Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 05 Nov 2018
Local Markets Commentary
The Australian market commences a new week’s trade with influential regional reports and key domestic reports today, but geopolitical scenarios playing out through the week, and US Federal Reserve policy outcomes and trade and China inflation figures due late-week.
Tomorrow night’s (AEDT) US mid-term elections is producing plenty of potential US policy commentary, based on perceptions of the likely makeup of the US Congress, and as such, polling outcomes are expected to influence at least some market considerations this week
Regionally today, Caixin publishes its China October services PMI 12.45pm AEDT.
The Bank of Japan is scheduled to release policy meeting minutes 10.50am. Bank governor Haruhiko Kuroda is also scheduled to speak publicly today.
Locally today, a batch of economic indicators is due ahead of the Reserve Bank of Australia’s (RBA) policy meeting tomorrow, on Melbourne Cup day (a public holiday in Melbourne and most of Victoria).
AiG publishes its October services sector activity index pre-trade.
A weekly capital city residential property price index is also due before market-open.
Later this morning, the Melbourne Institute’s monthly inflation gauge report is anticipated.
The ANZ is scheduled to release a monthly job advertisements report 11.30am AEDT.
In overnight Friday commodities trade, oil and iron ore (China port, 62% Fe) extended last week’s falls.
US (December) gold futures turned lower.
LME copper and nickel continued to rally. Aluminium extended Thursday’s gain more modestly.
The $A was pushed back to ~US72.00c after trading at ~US72.40c early Friday evening.
Overseas Market Commentary
US equities markets opened higher overnight Friday, but soon headed lower on mixed economic data, corporate earnings and outlook considerations, plus geopolitical scenarios, amid a barrage of commentary and speculation regarding Tuesday’s mid-term elections.
Major European indices were dragged lower by US markets in their last two hours of trade.
Official US comments on potential US-China leader talks at a G20 summit this month, including optimism regarding any possible trade deal, varied between the administration’s senior economic advisor and US president.
The US president broadcast the final word on Friday, predicting a deal would happen, but not offering a timeframe.
In the meantime, additional US economic sanctions against Iran, in particular for oil trade, were confirmed as commencing.
Apple’s underwhelming outlook, released post-Thursday US trade weighed (traded 6.6% lower), as did uncertainty regarding tomorrow night’s (AEDT) US mid-term elections.
The $US rose following the release of the US October employment report, which included 3.1% (US86c/hr) year-on-year wages growth, up 0.2% for the month, and a 3.7% unemployment rate.
250,000 new jobs were created, ~60,000 more than expected.
Among other US data releases, the September trade deficit rose 1.3% to $US54B.
Goods and services exports and imports each rose 1.5%, to $US212.6B and $US266.6B respectively.
The goods trade deficit with China was estimated at a record $US40.2B, up 4.3% for the month.
Meanwhile, September factory orders were reported 0.7% higher for the month.
The ISM’s October New York business activity index fell 2.7 points to 69.8.
In the euro zone, the final October manufacturing PMI reading was revised 0.1 lower from the initial estimate, to 52.0, against 53.2 for September.
Tonight in the US, the ISM’s influential services sector activity index is due, together with Markit’s final October services and composite readings.
Companies scheduled to reveal earnings or provide updates later today or tonight include: Avis, Loews, Mylan, Occidental Petroleum, Softbank Group, Subaru Corp, Sysco Corp, Toho Zinc.
The Australian market commences a new week’s trade with influential regional reports and key domestic reports today, but geopolitical scenarios playing out through the week, and US Federal Reserve policy outcomes and trade and China inflation figures due late-week.
Tomorrow night’s (AEDT) US mid-term elections is producing plenty of potential US policy commentary, based on perceptions of the likely makeup of the US Congress, and as such, polling outcomes are expected to influence at least some market considerations this week
Regionally today, Caixin publishes its China October services PMI 12.45pm AEDT.
The Bank of Japan is scheduled to release policy meeting minutes 10.50am. Bank governor Haruhiko Kuroda is also scheduled to speak publicly today.
Locally today, a batch of economic indicators is due ahead of the Reserve Bank of Australia’s (RBA) policy meeting tomorrow, on Melbourne Cup day (a public holiday in Melbourne and most of Victoria).
AiG publishes its October services sector activity index pre-trade.
A weekly capital city residential property price index is also due before market-open.
Later this morning, the Melbourne Institute’s monthly inflation gauge report is anticipated.
The ANZ is scheduled to release a monthly job advertisements report 11.30am AEDT.
In overnight Friday commodities trade, oil and iron ore (China port, 62% Fe) extended last week’s falls.
US (December) gold futures turned lower.
LME copper and nickel continued to rally. Aluminium extended Thursday’s gain more modestly.
The $A was pushed back to ~US72.00c after trading at ~US72.40c early Friday evening.
Overseas Market Commentary
US equities markets opened higher overnight Friday, but soon headed lower on mixed economic data, corporate earnings and outlook considerations, plus geopolitical scenarios, amid a barrage of commentary and speculation regarding Tuesday’s mid-term elections.
Major European indices were dragged lower by US markets in their last two hours of trade.
Official US comments on potential US-China leader talks at a G20 summit this month, including optimism regarding any possible trade deal, varied between the administration’s senior economic advisor and US president.
The US president broadcast the final word on Friday, predicting a deal would happen, but not offering a timeframe.
In the meantime, additional US economic sanctions against Iran, in particular for oil trade, were confirmed as commencing.
Apple’s underwhelming outlook, released post-Thursday US trade weighed (traded 6.6% lower), as did uncertainty regarding tomorrow night’s (AEDT) US mid-term elections.
The $US rose following the release of the US October employment report, which included 3.1% (US86c/hr) year-on-year wages growth, up 0.2% for the month, and a 3.7% unemployment rate.
250,000 new jobs were created, ~60,000 more than expected.
Among other US data releases, the September trade deficit rose 1.3% to $US54B.
Goods and services exports and imports each rose 1.5%, to $US212.6B and $US266.6B respectively.
The goods trade deficit with China was estimated at a record $US40.2B, up 4.3% for the month.
Meanwhile, September factory orders were reported 0.7% higher for the month.
The ISM’s October New York business activity index fell 2.7 points to 69.8.
In the euro zone, the final October manufacturing PMI reading was revised 0.1 lower from the initial estimate, to 52.0, against 53.2 for September.
Tonight in the US, the ISM’s influential services sector activity index is due, together with Markit’s final October services and composite readings.
Companies scheduled to reveal earnings or provide updates later today or tonight include: Avis, Loews, Mylan, Occidental Petroleum, Softbank Group, Subaru Corp, Sysco Corp, Toho Zinc.