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Market Opener – 12 Dec 2018
Local Markets Commentary
The Australian market opens mid-week trade with new data out of China and Japan early yesterday evening and amid a swarm of international considerations.
In mixed overnight commodities trade, oil turned higher.
US (February) gold futures settled slightly lower.
Iron ore (China port 62% Fe) declined for a fourth consecutive session.
LME copper swung higher and rallied.
The $A was pushed about within a relatively narrow range after trading at US72.00c early yesterday evening.
Locally today, Westpac and the Melbourne Institute publish their monthly consumer sentiment report 10.30am AEDT.
The Australian Bureau of Statistics publishes October lending figures 11.30am.
Post-ASX trade yesterday, China’s November new lending was reported at 1250B yuan, against 697B yuan in October.
China also revealed November vehicle sales had tumbled 13.9% year-on-year, following an 11.7% drop in October.
In addition, post-ASX trade yesterday, Japan reported a 16.8% year-on-year drop in November machine tool orders, following a 0.7% October fall.
Overseas Market Commentary
Major European and US equities markets were pushed and pulled overnight by:
• confirmation of a high-level US-China trade-focused teleconference late Monday;
• new US presidential threats to not sign off on new government funding next week;
• a financial crisis warning from the immediate former chair of the US Federal Reserve;
• claims France’s tax cut timetable and wages concessions, following cost-of-living protests, would push the nation’s deficit beyond the European Commission 3% GDP cap;
• European Union public intransigence on renewing separation talks with the UK;
• reports China had detained a Canadian citizen, in retaliation for the arrest last week in Canada of Huawei’s CFO, also the daughter of the company’s founder; and
• a deadly attack on civilians near a Christmas market in France.
European indices opened higher and mostly continued to rally on early US-China trade optimism, including a reported, repeat offer from China of vehicle import tax cuts.
Among data releases, average earnings in the UK were reported to have grown 3.3% in the three months to 31 October.
ZEW’s December economic sentiment index for traditional euro zone powerhouse Germany improved from -24.1 to -17.5.
The current conditions component dropped to 45.3 from 58.2, however.
US November producer prices were estimated 2.5% higher year-on-year, against 2.9% at the end of October. For the month, prices rose 0.1%
A small business optimism index fell 2.6 to a nonetheless strong 104.8.
Tonight in the US, November CPI, monthly treasury budget figures and weekly mortgage applications are due.
Elsewhere, the heads of the European Commission (EC) and Italy meet to discuss possible changes to Italy’s proposed budget, deemed non-compliant with region-wide regulations.
The Australian market opens mid-week trade with new data out of China and Japan early yesterday evening and amid a swarm of international considerations.
In mixed overnight commodities trade, oil turned higher.
US (February) gold futures settled slightly lower.
Iron ore (China port 62% Fe) declined for a fourth consecutive session.
LME copper swung higher and rallied.
The $A was pushed about within a relatively narrow range after trading at US72.00c early yesterday evening.
Locally today, Westpac and the Melbourne Institute publish their monthly consumer sentiment report 10.30am AEDT.
The Australian Bureau of Statistics publishes October lending figures 11.30am.
Post-ASX trade yesterday, China’s November new lending was reported at 1250B yuan, against 697B yuan in October.
China also revealed November vehicle sales had tumbled 13.9% year-on-year, following an 11.7% drop in October.
In addition, post-ASX trade yesterday, Japan reported a 16.8% year-on-year drop in November machine tool orders, following a 0.7% October fall.
Overseas Market Commentary
Major European and US equities markets were pushed and pulled overnight by:
• confirmation of a high-level US-China trade-focused teleconference late Monday;
• new US presidential threats to not sign off on new government funding next week;
• a financial crisis warning from the immediate former chair of the US Federal Reserve;
• claims France’s tax cut timetable and wages concessions, following cost-of-living protests, would push the nation’s deficit beyond the European Commission 3% GDP cap;
• European Union public intransigence on renewing separation talks with the UK;
• reports China had detained a Canadian citizen, in retaliation for the arrest last week in Canada of Huawei’s CFO, also the daughter of the company’s founder; and
• a deadly attack on civilians near a Christmas market in France.
European indices opened higher and mostly continued to rally on early US-China trade optimism, including a reported, repeat offer from China of vehicle import tax cuts.
Among data releases, average earnings in the UK were reported to have grown 3.3% in the three months to 31 October.
ZEW’s December economic sentiment index for traditional euro zone powerhouse Germany improved from -24.1 to -17.5.
The current conditions component dropped to 45.3 from 58.2, however.
US November producer prices were estimated 2.5% higher year-on-year, against 2.9% at the end of October. For the month, prices rose 0.1%
A small business optimism index fell 2.6 to a nonetheless strong 104.8.
Tonight in the US, November CPI, monthly treasury budget figures and weekly mortgage applications are due.
Elsewhere, the heads of the European Commission (EC) and Italy meet to discuss possible changes to Italy’s proposed budget, deemed non-compliant with region-wide regulations.