Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 31 Jan 2019
Local Markets Commentary
The Australian market opens the last trading session of the month ahead of influential regional and domestic data, and following positive overnight US equities and key commodities trade.
In overnight commodities trade, oil continued higher.
US gold futures (April) settled almost flat, but added ~$US6.00 to this week’s gains in post-settlement electronic trade.
Iron ore (China port 62% Fe fines) was propelled sharply higher, in a further response to a major Brazil supply disruption.
LME copper, nickel and aluminium also rallied.
The $A appreciated sharply, beyond US72.50c, after trading at ~US71.95c early yesterday evening.
Regionally today, China is expected to publish January manufacturing and service sector PMIs midday AEDT.
Locally, the Reserve Bank of Australia’s (RBA) financial aggregates report, including private sector spending, is due 11.30am AEDT.
The Australian Bureau of Statistics (ABS) is expected to publish export and import price indices at the same time, also 11.30am.
In addition, a deluge of December quarter reports will be lodged ahead of tonight’s end-of-month.
Overseas Market Commentary
US equities markets rallied from outset overnight amid some positive large-cap stocks sentiment, key indices later benefiting further from US Federal Reserve post-policy meeting statements.
Germany’s DAX 30 opened lower and chopped markedly, however, following further disappointing data, including a preliminary January CPI estimate, plus a reported Wirecard scandal.
The FTSE 100 appeared to benefit mostly from a weaker British pound.
The US Federal Reserve referred to ‘economic and financial developments’ when indicating little likelihood of near-term rate rises and perhaps a stay on reducing the bank’s balance sheet.
In a media conference Federal Reserve chair Jerome Powell referred to a ‘weakening’ of the case for rate rises.
In the bank’s formal statement, US economic growth was no longer described as ‘strong’ but as ‘solid’.
Two days of scheduled face-to-face US-China trade talks commenced in Washington in the meantime.
In the UK, December consumer credit dropped from November’s £958M to £687M, but mortgage lending rose to £4.11B from £3.63B.
In overnight data releases, Germany’s initial January CPI reading came in at 0.8% deflation for the month, following 0.1% December growth.
Year-on-year, inflation growth came in at 1.4%, against 1.7% for December.
December import prices fell 1.3% for the month following a 1% November decline.
Year-on-year, prices were 1.6% higher, against November’s 3.1% rise.
Euro zone January business, economic and industrial confidence indices fell, but consumer confidence improved from -8.3 to -7.9.
In the US, a private sector January employment report was viewed as a generally positive indicator for tomorrow night’s overall January jobs figures, with 213,000 new jobs, following forecasts of 180,000 - 185,000, and against December’s 263,000.
December pending home sales fell for the third consecutive month, his time by 2.2% following November’s 0.9% decline.
Pending sales tallied the least in more than four years, representing a 9.8% year-on-year drop.
Weekly mortgage applications dropped 3% following a 2.7% fall the previous week, as 30-year mortgage rates hovered around 4.75% - 4.76%.
Tonight in the US, weekly new unemployment claims and a job cuts report are due, ahead of tomorrow night’s release of January national employment statistics.
Personal income and spending, a Chicago PMI and December quarter employment costs are also expected.
Elsewhere, an initial euro zone December quarter GDP reading is keenly anticipated.
Companies expected to report earnings later today or tonight include: Amazon, BT, Celgene, ConocoPhillips, Cypress Semiconductor, Diageo, DowDuPont, General Electric, Mastercard, Nintendo, Nokia, Nomura, Northrop Grumman, Raytheon, Shell, Symantec and Unilever.
In overnight corporate news, Apple benefited from no new adverse news or figures in its December quarter report and accompanying commentary, including services revenue optimism, released post-Tuesday US trade.
Also publishing reports post-Tuesday trade, Advanced Micro Devices had disappointed with revenue outlook, but eBay boosted a share buy back and heralded a maiden, US14c dividend.
In new overnight moves and revelations, Boeing was pushed more than 6.5% higher after reporting record, $US101B revenue for 2018, exceeding profit expectations, and also forecasting greater-than-anticipated 2019 revenue.
McDonald’s also pleased with earnings, but undershot US same-store sales forecasts.
Facebook, Microsoft and Visa have reported post-US trade, Facebook and Visa generally exceeding profit and revenue expectations.
Microsoft achieved a swing to a profit, but the company’s cloud services growth appeared to disappoint.
The Australian market opens the last trading session of the month ahead of influential regional and domestic data, and following positive overnight US equities and key commodities trade.
In overnight commodities trade, oil continued higher.
US gold futures (April) settled almost flat, but added ~$US6.00 to this week’s gains in post-settlement electronic trade.
Iron ore (China port 62% Fe fines) was propelled sharply higher, in a further response to a major Brazil supply disruption.
LME copper, nickel and aluminium also rallied.
The $A appreciated sharply, beyond US72.50c, after trading at ~US71.95c early yesterday evening.
Regionally today, China is expected to publish January manufacturing and service sector PMIs midday AEDT.
Locally, the Reserve Bank of Australia’s (RBA) financial aggregates report, including private sector spending, is due 11.30am AEDT.
The Australian Bureau of Statistics (ABS) is expected to publish export and import price indices at the same time, also 11.30am.
In addition, a deluge of December quarter reports will be lodged ahead of tonight’s end-of-month.
Overseas Market Commentary
US equities markets rallied from outset overnight amid some positive large-cap stocks sentiment, key indices later benefiting further from US Federal Reserve post-policy meeting statements.
Germany’s DAX 30 opened lower and chopped markedly, however, following further disappointing data, including a preliminary January CPI estimate, plus a reported Wirecard scandal.
The FTSE 100 appeared to benefit mostly from a weaker British pound.
The US Federal Reserve referred to ‘economic and financial developments’ when indicating little likelihood of near-term rate rises and perhaps a stay on reducing the bank’s balance sheet.
In a media conference Federal Reserve chair Jerome Powell referred to a ‘weakening’ of the case for rate rises.
In the bank’s formal statement, US economic growth was no longer described as ‘strong’ but as ‘solid’.
Two days of scheduled face-to-face US-China trade talks commenced in Washington in the meantime.
In the UK, December consumer credit dropped from November’s £958M to £687M, but mortgage lending rose to £4.11B from £3.63B.
In overnight data releases, Germany’s initial January CPI reading came in at 0.8% deflation for the month, following 0.1% December growth.
Year-on-year, inflation growth came in at 1.4%, against 1.7% for December.
December import prices fell 1.3% for the month following a 1% November decline.
Year-on-year, prices were 1.6% higher, against November’s 3.1% rise.
Euro zone January business, economic and industrial confidence indices fell, but consumer confidence improved from -8.3 to -7.9.
In the US, a private sector January employment report was viewed as a generally positive indicator for tomorrow night’s overall January jobs figures, with 213,000 new jobs, following forecasts of 180,000 - 185,000, and against December’s 263,000.
December pending home sales fell for the third consecutive month, his time by 2.2% following November’s 0.9% decline.
Pending sales tallied the least in more than four years, representing a 9.8% year-on-year drop.
Weekly mortgage applications dropped 3% following a 2.7% fall the previous week, as 30-year mortgage rates hovered around 4.75% - 4.76%.
Tonight in the US, weekly new unemployment claims and a job cuts report are due, ahead of tomorrow night’s release of January national employment statistics.
Personal income and spending, a Chicago PMI and December quarter employment costs are also expected.
Elsewhere, an initial euro zone December quarter GDP reading is keenly anticipated.
Companies expected to report earnings later today or tonight include: Amazon, BT, Celgene, ConocoPhillips, Cypress Semiconductor, Diageo, DowDuPont, General Electric, Mastercard, Nintendo, Nokia, Nomura, Northrop Grumman, Raytheon, Shell, Symantec and Unilever.
In overnight corporate news, Apple benefited from no new adverse news or figures in its December quarter report and accompanying commentary, including services revenue optimism, released post-Tuesday US trade.
Also publishing reports post-Tuesday trade, Advanced Micro Devices had disappointed with revenue outlook, but eBay boosted a share buy back and heralded a maiden, US14c dividend.
In new overnight moves and revelations, Boeing was pushed more than 6.5% higher after reporting record, $US101B revenue for 2018, exceeding profit expectations, and also forecasting greater-than-anticipated 2019 revenue.
McDonald’s also pleased with earnings, but undershot US same-store sales forecasts.
Facebook, Microsoft and Visa have reported post-US trade, Facebook and Visa generally exceeding profit and revenue expectations.
Microsoft achieved a swing to a profit, but the company’s cloud services growth appeared to disappoint.