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Market Opener - 08 Dec 2016

Local Markets Commentary

The Australian market commences today’s trade on strong positive international equities leads, ahead of domestic and regional trade statistics.

In overnight commodities trade, oil continued lower. US gold futures swung higher. Iron ore (China port, 62% Fe) traded at two-year peaks, above $US82/t. Copper extended Tuesday’s fall.

The $A recovered ground through a third consecutive overnight session’s trade, after trading at US74.45c yesterday evening.

Locally today, October trade figures are due 11.30am AEDST.

Regionally, China is expected to publish November trade 1pm AEDST, and possibly FDI today, also.

Japan’s September quarter GDP (2nd estimate) is anticipated this morning.

Overseas Market Commentary

Major European and US equities markets rallied overnight.

Germany’s October industrial production was reported 0.3% higher, following expectations of a 0.8% improvement.

A US October job opportunities report estimated just 14,000 more jobs on offer than in September.

In the UK, a 1.3% fall in October industrial production pushed the British pound lower by the most in two months. A temporary oil field shutdown was blamed for most of this, but manufacturing production fell 0.9%.

Meanwhile, Italy’s PM Matteo Renzi formally resigned. Caretaker government talks are expected to commence later today and continue through Saturday.

The government also backed a request (of the European Central Bank) that more time be allowed for a further injection of (rescue) funds for Monte dei Paschi di Siena, reportedly after private interests had declined to sufficiently back the bank.

Tonight in the US, weekly new unemployment claims are due.

The European Central Bank (ECB) holds its last policy meeting of the year. The post-meeting conference is keenly anticipated due to expectations the bond purchase scheme will be extended.

Mulberry and Sports Direct are among companies scheduled to report earnings.

In overnight corporate news, Credit Suisse announced plans to cut 6000 jobs in an effort to save 1B Swiss francs.

MasterCard raised its quarterly dividend 16% and revealed plans to possibly extend a buyback by $US4B.

In the meantime, Wells Fargo was reported to be in the sights of another US regulator, and the European Commission imposed fines on Credit Agricole, HSBC and JPMorgan Chase. The trio had opted not to join an earlier settlement deal involving other major financial institutions.

Pfizer received an £84M fine from the UK’s Competition & Markets Authority over alleged ‘over-pricing’.

Fitbit proposed to purchase IP and acquire strategic personnel from smartwatch developer Pebble.

8/12/2016 7:07:40 AM

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