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State One Market Opener - 10 Nov 2016

Local Markets Commentary

The Australian market opens on positive international equities leads and mostly higher key commodities, amid a plethora of commentary and predictions out of a resounding US Republican party election victory.

In overnight commodities trade, US gold futures settled slightly lower and oil higher. Iron ore and copper extended their rallying.

The $A remained supported after trading at ~US76.35c – US76.55c early yesterday evening.

Locally today, housing finance and consumer inflation expectations reports are due.

This morning the Reserve Bank of New Zealand has cut its cash rate by 0.25% to 1.75%, a record low.

Overseas Market Commentary

US equities markets rallied at the conclusion of the US election process, a US conservative victory declared across both houses of parliament, in addition to the presidential vote.

US sentiment appeared to drag major European markets to positive settlements.

At least one major investment house advised clients to sit and wait.

In overnight data releases, the UK’s September trade deficit was reported at £5.2B, from £3.8B in August, imports increasing £1.2B and exports falling £0.2B.

The September quarter deficit came in at £11B, from £12.6B at the end of June.

US September wholesale inventories were finalised at a 0.1% gain, after an initial estimate of a 0.2% rise.

Weekly mortgage applications fell 1.2%.

Tonight in the US, weekly new unemployment claims are due, together with an October budget statement.

AstraZeneca, ITV, Macy’s, Noble Group, Petrobras, Siemens, Singapore Telecommunications (Optus owner) and Walt Disney are scheduled to report today and tonight.

Overnight, UK supermarket group Sainsbury reported a 10.1% drop in interim profit, in part due to increase competition from international operators.

General Motors announced shift cuts at two US manufacturing sites, due to reduced domestic vehicle demand.

Tomorrow is Veterans Day in the US. Bond markets will be closed but equities will trade as normal.

10/11/2016 6:53:26 AM

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