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Before making any investment decision, you should consult your adviser.
Market Opener – 05 Feb 2019
Local Markets Commentary
The Australian market commences today’s trade amid a plethora of analysis of the finance sector royal commission report, ahead of a Reserve Bank of Australia policy statement and influential domestic data releases today, plus key economic indicator reports tonight out of the US and euro zone.
Overnight US equities trade leads are positive, but international commodities leads mixed.
Locally, Reserve Bank of Australia (RBA) is holding its first policy meeting of the year today and will announce outcomes and update its outlook in a statement due for release 2.30pm AEDT.
By then Australian Bureau of Statistics will have released December trade and retail sales figures, each report due at 11.30am AEDT.
Pre-trade, AiG will publish its January services sector PMI and ANZ and Roy Morgan their weekly consumer sentiment report.
A new vehicle sales update is also expected today.
In overnight commodities trade, oil swung lower.
US gold futures (April) continued so.
LME copper turned higher, aluminium rallied, and nickel extended its current run higher with a sharp increase.
The $A headed below US72.30c, after trading at ~US72.35c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets mostly headed lower in early trade, but key US indices settled at or near session highs.
Among US data releases, November factory orders disappointed, falling 0.6% following a 2.1% October drop, and against forecasts of a 0.2% improvement.
ISM’s New York January business activity index was estimated at a robust 63.4, but nonetheless, two points lower than for December.
In the euro zone, December producer prices fell 0.8% for the month, following a 0.3% November decline.
Year-on-year, prices came in 3% higher, against 4% at the end of November.
A UK construction PMI fell to a 10-month low of 50.6, from 52.8 in December 2018.
Meanwhile, a United Nations (UN) agency review of the likely impacts of a threatened US rise in taxes on China imports 1 March concluded widespread adverse economic and currency swing impacts, but also benefits to some major trading regions including across the European Union.
Tonight in the US, ISM’s January services sector activity index is keenly anticipated.
December trade figures are also expected, together with an economic optimism index.
Companies scheduled to report earnings later today or tonight include: Archer Daniels Midland, BP, Estee Lauder, Genworth Financial, Itoshu, Janus Henderson Group, Mitsubishi Corp, Ocado, Snap, Softbank, Suzuki Motor, Viacom, Walt Disney and Yamaha Corp.
In overnight corporate news, Janus Henderson Group announced bond manager Bill Gross was retiring.
ConocoPhillips benefited from a buy recommendation.
Alphabet (owns Google) has reported post-US trade. Revenue exceeded expectations, but costs appear to be weighing.
The Australian market commences today’s trade amid a plethora of analysis of the finance sector royal commission report, ahead of a Reserve Bank of Australia policy statement and influential domestic data releases today, plus key economic indicator reports tonight out of the US and euro zone.
Overnight US equities trade leads are positive, but international commodities leads mixed.
Locally, Reserve Bank of Australia (RBA) is holding its first policy meeting of the year today and will announce outcomes and update its outlook in a statement due for release 2.30pm AEDT.
By then Australian Bureau of Statistics will have released December trade and retail sales figures, each report due at 11.30am AEDT.
Pre-trade, AiG will publish its January services sector PMI and ANZ and Roy Morgan their weekly consumer sentiment report.
A new vehicle sales update is also expected today.
In overnight commodities trade, oil swung lower.
US gold futures (April) continued so.
LME copper turned higher, aluminium rallied, and nickel extended its current run higher with a sharp increase.
The $A headed below US72.30c, after trading at ~US72.35c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets mostly headed lower in early trade, but key US indices settled at or near session highs.
Among US data releases, November factory orders disappointed, falling 0.6% following a 2.1% October drop, and against forecasts of a 0.2% improvement.
ISM’s New York January business activity index was estimated at a robust 63.4, but nonetheless, two points lower than for December.
In the euro zone, December producer prices fell 0.8% for the month, following a 0.3% November decline.
Year-on-year, prices came in 3% higher, against 4% at the end of November.
A UK construction PMI fell to a 10-month low of 50.6, from 52.8 in December 2018.
Meanwhile, a United Nations (UN) agency review of the likely impacts of a threatened US rise in taxes on China imports 1 March concluded widespread adverse economic and currency swing impacts, but also benefits to some major trading regions including across the European Union.
Tonight in the US, ISM’s January services sector activity index is keenly anticipated.
December trade figures are also expected, together with an economic optimism index.
Companies scheduled to report earnings later today or tonight include: Archer Daniels Midland, BP, Estee Lauder, Genworth Financial, Itoshu, Janus Henderson Group, Mitsubishi Corp, Ocado, Snap, Softbank, Suzuki Motor, Viacom, Walt Disney and Yamaha Corp.
In overnight corporate news, Janus Henderson Group announced bond manager Bill Gross was retiring.
ConocoPhillips benefited from a buy recommendation.
Alphabet (owns Google) has reported post-US trade. Revenue exceeded expectations, but costs appear to be weighing.