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Market Opener – 16 Oct 2019
Local Markets Commentary
The Australian market commences mid-week trade with new data out of China and a reduced domestic growth prediction from the International Monetary Fund (IMF) overnight, improved international equities sentiment, four large-profile domestic stocks hosting AGMs, and two reporting for the September quarter.
Post-yesterday’s ASX trade, China has reported 1690B yuan worth of new lending during September, against 1210B for August.
The IMF has cut Australia’s predicted 2019 GDP growth from 2.1% to 1.7%, and 2020 growth from 2.8% to 2.3%.
Locally today, Westpac and the Melbourne Institute are due to release their monthly leading economic index report.
In addition, the Commonwealth Bank of Australia (CBA) is among ASX-listed stocks hosting an annual general meeting. Rio Tinto (RIO) has lodged a September quarter operations report pre-trade.
In overnight commodities trade, oil extended Tuesday’s fall.
US gold futures (December) swung lower.
Iron ore (Nymex CFR China, 62% Fe) also turned higher.
LME copper also turned, but lower. Nickel continued to pull back. Aluminium recorded a gain.
The $A fell to ~US67.60c after trading at US67.75c early yesterday evening.
This morning, New Zealand has reported 0.7% CPI growth for the September quarter and 1.5% year-on-year growth, each rate 0.1% greater-than-anticipated.
Post-yesterday’s ASX trade, China has reported 1690B yuan worth of new lending during September, against 1210B for August.
The IMF has cut Australia’s predicted 2019 GDP growth from 2.1% to 1.7%, and 2020 growth from 2.8% to 2.3%.
Locally today, Westpac and the Melbourne Institute are due to release their monthly leading economic index report.
In addition, the Commonwealth Bank of Australia (CBA) is among ASX-listed stocks hosting an annual general meeting. Rio Tinto (RIO) has lodged a September quarter operations report pre-trade.
In overnight commodities trade, oil extended Tuesday’s fall.
US gold futures (December) swung lower.
Iron ore (Nymex CFR China, 62% Fe) also turned higher.
LME copper also turned, but lower. Nickel continued to pull back. Aluminium recorded a gain.
The $A fell to ~US67.60c after trading at US67.75c early yesterday evening.
This morning, New Zealand has reported 0.7% CPI growth for the September quarter and 1.5% year-on-year growth, each rate 0.1% greater-than-anticipated.
Overseas Market Commentary
Major European and US equities markets mostly turned higher overnight.
Select US corporate earnings surprised on the upside and a China foreign ministry spokesperson was reported as claiming the US and China remained ‘on the same page’ regarding trade issues.
Among overnight data releases, the UK’s August average earnings grew by 3.8% following a 3.9% gain for July. Unemployment rose by 0.1% to 3.9%.
September new unemployment claims rose to 21,100 from a 16,300 August increase.
An economic sentiment index for Germany was estimated at -22.8, against -22.5 in September.
For the overall euro zone, the index fell to -23.5 from -22.4.
In the US, the New York Fed’s October regional manufacturing survey current conditions index doubled to four, following expectations of 0.8.
Tonight in the US, the Federal Reserve’s district-by-district economic update report (beige book), September retail sales, August business inventories and an industry-calculated housing market index are due.
Bank of England governor Mark Carney is also scheduled to speak as a panellist at an International Monetary Fund (IMF) annual general meeting week event.
European Central Bank chief economist Philip Land will also speak publicly in Washington.
Elsewhere, the UK PM is scheduled to meet with his Conservative ruling party MPs tonight following reports of progress with European Union (EU) officials regarding arrangements governing the planned UK separation from the EU 31 October.
Also tonight, September CPI readings are due for both the euro zone and UK.
In addition, the euro zone is scheduled to report August trade figures.
Companies scheduled to report earnings include: Abbott Labs, Alcoa, American Express, ASOS, eBay, IBM, Netflix and Roche.
Select US corporate earnings surprised on the upside and a China foreign ministry spokesperson was reported as claiming the US and China remained ‘on the same page’ regarding trade issues.
Among overnight data releases, the UK’s August average earnings grew by 3.8% following a 3.9% gain for July. Unemployment rose by 0.1% to 3.9%.
September new unemployment claims rose to 21,100 from a 16,300 August increase.
An economic sentiment index for Germany was estimated at -22.8, against -22.5 in September.
For the overall euro zone, the index fell to -23.5 from -22.4.
In the US, the New York Fed’s October regional manufacturing survey current conditions index doubled to four, following expectations of 0.8.
Tonight in the US, the Federal Reserve’s district-by-district economic update report (beige book), September retail sales, August business inventories and an industry-calculated housing market index are due.
Bank of England governor Mark Carney is also scheduled to speak as a panellist at an International Monetary Fund (IMF) annual general meeting week event.
European Central Bank chief economist Philip Land will also speak publicly in Washington.
Elsewhere, the UK PM is scheduled to meet with his Conservative ruling party MPs tonight following reports of progress with European Union (EU) officials regarding arrangements governing the planned UK separation from the EU 31 October.
Also tonight, September CPI readings are due for both the euro zone and UK.
In addition, the euro zone is scheduled to report August trade figures.
Companies scheduled to report earnings include: Abbott Labs, Alcoa, American Express, ASOS, eBay, IBM, Netflix and Roche.