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Market Opener – 03 Apr 2018
The Australian market commences June quarter trade ahead of a Reserve Bank of Australia (RBA) policy meeting and economic data releases, and following comprehensive overnight falls across US equities markets.
In overnight commodities trade, US gold futures were pushed decisively higher. Oil fell.
Iron ore (China port, 62% Fe) extended a rally which commenced late Thursday.
The LME remained closed.
The $A reached appreciated overnight Thursday after trading at US76.75c early Thursdayevening AEDST last week, but has since fallen to ~US76.60c in risk-averse trade .
Locally today, the RBA will release a post-policy meeting statement 2.30pm AEDST.
Pre-trade, a March manufacturing activity index has been reported at a record 63.1, following 57.5 for February.
A weekly consumer sentiment reading is also expected by some pre-trade.
The monthly TD Securities-Melbourne Institute inflation gauge report will be published 11am.
The ANZ releases monthly job advertisements 11.30am.
Overseas Market Commentary
US equities markets opened almoststeady but then headed lower throughout overnight trade.
Influential economic data was estimated weaker than anticipated, oil fell, thetech sector was again generally out of favour, and select major stocks draggedon indices following negative commentary.
The major influence on the risk-off trade appeared to be increased import taxesannounced by China on some US foods, wine and scrap aluminium.
This came as official data out of China also revealed China had effectivelyceased exports of petroleum products, coal and other key supplies to NorthKorea in the lead-up to the recent visit to China by North Korea’s leader KimJong Un.
In addition, on Sunday, messages from the US president appeared to place NorthAmerican trade negotiations in jeopardy.
Meanwhile, major European equities markets remained closed due to Easter publicholidays.
Among US data releases, ISM’s March manufacturing index came in at 59.3, 1.5points below the February reading, but nonetheless remaining robust.
February construction spending was reported just 0.1% higher for the month, buton a year-on-year basis represented a 3% increase.
Tonight in the US, an ISM New York business activity index, an economicoptimism reading and March vehicle sales are due.
In overnight corporate news, Tesla suffered an ~4% ultimate fall on ongoingfallout related to driverless vehicles, but intra-session fell greater than 7%.
Amazon also fell ~4% on continuing threatening talk from the US president, inpart alleging unfair advantage related to postal services.
US retailer Walmart lost ~3% o reports it was considering acquiring majorhealth insurer Humana.