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Market Opener – 27 Nov 2018
Local Markets Commentary
The Australian market commences today’s trade ahead of material data out of China, and following a bounce in international equities sentiment overnight, but a drop in iron ore prices, amid warnings of further volatility this week.
China is expected to report October industrial profits 12.30pm AEDT.
Also regionally, New Zealand has this morning reported a $NZ 1.295B October trade (goods) deficit, against expectations of $NZ850M, and following imports totalling $NZ6.15B and $NZ4.86B worth of exports.
Locally today, a weekly consumer sentiment reading is due pre-trade.
Several high-profile companies are also hosting AGMs and providing updates. Please see pp2-3.
In overnight commodities trade, oil swung higher.
Iron ore (China port 62% Fe) tumbled decisively, substantially picking up the pace in its fifth consecutive sessional fall.
US (December) gold futures settled slightly lower.
LME copper and nickel continued to decline modestly. Aluminium posted another slight gain.
The $A has been pushed below US72.20c after surpassing US72.65c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets opened higher overnight and headed towards further gains.
Oil prices bounced; retailers appeared upbeat regarding Black Friday and Cyber Monday sales; in association select tech sector stocks appeared back in favour; markets were reacting for the first time to a weekend European Union (EU) leaders’ approval of the draft UK separation deal, and reports Italy and the European Commission (EC) would continue discussions regarding Italy’s proposed budget; and additional non-tech sector corporate announcements propelled select large-cap stocks higher.
European Central Bank (ECB) president Mario Draghi told a European Union parliament economic committee overnight that an Italy – EC deal was possible and that the ECB still planned to end a monthly bond purchase program at the end of the year.
In new US data releases, the Chicago Fed’s October national activity index rose to 0.24 from 0.14.
A Texas region manufacturing index dropped to 17.6 from 29.4.
In Germany, an IFO business climate index slipped to 102, from 102.9. The expectations index declined one point to 98.7.
Meanwhile, in its latest update the World Trade Organisation (WTO) lowered its ‘trade outlook indicator’ from 100.3 in August to a contractionary 98.6.
Further, each of the seven indicator components declined.
The WTO is predicting international trade growth for 2018 will come in at 3.9% and for 2019, at 3.7%, following 4.7% last year. In April, the WTO had forecast 4.4% and 4.0% gains for 2018 and 2019 respectively.
Tonight in the US, a Texas region services sector activity index is due, together with two residential property price reports and a Conference Board consumer confidence reading.
In addition, four Federal Reserve officials are scheduled to speak publicly, including the vice chair.
Elsewhere, Bank of England officials are due to appear today (AEDT) before a UK parliamentary economics committee, in part to provide observations on the proposed conditions for the UK’s withdrawal from the EU.
In overnight corporate news, General Motors revealed significant restructuring plans in favour of a greater focus on self-drive and electric vehicles, and in response to reduced demand for sedans, and generally more onerous export and import conditions. The plans include the closure of up to seven plants, including five in North America.
Ahead of firm figures, Adobe Analytics predicted US Cyber Monday retail sales could reach $US7.8B, and that over the holiday season, sales could exceed $US124B.
The Australian market commences today’s trade ahead of material data out of China, and following a bounce in international equities sentiment overnight, but a drop in iron ore prices, amid warnings of further volatility this week.
China is expected to report October industrial profits 12.30pm AEDT.
Also regionally, New Zealand has this morning reported a $NZ 1.295B October trade (goods) deficit, against expectations of $NZ850M, and following imports totalling $NZ6.15B and $NZ4.86B worth of exports.
Locally today, a weekly consumer sentiment reading is due pre-trade.
Several high-profile companies are also hosting AGMs and providing updates. Please see pp2-3.
In overnight commodities trade, oil swung higher.
Iron ore (China port 62% Fe) tumbled decisively, substantially picking up the pace in its fifth consecutive sessional fall.
US (December) gold futures settled slightly lower.
LME copper and nickel continued to decline modestly. Aluminium posted another slight gain.
The $A has been pushed below US72.20c after surpassing US72.65c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets opened higher overnight and headed towards further gains.
Oil prices bounced; retailers appeared upbeat regarding Black Friday and Cyber Monday sales; in association select tech sector stocks appeared back in favour; markets were reacting for the first time to a weekend European Union (EU) leaders’ approval of the draft UK separation deal, and reports Italy and the European Commission (EC) would continue discussions regarding Italy’s proposed budget; and additional non-tech sector corporate announcements propelled select large-cap stocks higher.
European Central Bank (ECB) president Mario Draghi told a European Union parliament economic committee overnight that an Italy – EC deal was possible and that the ECB still planned to end a monthly bond purchase program at the end of the year.
In new US data releases, the Chicago Fed’s October national activity index rose to 0.24 from 0.14.
A Texas region manufacturing index dropped to 17.6 from 29.4.
In Germany, an IFO business climate index slipped to 102, from 102.9. The expectations index declined one point to 98.7.
Meanwhile, in its latest update the World Trade Organisation (WTO) lowered its ‘trade outlook indicator’ from 100.3 in August to a contractionary 98.6.
Further, each of the seven indicator components declined.
The WTO is predicting international trade growth for 2018 will come in at 3.9% and for 2019, at 3.7%, following 4.7% last year. In April, the WTO had forecast 4.4% and 4.0% gains for 2018 and 2019 respectively.
Tonight in the US, a Texas region services sector activity index is due, together with two residential property price reports and a Conference Board consumer confidence reading.
In addition, four Federal Reserve officials are scheduled to speak publicly, including the vice chair.
Elsewhere, Bank of England officials are due to appear today (AEDT) before a UK parliamentary economics committee, in part to provide observations on the proposed conditions for the UK’s withdrawal from the EU.
In overnight corporate news, General Motors revealed significant restructuring plans in favour of a greater focus on self-drive and electric vehicles, and in response to reduced demand for sedans, and generally more onerous export and import conditions. The plans include the closure of up to seven plants, including five in North America.
Ahead of firm figures, Adobe Analytics predicted US Cyber Monday retail sales could reach $US7.8B, and that over the holiday season, sales could exceed $US124B.