quarter net profit, $US2B higher than a year earlier. Operating profit slipped from ~$US6.9B to $US6.1B.
Key US indices also opened lower and while chopping through the last trading session of the week, never looked like recovering losses.
Global economic fears appeared to remain forefront, ahead of growth and trade indicators from key nations in Asia and Europe this week, and amid material overnight Friday data from the US and broader European region.
US July employments statistics included the creation of 164,000 jobs and an on-par 0.3% rise in average earnings.
Year-on-year, earnings were up 3.2%.
Unemployment remained steady at 3.7%.
In other US data releases, the June trade deficit came in at $US55.2B, against $US55.3B for May.
June factory orders increased 0.6% after dropping 1.3% in May.
The ISM’s New York business activity index dropped to a contractionary 43.5 from 50, the cut-off between expansion and contraction.
The University of Michigan finalised its July consumer confidence reading at 98.4, against 98.2 for June.
Earlier in the euro zone, June retail sales were considered encouraging, reported 1.1% higher for the month following a 0.6% May fall. Year-on—year, sales were 2.6% higher.
Producer prices declined 0.6% after slipping 0.1% in May. Year-on-year, prices were 0.7% higher.
In the UK, the July construction PMI remained in contraction territory but rose 2.2 points from a decade low to 45.3.
Meanwhile, the British pound stabilised but still languished against the $US ahead of the planned 31 October UK-European Union (EU) separation
Tonight in the US, services sector activity indices are due from the ISM and Markit (final estimate).
In addition, speculation will continue regarding potential candidates to head the International Monetary Fund (IMF). Nominations will be received as late as 6 September ahead of a likely early-October decision. Over the weekend, the EU reportedly nominated Bulgarian World Bank chief executive Kristalina Georgieva as its preferred candidate.
Companies scheduled to report earnings later today and tonight include: BBA Aviation, cars.com, ERG, HSBC, LG, Lotte Chemical, Marriott, Softbank, Subaru and Suzuki.
In overnight Friday corporate news, Exxon Mobil reported a 21% quarterly profit drop to $US3.13B, due mostly to a fall in gas prices and rise in maintenance costs.
Chevron boosted profit by 26.3% to $US4.31B, supported by a 9% rise in overall oil and gas production.
Container shipping companies continued to suffer, Moeller Maersk trading ~4% lower than before the US had announced new import taxes on goods from China.
Over the weekend, Berkshire Hathaway has reported a $US14B June quarter net profit, $US2B higher than a year earlier. Operating profit slipped from ~$US6.9B to $US6.1B.