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Before making any investment decision, you should consult your adviser.
Market Opener – 28 Jun 2018
Local Markets Commentary
The Australian market commences trade, for the second last day of the financial year, following an overnight turn lower for US equities markets, and as a myriad of local stocks, mostly from the property sector, trades ex-dividend.
In overnight commodities trade, oil continued to rally.
US gold futures were pushed yet lower, albeit modestly for this session.
Iron ore (China port, 62% Fe) turned and fell.
LME copper continued to pull back. Nickel extended this week’s gains and aluminium swung higher.
The $A was pushed lower again after dropping below US73.70c early yesterday evening.
In local data releases today, the ABS publishes May job vacancies 11.30am AEST.
Regionally this morning, New Zealand’s central bank has retained a 1.75% cash rate.
Overseas Market Commentary
US equities markets opened higher overnight but began falling before mid-session. Conversely, European indices headed higher through second-half trade.
The $US and oil continued higher.
Among US international trade developments, the US administration announced an existing security review panel, the Committee on Foreign Investment in the US, would look at China’s investments in US technology ventures.
This appeared to muddy understandings of likely new arrangements following a revelation earlier this week that investments from companies with minimum 25% Chinese ownership would be arbitrarily curbed.
Consequently, caution was evident in technology sector stock trade.
Earlier yesterday, China’s central bank was reported to have influenced a further yuan depreciation towards a six-month low against the $US.
Meanwhile, the American Institute for International Steel launched legal action in the US Court of International Trade alleging a constitutional breach in the recent imposition of steel import taxes.
May durable goods orders for the US continued to fall, this time by 0.6% after a 1.6% drop in April. The decline was less than feared, however.
Wholesale inventories rose 0.5%, after a 0.1% gain in April.
Pending home sales declined further, impacted by a shortage of stock. For the month, sales fell 0.5% following a 1.3% fall in April. Year-on-year, US pending home sales have fallen for five consecutive months.
Releasing a financial stability report, Bank of England governor Mark Carney lambasted the European Commission (EU) for weak attempts to ensure regional financial security, in contrast to strong positions and proposals put forward by the UK.
The bank’s report bemoaned the EU stance amid financial sector negotiations regarding arrangements as and after the UK separated from the European Union.
Tonight in the US, a final March quarter GDP growth reading is keenly anticipated, together with weekly new unemployment claims.
Elsewhere, Bank of England chief economist Andy Haldane is scheduled to speak publicly.
Nike and Walgreens Boots Alliance are among companies scheduled to report earnings.
British American Tobacco, Burberry, Coca-Cola HBC and International Consolidated Airlines trade ex-dividend on the FTSE 100.
In overnight corporate news, Walt Disney’s proposed purchase of select Twenty-First Century Fox assets received notice of pending conditional approval from the US Department of Justice.
The Australian market commences trade, for the second last day of the financial year, following an overnight turn lower for US equities markets, and as a myriad of local stocks, mostly from the property sector, trades ex-dividend.
In overnight commodities trade, oil continued to rally.
US gold futures were pushed yet lower, albeit modestly for this session.
Iron ore (China port, 62% Fe) turned and fell.
LME copper continued to pull back. Nickel extended this week’s gains and aluminium swung higher.
The $A was pushed lower again after dropping below US73.70c early yesterday evening.
In local data releases today, the ABS publishes May job vacancies 11.30am AEST.
Regionally this morning, New Zealand’s central bank has retained a 1.75% cash rate.
Overseas Market Commentary
US equities markets opened higher overnight but began falling before mid-session. Conversely, European indices headed higher through second-half trade.
The $US and oil continued higher.
Among US international trade developments, the US administration announced an existing security review panel, the Committee on Foreign Investment in the US, would look at China’s investments in US technology ventures.
This appeared to muddy understandings of likely new arrangements following a revelation earlier this week that investments from companies with minimum 25% Chinese ownership would be arbitrarily curbed.
Consequently, caution was evident in technology sector stock trade.
Earlier yesterday, China’s central bank was reported to have influenced a further yuan depreciation towards a six-month low against the $US.
Meanwhile, the American Institute for International Steel launched legal action in the US Court of International Trade alleging a constitutional breach in the recent imposition of steel import taxes.
May durable goods orders for the US continued to fall, this time by 0.6% after a 1.6% drop in April. The decline was less than feared, however.
Wholesale inventories rose 0.5%, after a 0.1% gain in April.
Pending home sales declined further, impacted by a shortage of stock. For the month, sales fell 0.5% following a 1.3% fall in April. Year-on-year, US pending home sales have fallen for five consecutive months.
Releasing a financial stability report, Bank of England governor Mark Carney lambasted the European Commission (EU) for weak attempts to ensure regional financial security, in contrast to strong positions and proposals put forward by the UK.
The bank’s report bemoaned the EU stance amid financial sector negotiations regarding arrangements as and after the UK separated from the European Union.
Tonight in the US, a final March quarter GDP growth reading is keenly anticipated, together with weekly new unemployment claims.
Elsewhere, Bank of England chief economist Andy Haldane is scheduled to speak publicly.
Nike and Walgreens Boots Alliance are among companies scheduled to report earnings.
British American Tobacco, Burberry, Coca-Cola HBC and International Consolidated Airlines trade ex-dividend on the FTSE 100.
In overnight corporate news, Walt Disney’s proposed purchase of select Twenty-First Century Fox assets received notice of pending conditional approval from the US Department of Justice.