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Market Opener – 28 Mar 2019
Local Markets Commentary
The Australian market opens for the second last trading day of the March quarter with US-China trade talk anticipation, after weaker international economics again adversely influenced overnight equities sentiment.
In addition, the UK parliament delivered nil majority votes on multiple alternatives to the negotiated UK-EU separation arrangements, and the PM offered to step down should the negotiated deal be approved during another sitting.
Price falls for most key commodities also fell.
The new US-China trade negotiations are scheduled to commence in Beijing later today and to continue through tomorrow.
During this time, China vice premier Liu He is expected to meet with US treasury secretary Steven Mnuchin and trade representative Robert Lighthizer.
In overnight commodities trade, oil swung lower, Brent crude only slightly.
US gold futures (April) continued to fall.
Iron ore (China port, 62% Fe) also extended this week’s decline,but just slightly so.
LME copper, nickel and aluminium turned to settle lower.
The $A was pushed below US70.90c after falling to ~US71.05 cearly yesterday evening.
Overseas Markets Commentary
Marked swings featured for the second time this week in overnight major European and US equities markets trade.
European Central Bank (ECB) president Mario Draghi underscored concerns surrounding euro zone economic health,speaking publicly of a ‘more persistent deterioration of external demand’, specifically citing ‘weak’ international trade for manufacturing industry woes.
Mr Draghi, however, appeared keen to point out ‘a serious slump’was not inevitable.
In Germany, a 10-year bond auction subsequently produced an average -0.05% yield, against 0.12% for a similar late-February auction, the new sale producing a first negative yield result since 2016.
Just hours earlier, China had reported a 14% year-on-year drop in January February industrial profits.
Earlier than this yesterday, Reserve Bank of New Zealand post policy meeting comments included a likely rates fall.
In the UK overnight, PM Theresa May reportedly told MPs she would step down from her leadership role should the negotiated UK-European Union (EU) separation agreement be approved by parliament’s House of Commons.
Mrs May also told her party colleagues they were free to vote any which way of up to alternative proposals to be considered overnight.
As expected, the votes have this morning (AEDT) delivered no majority for any one proposal.
In the meantime, the US president, in response to questioning, didnot rule out US action to force Russia to withdraw a new andreportedly growing military presence from Venezuela.
The Australian market opens for the second last trading day of the March quarter with US-China trade talk anticipation, after weaker international economics again adversely influenced overnight equities sentiment.
In addition, the UK parliament delivered nil majority votes on multiple alternatives to the negotiated UK-EU separation arrangements, and the PM offered to step down should the negotiated deal be approved during another sitting.
Price falls for most key commodities also fell.
The new US-China trade negotiations are scheduled to commence in Beijing later today and to continue through tomorrow.
During this time, China vice premier Liu He is expected to meet with US treasury secretary Steven Mnuchin and trade representative Robert Lighthizer.
In overnight commodities trade, oil swung lower, Brent crude only slightly.
US gold futures (April) continued to fall.
Iron ore (China port, 62% Fe) also extended this week’s decline,but just slightly so.
LME copper, nickel and aluminium turned to settle lower.
The $A was pushed below US70.90c after falling to ~US71.05 cearly yesterday evening.
Overseas Markets Commentary
Marked swings featured for the second time this week in overnight major European and US equities markets trade.
European Central Bank (ECB) president Mario Draghi underscored concerns surrounding euro zone economic health,speaking publicly of a ‘more persistent deterioration of external demand’, specifically citing ‘weak’ international trade for manufacturing industry woes.
Mr Draghi, however, appeared keen to point out ‘a serious slump’was not inevitable.
In Germany, a 10-year bond auction subsequently produced an average -0.05% yield, against 0.12% for a similar late-February auction, the new sale producing a first negative yield result since 2016.
Just hours earlier, China had reported a 14% year-on-year drop in January February industrial profits.
Earlier than this yesterday, Reserve Bank of New Zealand post policy meeting comments included a likely rates fall.
In the UK overnight, PM Theresa May reportedly told MPs she would step down from her leadership role should the negotiated UK-European Union (EU) separation agreement be approved by parliament’s House of Commons.
Mrs May also told her party colleagues they were free to vote any which way of up to alternative proposals to be considered overnight.
As expected, the votes have this morning (AEDT) delivered no majority for any one proposal.
In the meantime, the US president, in response to questioning, didnot rule out US action to force Russia to withdraw a new andreportedly growing military presence from Venezuela.