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Before making any investment decision, you should consult your adviser.
Market Opener – 13 Jul 2018
Local Markets Commentary
The Australian market opens Friday trade on generally improved overnight international equities and commodities sentiment, ahead of China’s latest trade figures.
Post-ASX trade yesterday, China reported a 1.1% year-on-year rise in foreign direct investment (FDI), against a 1.3% increase in May.
China’s June trade balance is scheduled for release today at 1pm AEST.
In overnight commodities trade, WTI crude continued lower, but Brent swung to a gain.
US gold futures turned a little higher.
Iron ore (China port, 62% Fe) also swung higher.
LME copper and nickel traded likewise, but aluminium was pushed yet lower.
The $A reached US74.0c after rising to ~US73.80c early yesterday evening.
Locally today, comprehensive May lending finance figures are expected from the Australian Bureau of Statistics.
Overseas Market Commentary
Major European and US equities markets bounced overnight, mostly closing at or near session highs, the $US remaining strong against traditional safe havens - Japan’s yen and Switzerland’s franc.
The industrial sector returned to favour in general, and high-profile stocks, including Amazon, Facebook and Microsoft, were pushed to new record peaks.
At the conclusion of the NATO leaders’ summit, the US president championed members’ defence spending, which was estimated would increase by ~2%.
Plenty of further international commentary is anticipated from the US president over the next several days.
The president is in the UK for the weekend. Monday, he is scheduled to meet with Russia’s president.
In overnight data releases, US June CPI was estimated to have grown 0.1% during the month and 2.9% year-on-year, the highest rate in six years.
Earlier in Germany, June CPI growth was confirmed at 0.1% for the month and 2.1% year-on-year.
Euro zone May industrial production rose 1.3% for the month and 2.4% year-on-year, following a respective 0.8% fall and 1.7% year-on-year rise in April.
European Central Bank June policy meeting minutes revealed general agreement both on concluding the bond purchase program at year’s end and continued caution regarding rates change.
The European Commission in the meantime raised its euro zone 2018 and 2019 CPI forecasts to 1.7%.
Meanwhile in the UK, the government released theUK-European Union (EU) separation plan the PM had delivered to her cabinet Friday last week.
Tonight in the US, June import and export prices and an initial July University of Michigan consumer sentiment reading are anticipated.
In addition, the Federal Reserve is due to provide Congress with a policy report.
Companies scheduled to report earnings or provide trading updates include Citigroup, Hays, JPMorgan Chase, PNC Financial Services and Wells Fargo.
In overnight corporate news, Broadcom revealed it would pay $US18.9B cash for CA Technologies. Broadcom dropped 14% following news of the 20% premium price, but CA appreciated 19%.
Costco Wholesale appeared to please, with a 9.7% rise in June same-store sales, supported by US sales which improved 10.8%.
Delta Air Lines boosted its quarterly dividend 15% while predicting full-year earnings would be sufficiently impacted by higher fuel costs to undershoot analyst expectations.
Twitter offered detail on how purging suspicious accounts would affect the number of followers for remaining account holders, including for high-profile clients.
Post-US Wednesday trade, Comcast raised its bid for Sky Plc to ~£26B, in response to Twenty-First Century Fox’s revised ~£24.5B offer for full ownership.
Comcast and Walt Disney continue to chase Twenty-First Century Fox’s entertainment assets.
The Australian market opens Friday trade on generally improved overnight international equities and commodities sentiment, ahead of China’s latest trade figures.
Post-ASX trade yesterday, China reported a 1.1% year-on-year rise in foreign direct investment (FDI), against a 1.3% increase in May.
China’s June trade balance is scheduled for release today at 1pm AEST.
In overnight commodities trade, WTI crude continued lower, but Brent swung to a gain.
US gold futures turned a little higher.
Iron ore (China port, 62% Fe) also swung higher.
LME copper and nickel traded likewise, but aluminium was pushed yet lower.
The $A reached US74.0c after rising to ~US73.80c early yesterday evening.
Locally today, comprehensive May lending finance figures are expected from the Australian Bureau of Statistics.
Overseas Market Commentary
Major European and US equities markets bounced overnight, mostly closing at or near session highs, the $US remaining strong against traditional safe havens - Japan’s yen and Switzerland’s franc.
The industrial sector returned to favour in general, and high-profile stocks, including Amazon, Facebook and Microsoft, were pushed to new record peaks.
At the conclusion of the NATO leaders’ summit, the US president championed members’ defence spending, which was estimated would increase by ~2%.
Plenty of further international commentary is anticipated from the US president over the next several days.
The president is in the UK for the weekend. Monday, he is scheduled to meet with Russia’s president.
In overnight data releases, US June CPI was estimated to have grown 0.1% during the month and 2.9% year-on-year, the highest rate in six years.
Earlier in Germany, June CPI growth was confirmed at 0.1% for the month and 2.1% year-on-year.
Euro zone May industrial production rose 1.3% for the month and 2.4% year-on-year, following a respective 0.8% fall and 1.7% year-on-year rise in April.
European Central Bank June policy meeting minutes revealed general agreement both on concluding the bond purchase program at year’s end and continued caution regarding rates change.
The European Commission in the meantime raised its euro zone 2018 and 2019 CPI forecasts to 1.7%.
Meanwhile in the UK, the government released theUK-European Union (EU) separation plan the PM had delivered to her cabinet Friday last week.
Tonight in the US, June import and export prices and an initial July University of Michigan consumer sentiment reading are anticipated.
In addition, the Federal Reserve is due to provide Congress with a policy report.
Companies scheduled to report earnings or provide trading updates include Citigroup, Hays, JPMorgan Chase, PNC Financial Services and Wells Fargo.
In overnight corporate news, Broadcom revealed it would pay $US18.9B cash for CA Technologies. Broadcom dropped 14% following news of the 20% premium price, but CA appreciated 19%.
Costco Wholesale appeared to please, with a 9.7% rise in June same-store sales, supported by US sales which improved 10.8%.
Delta Air Lines boosted its quarterly dividend 15% while predicting full-year earnings would be sufficiently impacted by higher fuel costs to undershoot analyst expectations.
Twitter offered detail on how purging suspicious accounts would affect the number of followers for remaining account holders, including for high-profile clients.
Post-US Wednesday trade, Comcast raised its bid for Sky Plc to ~£26B, in response to Twenty-First Century Fox’s revised ~£24.5B offer for full ownership.
Comcast and Walt Disney continue to chase Twenty-First Century Fox’s entertainment assets.