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State One Market Opener - 07 Nov 2016

Local Markets Commentary

The Australian market commences a new week’s trade ahead of new regional data and amid heightened speculation surrounding the 8 November US presidential poll (results possibly ~3pm Wednesday AEDST).

Overnight, the FBI has announced it has not found ‘any evidence of criminality’ in an initial investigation into additional Hillary Clinton Secretary of State emails that began last week.

Further, it retains its ‘careless-but-not-criminal’ view from the previous formal inquiry.

The $US has since appreciated significantly.

Regionally today, China is expected to reveal October foreign exchange reserves.

The Bank of Japan releases minutes from its September policy meeting 10.50am AEDST. Japan’s September workforce statistics are also due.

In overnight Friday commodities trade, US gold futures settled slightly higher. Oil continued lower and copper and iron ore stronger.

The $A remained within a narrow range after trading at ~US76.80c early Friday evening.

Locally today, an October construction sector activity index, job advertisements report and forex reserves are due.

WBC full-year results have been lodged pre-trade.

Two companies are also scheduled to list, including Inghams which completed an almost $600M IPO.

Overseas Market Commentary

Major European and US equities markets settled yet lower overnight Friday, but the NASDAQ and S&P500 notably fell only in late trade.

The US October employment report was considered sufficiently robust to support expectations of a near-term rate rise.

The unemployment rate edged 0.1% lower to 4.9% and 161,000 jobs were created.

Average hourly wages increased 0.4% (US10c) for the month and 2.8% year-on-year.

The September trade deficit came in 9.9% lower at $US36.4B, supported by a 0.6% increase in the value of exports, and against expectations of $US37.8B. Imports dropped 1.3%.

The Atlanta Fed in the meantime raised its December quarter US GDP growth to 3.1%, from 2.3%.

Tonight in the US, mortgage foreclosures and a Federal Reserve market conditions index are due. A consumer credit update is anticipated post-US trade.

HSBC, Isuzu, News Corp (post-US trade), Nissan Motor, Sysco and Yamaha are scheduled to report earnings and/or provide trading updates today and tonight.

Overnight Friday, Berkshire Hathaway reported a 24% fall in September quarter profit (to $US7.2B), and revealed it had retained 10% of Wells Fargo.

7/11/2016 6:52:40 AM

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