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Before making any investment decision, you should consult your adviser.
Market Opener – 29 Jun 2018
Local Markets Commentary
The Australian market opens Friday trade, on the last trading day of the financial year, on ultimately positive overnight US equities leads, but falls for most major commodities, ahead of key data out of China over the weekend, and the euro zone and UK tonight.
In overnight commodities trade, WTI crude remained in rally mode, but Brent’s rise proved moderate.
US gold futures extended this week’s falls.
Iron ore (China port, 62% Fe) turned to settle slightly lower.
LME copper fell. Nickel and aluminium turned lower.
The $A was contained within a relatively narrow range after trading at ~US 73.45c early yesterday evening.
Locally today, the Reserve Bank of Australia (RBA) releases May financial aggregates, including private sector credit, 11.30am AEST - one of several key reports ahead of next Tuesday’s policy meeting.
May new home sales, as calculated by the HIA, are also due, ~11am.
Post-trade, the RBA will update international reserves and foreign currency liquidity figures.
Regionally, Japan publishes May workforce statistics and industrial production, from 9.30am AEST.
Overseas Market Commentary
Choppy trade featured variously across major European and US equities markets overnight, as investors considered potential risks associated with:
• end-of-half year/quarter positioning through tonight;
• US-North Korea and US-Korea announcements;
• sharp divisional talk reported from the first of a two-day quarterly European Union (EU) summit; and
• surprise data.
Oil prices were pushed yet higher and tech stocks gained.
The US announced an official visit to North Korea, amid claims North Korea was not acting in the spirit of its claims that it would progress national denuclearisation.
In addition, a meeting between the US and Russian presidents was scheduled for 16 Julyin Helsinki, Finland.
Meanwhile at the EU summit, Italy retained a non-majority stance on immigration, threatening accord achieved between France, Germany, Greece and Spain.
A US final March quarter GDP reading disappointed, revised to 2% from previous 2.2% and 2.3% estimates. Consumer spending was cited as the major factor in the ultimate figure, due to its accounting for ~0.67% of economic activity, but all levels of government spending also reportedly declined.
Weekly new unemployment claims rose by 9000, following forecasts of a 2000 increase.
The Kansas City Fed manufacturing index fell three points to 38.
Earlier Germany June CPI was initially estimated at just 0.1% higher for the month, following 0.5% growth during May.
In the UK, Bank of England chief economist Andy Haldane publicly debunked suggestions central banks ought prioritise productivity targets.
Tonight in the US, a May personal income and spending report is sure to not go unnoticed. The June Chicago PMI and the University of Michigan’s final June consumer sentiment reading are also due.
Constellation Brands and Serco are among companies scheduled to report earnings or provide trading updates.
In overnight corporate news, US Federal Reserve stress tests resulted in a fail for Deutsche Bank and orders for Goldman Sachs and Morgan Stanley to bolster capital by curbing dividends and buy-backs.
Walgreens Boots Alliance exceeded quarterly expectations, but was pushed 9.5% lower, in part due to Amazon’s announcement that it was outlaying $US1B for PillPac, an online pharmacy.
Other pharmacy retailers fell.
Amazon gained 2.5%, also revealing a plan for other businesses to manage their own deliveries via Amazon.
Earlier, the UK’s BAE Systems was awarded a $US35B Australian Navy nine-strong frigate construction contract.
The Australian market opens Friday trade, on the last trading day of the financial year, on ultimately positive overnight US equities leads, but falls for most major commodities, ahead of key data out of China over the weekend, and the euro zone and UK tonight.
In overnight commodities trade, WTI crude remained in rally mode, but Brent’s rise proved moderate.
US gold futures extended this week’s falls.
Iron ore (China port, 62% Fe) turned to settle slightly lower.
LME copper fell. Nickel and aluminium turned lower.
The $A was contained within a relatively narrow range after trading at ~US 73.45c early yesterday evening.
Locally today, the Reserve Bank of Australia (RBA) releases May financial aggregates, including private sector credit, 11.30am AEST - one of several key reports ahead of next Tuesday’s policy meeting.
May new home sales, as calculated by the HIA, are also due, ~11am.
Post-trade, the RBA will update international reserves and foreign currency liquidity figures.
Regionally, Japan publishes May workforce statistics and industrial production, from 9.30am AEST.
Overseas Market Commentary
Choppy trade featured variously across major European and US equities markets overnight, as investors considered potential risks associated with:
• end-of-half year/quarter positioning through tonight;
• US-North Korea and US-Korea announcements;
• sharp divisional talk reported from the first of a two-day quarterly European Union (EU) summit; and
• surprise data.
Oil prices were pushed yet higher and tech stocks gained.
The US announced an official visit to North Korea, amid claims North Korea was not acting in the spirit of its claims that it would progress national denuclearisation.
In addition, a meeting between the US and Russian presidents was scheduled for 16 Julyin Helsinki, Finland.
Meanwhile at the EU summit, Italy retained a non-majority stance on immigration, threatening accord achieved between France, Germany, Greece and Spain.
A US final March quarter GDP reading disappointed, revised to 2% from previous 2.2% and 2.3% estimates. Consumer spending was cited as the major factor in the ultimate figure, due to its accounting for ~0.67% of economic activity, but all levels of government spending also reportedly declined.
Weekly new unemployment claims rose by 9000, following forecasts of a 2000 increase.
The Kansas City Fed manufacturing index fell three points to 38.
Earlier Germany June CPI was initially estimated at just 0.1% higher for the month, following 0.5% growth during May.
In the UK, Bank of England chief economist Andy Haldane publicly debunked suggestions central banks ought prioritise productivity targets.
Tonight in the US, a May personal income and spending report is sure to not go unnoticed. The June Chicago PMI and the University of Michigan’s final June consumer sentiment reading are also due.
Constellation Brands and Serco are among companies scheduled to report earnings or provide trading updates.
In overnight corporate news, US Federal Reserve stress tests resulted in a fail for Deutsche Bank and orders for Goldman Sachs and Morgan Stanley to bolster capital by curbing dividends and buy-backs.
Walgreens Boots Alliance exceeded quarterly expectations, but was pushed 9.5% lower, in part due to Amazon’s announcement that it was outlaying $US1B for PillPac, an online pharmacy.
Other pharmacy retailers fell.
Amazon gained 2.5%, also revealing a plan for other businesses to manage their own deliveries via Amazon.
Earlier, the UK’s BAE Systems was awarded a $US35B Australian Navy nine-strong frigate construction contract.