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Market Opener – 09 Nov 2018
Local Markets Commentary
The Australian market commences Friday trade ahead of further influential data out of China, and a quarterly economic forecasts update from the Reserve Bank of Australia.
Overnight international commodities and equities trade leads are mixed.
China’s October CPI and PPI are expected 12.30pm AEDT.
Locally today, the Reserve Bank of Australia (RBA) publishes a quarterly monetary policy statement, backed by updated forecasts, 11.30am AEDT.
September housing finance figures are due at the same time.
CSR and JHG trade ex-dividend. Please see pp2-4 for detailed lists.
In overnight commodities trade, oil fell further.
US (December) gold futures turned modestly lower.
Iron ore (China port 62% Fe) swung higher.
LME copper again settled essentially flat. Nickel turned lower.
The $A fell to ~US72.55c after briefly surpassing US72.90c early yesterday evening.
Overseas Market Commentary
Vacillating sentiment was evident across major European and US equities markets overnight.
Earlier, China’s headline trade figures had surprised with their relative strength, including a 13.2% year-on-year increase in exports to the US.
This, ahead of a scheduled meeting tonight in Washington between US secretary of State Mike Pompeo and Chinese officials, in turn ahead of a proposed meeting between the presidents of China and the US during the G20 leaders’ summit later this month.
In a post-policy meeting statement released during US trade, the US Federal Reserve noted business investment had slowed from earlier this year, but that consumer spending and a strong jobs market indicated economic strength.
Outlook risks were described as ‘roughly balanced’.
The Fed kept rates on hold, at 2.00% - 2.25%, but the statement was interpreted as leading to another 0.25% rise in December.
In the euro zone, economic forecasts proved a dampener, citing the UK’s planned separation firm the European Union (EU), Italy’s proposed deficit-building budget and international trade disputes as growth risks.
In the UK, debate raged on how close UK and European Union negotiators were to announcing draft separation arrangements.
Speaking in Dublin, European Central Bank (ECB) president Mario Draghi warned a no-deal outcome was conceivable.
Meanwhile, Germany’s September trade surplus was reported to have slipped to €17.6B from €18.2B at the end of August.
Exports fell 0.8% for the month, and imports 0.4%, after respectively rising 0.1% and dropping 2.4% in August.
US weekly new unemployment claims fell by 1000, half the expected tally.
Tonight in the US, October producer prices, September wholesale inventories and an initial November consumer sentiment reading from the University of Michigan are due.
Elsewhere, the UK reports a swag of influential data, including September quarter GDP growth.
Companies scheduled to reveal earnings or provide updates later today or tonight include Allianz, ComfortDelGro Corp and Spotify.
In overnight corporate news, Tesla announced a new chair appointment. Tesla director and Telstra (ASX: TLS) CFO Robyn Denholm will take over from founder Elon Musk who will remain CEO.
Chip manufacturer Qualcomm was pushed more than eight per cent lower after post-Wednesday US trade issuing a weaker-than-anticipated December quarter revenue forecast, in part due to lost Apple trade.
The Australian market commences Friday trade ahead of further influential data out of China, and a quarterly economic forecasts update from the Reserve Bank of Australia.
Overnight international commodities and equities trade leads are mixed.
China’s October CPI and PPI are expected 12.30pm AEDT.
Locally today, the Reserve Bank of Australia (RBA) publishes a quarterly monetary policy statement, backed by updated forecasts, 11.30am AEDT.
September housing finance figures are due at the same time.
CSR and JHG trade ex-dividend. Please see pp2-4 for detailed lists.
In overnight commodities trade, oil fell further.
US (December) gold futures turned modestly lower.
Iron ore (China port 62% Fe) swung higher.
LME copper again settled essentially flat. Nickel turned lower.
The $A fell to ~US72.55c after briefly surpassing US72.90c early yesterday evening.
Overseas Market Commentary
Vacillating sentiment was evident across major European and US equities markets overnight.
Earlier, China’s headline trade figures had surprised with their relative strength, including a 13.2% year-on-year increase in exports to the US.
This, ahead of a scheduled meeting tonight in Washington between US secretary of State Mike Pompeo and Chinese officials, in turn ahead of a proposed meeting between the presidents of China and the US during the G20 leaders’ summit later this month.
In a post-policy meeting statement released during US trade, the US Federal Reserve noted business investment had slowed from earlier this year, but that consumer spending and a strong jobs market indicated economic strength.
Outlook risks were described as ‘roughly balanced’.
The Fed kept rates on hold, at 2.00% - 2.25%, but the statement was interpreted as leading to another 0.25% rise in December.
In the euro zone, economic forecasts proved a dampener, citing the UK’s planned separation firm the European Union (EU), Italy’s proposed deficit-building budget and international trade disputes as growth risks.
In the UK, debate raged on how close UK and European Union negotiators were to announcing draft separation arrangements.
Speaking in Dublin, European Central Bank (ECB) president Mario Draghi warned a no-deal outcome was conceivable.
Meanwhile, Germany’s September trade surplus was reported to have slipped to €17.6B from €18.2B at the end of August.
Exports fell 0.8% for the month, and imports 0.4%, after respectively rising 0.1% and dropping 2.4% in August.
US weekly new unemployment claims fell by 1000, half the expected tally.
Tonight in the US, October producer prices, September wholesale inventories and an initial November consumer sentiment reading from the University of Michigan are due.
Elsewhere, the UK reports a swag of influential data, including September quarter GDP growth.
Companies scheduled to reveal earnings or provide updates later today or tonight include Allianz, ComfortDelGro Corp and Spotify.
In overnight corporate news, Tesla announced a new chair appointment. Tesla director and Telstra (ASX: TLS) CFO Robyn Denholm will take over from founder Elon Musk who will remain CEO.
Chip manufacturer Qualcomm was pushed more than eight per cent lower after post-Wednesday US trade issuing a weaker-than-anticipated December quarter revenue forecast, in part due to lost Apple trade.