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Market Opener – 21 Jan 2019
Local Markets Commentary
The Australian market opens a new week’s trade ahead of influential data out of China today, and a revised plan due to be presented in the UK parliament tonight governing arrangements for the UK to leave the euro zone, during a Monday public holiday weekend in the US.
Over the weekend, a US presidential concessional immigration offer, in exchange for funds for a Mexico-US border wall, appeared to be rejected by key Democrat parliamentary leaders.
In overnight Friday commodities trade, oil settled sharply higher.
US (February) gold futures fell.
Iron ore (China port 62% Fe fines), LME copper and other key base metals rallied.
The $A slipped to ~US71.65c after trading at ~US71.85c early Friday evening.
China’s December quarter GDP, plus December industrial sales, retail sales and fixed asset investment are anticipated 1pm AEDT.
The figures, together with any China administrative economic support comments, are likely to swing some of today’s trade.
Locally today, the Australian Bureau of Statistics publishes November lending finance 11.30am AEDT.
A weekly capital city residential property price report is due pre-trade.
Meanwhile, political leaders, World Bank and International Monetary Fund (IMF) officials, economists, corporate heads, central bankers and other stakeholders are preparing to meet in Davos, Switzerland for the annual World Economic Forum (WEF), scheduled for later tomorrow through Friday.
This year’s theme is ‘globalisation’.
Overseas Market Commentary
Major European and US equities markets rallied overnight Friday, following a new report supporting China-US trade optimism, this in turn benefiting key commodities trade and hence select sectors.
Mixed data appeared largely ignored.
Earlier Friday, a media report claimed China had offered to boost its US imports to an annual $US1 trillion over the period 2019 – 2024.
Reports, US and China administrative comments and speculation are expected to continue ahead of the 30 January planned resumption of formal talks in Washington, ahead of Lunar New Year.
Following a North Korea envoy visit to Washington late last week, the US administration announced a planned US-North Korea leaders’ meeting late February.
In the meantime, the US Federal Reserve New York regional president warned of US economic growth risk, from both international and domestic factors.
In the UK, December retail sales disappointed, falling 0.9% for the month after rising 1.3% in November. Year-on-year, sales were 3.0% higher, against November’s 3.4%.
Excluding fuel, retail sales dropped 1.3% during December.
The figures pushed the British pound 0.3% lower against the $US.
US December industrial production rose 0.3% for the month and 4.0% year-on-year, following respective 0.4% and 4.1% figures for November.
The University of Michigan calculated a 7.6-point drop in consumer sentiment, to a preliminary January reading of 90.7.
Tonight in the US, equities markets will not trade, due to Martin Luther King Jnr Day observance.
The International Monetary Fund (IMF) is nonetheless scheduled to release its latest global economic outlook report, ahead of the four-day World Economic Forum commencing in Davos later tomorrow.
Companies expected to report earnings for the December quarter, or provide a trading update, include Aveva and William Hill.
In overnight Friday corporate news, Netflix was pushed ~4% lower on December quarter revenue that missed forecasts, plus 2019 expenditure versus price rise analysis.
Tesla plans to reduce employee numbers by seven per cent, in order to cut costs, were revealed.
A December quarter profit warning also concerned, helping push the stock more than 10% lower.
NB: US equities markets will not trade tonight due to a public holiday. Commodities trade will be limited.
The Australian market opens a new week’s trade ahead of influential data out of China today, and a revised plan due to be presented in the UK parliament tonight governing arrangements for the UK to leave the euro zone, during a Monday public holiday weekend in the US.
Over the weekend, a US presidential concessional immigration offer, in exchange for funds for a Mexico-US border wall, appeared to be rejected by key Democrat parliamentary leaders.
In overnight Friday commodities trade, oil settled sharply higher.
US (February) gold futures fell.
Iron ore (China port 62% Fe fines), LME copper and other key base metals rallied.
The $A slipped to ~US71.65c after trading at ~US71.85c early Friday evening.
China’s December quarter GDP, plus December industrial sales, retail sales and fixed asset investment are anticipated 1pm AEDT.
The figures, together with any China administrative economic support comments, are likely to swing some of today’s trade.
Locally today, the Australian Bureau of Statistics publishes November lending finance 11.30am AEDT.
A weekly capital city residential property price report is due pre-trade.
Meanwhile, political leaders, World Bank and International Monetary Fund (IMF) officials, economists, corporate heads, central bankers and other stakeholders are preparing to meet in Davos, Switzerland for the annual World Economic Forum (WEF), scheduled for later tomorrow through Friday.
This year’s theme is ‘globalisation’.
Overseas Market Commentary
Major European and US equities markets rallied overnight Friday, following a new report supporting China-US trade optimism, this in turn benefiting key commodities trade and hence select sectors.
Mixed data appeared largely ignored.
Earlier Friday, a media report claimed China had offered to boost its US imports to an annual $US1 trillion over the period 2019 – 2024.
Reports, US and China administrative comments and speculation are expected to continue ahead of the 30 January planned resumption of formal talks in Washington, ahead of Lunar New Year.
Following a North Korea envoy visit to Washington late last week, the US administration announced a planned US-North Korea leaders’ meeting late February.
In the meantime, the US Federal Reserve New York regional president warned of US economic growth risk, from both international and domestic factors.
In the UK, December retail sales disappointed, falling 0.9% for the month after rising 1.3% in November. Year-on-year, sales were 3.0% higher, against November’s 3.4%.
Excluding fuel, retail sales dropped 1.3% during December.
The figures pushed the British pound 0.3% lower against the $US.
US December industrial production rose 0.3% for the month and 4.0% year-on-year, following respective 0.4% and 4.1% figures for November.
The University of Michigan calculated a 7.6-point drop in consumer sentiment, to a preliminary January reading of 90.7.
Tonight in the US, equities markets will not trade, due to Martin Luther King Jnr Day observance.
The International Monetary Fund (IMF) is nonetheless scheduled to release its latest global economic outlook report, ahead of the four-day World Economic Forum commencing in Davos later tomorrow.
Companies expected to report earnings for the December quarter, or provide a trading update, include Aveva and William Hill.
In overnight Friday corporate news, Netflix was pushed ~4% lower on December quarter revenue that missed forecasts, plus 2019 expenditure versus price rise analysis.
Tesla plans to reduce employee numbers by seven per cent, in order to cut costs, were revealed.
A December quarter profit warning also concerned, helping push the stock more than 10% lower.
NB: US equities markets will not trade tonight due to a public holiday. Commodities trade will be limited.