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Before making any investment decision, you should consult your adviser.
Market Opener – 23 Jan 2019
Local Markets Commentary
The Australian market opens mid-week trade on broadly negative overnight international equities and key commodities trade.
In commodities trade, oil and iron ore (China port 62% Fe fines) turned and fell.
US gold futures (February) settled slightly higher.
LME copper and nickel were pushed lower. Aluminium swung higher.
The $A slipped to ~US71.20c after trading at US71.30c early yesterday evening.
Locally today, a December skilled vacancies report and Westpac and the Melbourne Institute’s December leading index are due.
Regionally, New Zealand has this morning reported 0.1% December quarter CPI growth, and 1.9% for 2018.
In Japan, the Bank of Japan reveals outcomes from its policy meeting 2pm AEDT.
The annual World Economic Forum (WEF) continues in Davos, Switzerland through Friday.
Overseas Market Commentary
Major European and US equities markets opened lower overnight, impacted by dour data, corporate pessimism which is increasingly viewed as a feature of the late-2018 earnings and update reporting season, and new doubts regarding likely near-term outcomes from US-China trade talks.
US equities trade reacted for the first time to China’s growth figures, released Monday, to early-week economic growth forecasts from the International Monetary Fund (IMF) and the United Nations, and a series of warnings regarding the domestic growth impact of the partial US government services shutdown.
In addition, a media report claimed the US administration cancelled proposed China-US talks scheduled for this week, ahead of the planned 30 January official resumption of high-level negotiations.
Further, the US state secretary bemoaned China’s regional and domestic behaviour in a video address to the World Economic Forum, at the same time promoting optimism regarding the ultimate outcomes for US-China trade.
Another media report, in the meantime, asserted the US was ready to formally request the extradition of a Huawei executive, detained in Canada, reportedly at the request of the US.
In overnight data releases, a ZEW economic conditions index for Germany plummeted to 27.6 from 45.3.
A euro zone ZEW economic expectations index improved by 0.1 to -20.9.
The UK’s November quarter earnings were in the meantime calculated to have risen 3.4% year-on-year, after a 3.3% increase for the three months to 31 October.
Across the Atlantic, a US Philadelphia region non-manufacturing index concerned, fallingfurther to -3.9. National services sector activity has traditionally contributed ~67% of US GDP growth.
Meanwhile, US December existing home sales tumbled 6.4% for the month, and 10.3% year-on-year.
Tonight in the US, a regional manufacturing index and November house price report are scheduled for release.
Companies expected to report earnings for the December quarter, or provide a trading update, include Abbott Labs, Antofagasta, Burberry, Comcast, Ford Motor, Kimberly-Clark, Procter & Gamble, Texas Instruments and United Technologies.
In overnight corporate news, eBay benefited from Elliott Management’s revelation of a 4% holding, coupled with a push for the online retailer to sell some assets.
Swiss banking group UBS December quarter profit disappointed, in a large part due to a 22% loss for the wealth management division, which suffered ~$US8B worth of outflow.
UK company Dyson announced it would relocate its headquarters to Singapore, regional to where all Dyson products are manufactured, and where it is constructing a new facility for proposed electric vehicle production.
US petroleum services specialist Halliburton reported a $1.7B December quarter profit, supported by North America revenue. Completion-related revenue and sales appeared to weigh, however.
Master card in the meantime received a €570M penalty for breaching European Union competition regulations.
The Australian market opens mid-week trade on broadly negative overnight international equities and key commodities trade.
In commodities trade, oil and iron ore (China port 62% Fe fines) turned and fell.
US gold futures (February) settled slightly higher.
LME copper and nickel were pushed lower. Aluminium swung higher.
The $A slipped to ~US71.20c after trading at US71.30c early yesterday evening.
Locally today, a December skilled vacancies report and Westpac and the Melbourne Institute’s December leading index are due.
Regionally, New Zealand has this morning reported 0.1% December quarter CPI growth, and 1.9% for 2018.
In Japan, the Bank of Japan reveals outcomes from its policy meeting 2pm AEDT.
The annual World Economic Forum (WEF) continues in Davos, Switzerland through Friday.
Overseas Market Commentary
Major European and US equities markets opened lower overnight, impacted by dour data, corporate pessimism which is increasingly viewed as a feature of the late-2018 earnings and update reporting season, and new doubts regarding likely near-term outcomes from US-China trade talks.
US equities trade reacted for the first time to China’s growth figures, released Monday, to early-week economic growth forecasts from the International Monetary Fund (IMF) and the United Nations, and a series of warnings regarding the domestic growth impact of the partial US government services shutdown.
In addition, a media report claimed the US administration cancelled proposed China-US talks scheduled for this week, ahead of the planned 30 January official resumption of high-level negotiations.
Further, the US state secretary bemoaned China’s regional and domestic behaviour in a video address to the World Economic Forum, at the same time promoting optimism regarding the ultimate outcomes for US-China trade.
Another media report, in the meantime, asserted the US was ready to formally request the extradition of a Huawei executive, detained in Canada, reportedly at the request of the US.
In overnight data releases, a ZEW economic conditions index for Germany plummeted to 27.6 from 45.3.
A euro zone ZEW economic expectations index improved by 0.1 to -20.9.
The UK’s November quarter earnings were in the meantime calculated to have risen 3.4% year-on-year, after a 3.3% increase for the three months to 31 October.
Across the Atlantic, a US Philadelphia region non-manufacturing index concerned, fallingfurther to -3.9. National services sector activity has traditionally contributed ~67% of US GDP growth.
Meanwhile, US December existing home sales tumbled 6.4% for the month, and 10.3% year-on-year.
Tonight in the US, a regional manufacturing index and November house price report are scheduled for release.
Companies expected to report earnings for the December quarter, or provide a trading update, include Abbott Labs, Antofagasta, Burberry, Comcast, Ford Motor, Kimberly-Clark, Procter & Gamble, Texas Instruments and United Technologies.
In overnight corporate news, eBay benefited from Elliott Management’s revelation of a 4% holding, coupled with a push for the online retailer to sell some assets.
Swiss banking group UBS December quarter profit disappointed, in a large part due to a 22% loss for the wealth management division, which suffered ~$US8B worth of outflow.
UK company Dyson announced it would relocate its headquarters to Singapore, regional to where all Dyson products are manufactured, and where it is constructing a new facility for proposed electric vehicle production.
US petroleum services specialist Halliburton reported a $1.7B December quarter profit, supported by North America revenue. Completion-related revenue and sales appeared to weigh, however.
Master card in the meantime received a €570M penalty for breaching European Union competition regulations.