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Before making any investment decision, you should consult your adviser.
Market Opener – 05 Sep 2018
Local Markets Commentary
The Australian market opens mid-week trade with little to inspire from overnight international trade, ahead of influential domestic and regional economic indicator reports, and as a swag of large-cap domestic stocks trades ex-dividend.
Locally today, the Australian Bureau of Statistics (ABS) reports June quarter GDP 11.30am AEST.
Pre-trade, AiG is due to publish its August services sector activity index.
Vehicle sales are also expected today.
Companies trading ex-dividend include IVC, IRE, MPL, QAN, RHC and TWE. Please see p3 for details.
Regionally today, Caixin is scheduled to release its China August services PMI 11.45am AEST.
A services PMI is also due for Japan, 10.30am AEST.
In overnight commodities trade, oil settled barely changed.
US gold futures fell.
Iron ore (China port, 62% Fe) swung higher.
LME copper and other key base metals were sold down.
The $A subsequently covered comparatively little ground after falling beneath US71.75c early yesterday evening.
Overseas Market Commentary
Swinging sentiment was evident across US equities markets overnight, but key indices closed near session highs.
Major European equities markets trended lower through to the last hour of trade.
In US data releases, the ISM’s August manufacturing activity index rose three points to 61.3, a 14.3-year peak.
Markit’s final August manufacturing PMI came in at 54.7, a nine-month low, from 55.3 in July.
July construction spending rose just 0.1% for the month, following expectations of a 0.5% improvement after a 0.8% June fall.
Euro zone July producer prices were estimated 0.4% higher for the month, representing a 4.0% year-on-year increase.
A UK construction PMI dropped from 55.8 to 52.9.
Bank of England (BoE) governor Mark Carney told a parliamentary committee that he was prepared to stay past the time he had initially intended to leave his post, 30 June 2019.
The governor had planned to finish at the BoE following the UK’s official separation from the European (EU), so last night’s talk fostered views that UK-EU negotiations could extend past current deadlines.
Tonight in the US, July trade figures are keenly anticipated, together with the ISM’s business activity index for New York.
Three Federal Reserve officials are scheduled to speak publicly.
Companies due to report earnings or provide updates include Bayer, Ctrip.com International, EasyJet, IAG and Vera Bradley.
In overnight corporate news, Transocean announced a $US2.7B purchase of Ocean Rig, winding Ocean Rig shares ~12% higher, but sinking its own by 6.7%.
Vehicle manufacturers in the US reported mixed overall August sales, Ford’s rising 4.1% and Toyota’s falling 2%.
Tesla slowed 4% following an adverse analyst report.
A corporate advertisement hurt Nike due to a subsequent social media campaign to damage the company.
Meanwhile, Amazon traded for the first time with a $US1 trillion market cap.
The Australian market opens mid-week trade with little to inspire from overnight international trade, ahead of influential domestic and regional economic indicator reports, and as a swag of large-cap domestic stocks trades ex-dividend.
Locally today, the Australian Bureau of Statistics (ABS) reports June quarter GDP 11.30am AEST.
Pre-trade, AiG is due to publish its August services sector activity index.
Vehicle sales are also expected today.
Companies trading ex-dividend include IVC, IRE, MPL, QAN, RHC and TWE. Please see p3 for details.
Regionally today, Caixin is scheduled to release its China August services PMI 11.45am AEST.
A services PMI is also due for Japan, 10.30am AEST.
In overnight commodities trade, oil settled barely changed.
US gold futures fell.
Iron ore (China port, 62% Fe) swung higher.
LME copper and other key base metals were sold down.
The $A subsequently covered comparatively little ground after falling beneath US71.75c early yesterday evening.
Overseas Market Commentary
Swinging sentiment was evident across US equities markets overnight, but key indices closed near session highs.
Major European equities markets trended lower through to the last hour of trade.
In US data releases, the ISM’s August manufacturing activity index rose three points to 61.3, a 14.3-year peak.
Markit’s final August manufacturing PMI came in at 54.7, a nine-month low, from 55.3 in July.
July construction spending rose just 0.1% for the month, following expectations of a 0.5% improvement after a 0.8% June fall.
Euro zone July producer prices were estimated 0.4% higher for the month, representing a 4.0% year-on-year increase.
A UK construction PMI dropped from 55.8 to 52.9.
Bank of England (BoE) governor Mark Carney told a parliamentary committee that he was prepared to stay past the time he had initially intended to leave his post, 30 June 2019.
The governor had planned to finish at the BoE following the UK’s official separation from the European (EU), so last night’s talk fostered views that UK-EU negotiations could extend past current deadlines.
Tonight in the US, July trade figures are keenly anticipated, together with the ISM’s business activity index for New York.
Three Federal Reserve officials are scheduled to speak publicly.
Companies due to report earnings or provide updates include Bayer, Ctrip.com International, EasyJet, IAG and Vera Bradley.
In overnight corporate news, Transocean announced a $US2.7B purchase of Ocean Rig, winding Ocean Rig shares ~12% higher, but sinking its own by 6.7%.
Vehicle manufacturers in the US reported mixed overall August sales, Ford’s rising 4.1% and Toyota’s falling 2%.
Tesla slowed 4% following an adverse analyst report.
A corporate advertisement hurt Nike due to a subsequent social media campaign to damage the company.
Meanwhile, Amazon traded for the first time with a $US1 trillion market cap.