Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 30 May 2019
Local Markets Commentary
The Australian market opens today’s trade ahead of closely-watched domestic data today and out of the US tonight, following decidedly negative overnight international equities trade.
In overnight commodities trade, oil fell.
US gold futures (June) swung to settle with a modest gain.
LME copper, nickel and aluminium traded lower.
The $A again moved within a narrow range after trading at US69.15c early yesterday evening.
Locally today, March quarter private sector new capital spending figures are due from the Australian Bureau of Statistics 11.30am AEST.
April building approvals will also be released then.
Several domestic high-profile stocks trade ex-dividend today, including CSR, ORI, PMV, RHL and TNE. Please see p3 for details.
In overnight commodities trade, oil fell.
US gold futures (June) swung to settle with a modest gain.
LME copper, nickel and aluminium traded lower.
The $A again moved within a narrow range after trading at US69.15c early yesterday evening.
Locally today, March quarter private sector new capital spending figures are due from the Australian Bureau of Statistics 11.30am AEST.
April building approvals will also be released then.
Several domestic high-profile stocks trade ex-dividend today, including CSR, ORI, PMV, RHL and TNE. Please see p3 for details.
Overseas Market Commentary
Major European and US equities markets fell on opening overnight, amid further economic growth warnings. Key US indices notably ultimately lost little further ground from opening levels, however.
The European Central Bank’s (ECB) six-monthly financial stability review report included a list of risks to economic progress, these including the UK withdrawing from the European Union (EU) without any definitive agreement in place, regional real estate ‘bubbles’ and governments holding high levels of debt.
Specifically, the ECB said euro zone GDP growth was at risk from financial market shock which would likely be associated with a UK-EU separation.
Across the Atlantic, Morgan Stanley warned US economic growth was at risk, with the outlook ‘deteriorating’.
Meanwhile, US bond prices continued higher, pushing yields to ~1.8-year lows.
Geopolitical issues also bubbled, the US administration again repeating views Iran was responsible for attacks on oil tankers earlier in May, and that the only reason Iran would reduce its commitment to an international nuclear agreement was ‘to seek atomic weapons’.
The US national security advisor spoke of ‘important and timely’ regional security matters as he visited the United Arab Emirates.
Reactions to a Monday US media report quoting a Chinese official as confirming rare earths US supply restrictions were under consideration also continued to cut into risk sentiment, with a new report emerging out of China yesterday. Rare earths supply is crucial in particular to the tech hardware sector.
In the meantime, Huawei had lodged an ‘unconstitutional’ legal claim against the US government in a US district court.
Overnight data releases included the US Richmond Fed manufacturing index, which jumped 67% to five.
National weekly mortgage applications dropped 3.3% ahead of the summer holiday season and despite steady 30-year mortgage rates (4.33%).
The (US) Federal Deposit Insurance Corporation (FDIC) reported an 8.7% year-on-year rise in US bank profits during the March quarter, to $US60.7B. The FDIC attributed most of the gain to net interest income boosts.
Earlier in Germany, the May unemployment rate was calculated at 5.0% from 4.9%.
Tonight in the US, the first revision of the March quarter GDP reading, April goods trade, wholesale inventories and pending home sales, plus weekly new unemployment claims are due.
Companies scheduled to report earnings include: Aveva, Costco Wholesale, Dell, Dollar General, Dollar Tree, Gap, Gazprom and Johnson Matthey.
Marks & Spencer is among stocks trading ex-dividend on the FTSE 100 amid speculation it may not be retained on this index at the next rebalance.
In overnight corporate news, Abercrombie & Fitch suffered a greater than 25% slide after undershooting expected quarterly sales and reporting a $US19M net loss, albeit against a $US42.5M loss a year earlier.
Dick’s Sporting Goods lifted full-year guidance, but was pushed more than 5% lower.
In the UK, major supermarket chains fell after an industry report confirmed further shrapnel from the discounters.
Palo Alto Networks has reported post-US trade.
The European Central Bank’s (ECB) six-monthly financial stability review report included a list of risks to economic progress, these including the UK withdrawing from the European Union (EU) without any definitive agreement in place, regional real estate ‘bubbles’ and governments holding high levels of debt.
Specifically, the ECB said euro zone GDP growth was at risk from financial market shock which would likely be associated with a UK-EU separation.
Across the Atlantic, Morgan Stanley warned US economic growth was at risk, with the outlook ‘deteriorating’.
Meanwhile, US bond prices continued higher, pushing yields to ~1.8-year lows.
Geopolitical issues also bubbled, the US administration again repeating views Iran was responsible for attacks on oil tankers earlier in May, and that the only reason Iran would reduce its commitment to an international nuclear agreement was ‘to seek atomic weapons’.
The US national security advisor spoke of ‘important and timely’ regional security matters as he visited the United Arab Emirates.
Reactions to a Monday US media report quoting a Chinese official as confirming rare earths US supply restrictions were under consideration also continued to cut into risk sentiment, with a new report emerging out of China yesterday. Rare earths supply is crucial in particular to the tech hardware sector.
In the meantime, Huawei had lodged an ‘unconstitutional’ legal claim against the US government in a US district court.
Overnight data releases included the US Richmond Fed manufacturing index, which jumped 67% to five.
National weekly mortgage applications dropped 3.3% ahead of the summer holiday season and despite steady 30-year mortgage rates (4.33%).
The (US) Federal Deposit Insurance Corporation (FDIC) reported an 8.7% year-on-year rise in US bank profits during the March quarter, to $US60.7B. The FDIC attributed most of the gain to net interest income boosts.
Earlier in Germany, the May unemployment rate was calculated at 5.0% from 4.9%.
Tonight in the US, the first revision of the March quarter GDP reading, April goods trade, wholesale inventories and pending home sales, plus weekly new unemployment claims are due.
Companies scheduled to report earnings include: Aveva, Costco Wholesale, Dell, Dollar General, Dollar Tree, Gap, Gazprom and Johnson Matthey.
Marks & Spencer is among stocks trading ex-dividend on the FTSE 100 amid speculation it may not be retained on this index at the next rebalance.
In overnight corporate news, Abercrombie & Fitch suffered a greater than 25% slide after undershooting expected quarterly sales and reporting a $US19M net loss, albeit against a $US42.5M loss a year earlier.
Dick’s Sporting Goods lifted full-year guidance, but was pushed more than 5% lower.
In the UK, major supermarket chains fell after an industry report confirmed further shrapnel from the discounters.
Palo Alto Networks has reported post-US trade.