Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 06 May 2019
Local Markets Commentary
The Australian market opens a new week’s trade amid heightened US-China tension and a drop in US equities futures, ahead of scheduled US-China trade talks in Washington later this week, and new data out of China today.
In addition, additional early-month domestic data is due today, ahead of tomorrow’s Reserve Bank of Australia policy meeting.
Over the weekend the US president warned the US could impose a 25% import tax on all goods from China.
In the meantime, North Korea reportedly launch-tested a batch of ‘guided weapons’.
Caixin is expected to report its China services PMI 11.45am AEST.
Locally today, ANZ’s monthly job advertisements and the Melbourne Institute’s inflation gauge reports are due.
Pre-trade, CoreLogic releases weekly capital cities residential property prices.
In addition, WBC has reported interim results.
In overnight Friday commodities trade, oil turned to settle higher.
US gold futures (June) swung higher.
LME copper also turned and rallied. Nickel gained. Aluminium fell.
The $A appreciated to ~US70.25c after trading below US69.95c early Friday evening, but has since fallen.
Japan’s markets remain closed today but will resume tomorrow.
China’s markets reopen for trade today.
In addition, additional early-month domestic data is due today, ahead of tomorrow’s Reserve Bank of Australia policy meeting.
Over the weekend the US president warned the US could impose a 25% import tax on all goods from China.
In the meantime, North Korea reportedly launch-tested a batch of ‘guided weapons’.
Caixin is expected to report its China services PMI 11.45am AEST.
Locally today, ANZ’s monthly job advertisements and the Melbourne Institute’s inflation gauge reports are due.
Pre-trade, CoreLogic releases weekly capital cities residential property prices.
In addition, WBC has reported interim results.
In overnight Friday commodities trade, oil turned to settle higher.
US gold futures (June) swung higher.
LME copper also turned and rallied. Nickel gained. Aluminium fell.
The $A appreciated to ~US70.25c after trading below US69.95c early Friday evening, but has since fallen.
Japan’s markets remain closed today but will resume tomorrow.
China’s markets reopen for trade today.
Overseas Market Commentary
Relatively steady trade featured across US equities markets overnight Friday, the NASDAQ achieving another record settlement.
Germany’s DAX continued to chop however, and the FTSE 100 demonstrated two significant sentiment swings as UK local government election results effectively annihilated major party representatives.
The US April employment report included the creation of 263,000 jobs. Against forecasts of ~190,000.
Wages grew just 0.2% for the month, but were 3.2% higher than a year earlier.
Unemployment fell by 0.2% to 3.6%, mostly attributed to a 490,000 drop in the overall eligible workforce count, but the rate nonetheless the lowest since December 2019.
In other US data releases, the ISM’s services sector activity index was calculated 0.6 lower, at a nevertheless strong 55.5.
The services sector accounts for ~0.7% of US GDP component calculations.
March wholesale inventories were reported flat following a 0.1% February increase.
April vehicle sales tallied 16.4M, against 17.45M for March.
In other overnight Friday data releases the UK’s April services sector PMI cheered, returning to expansion mode with a 1.5-point increase to 50.4.
The euro zone’s initial April CPI reading came in at 1.7% growth year-on-year.
Producer prices slipped 0.1% for the month, but were 2.9% higher year-on-year.
Tonight in the US, an economic outlook speech from a Federal Reserve official is anticipated.
Companies scheduled to report earnings later today or tonight include: American International Group (AIG), Hochtief, Liberty Global, Sysco Corp and Tyson Foods.
In overnight Friday and weekend corporate news, quarterly figures from HSBC (30% higher, $US6.2B pre-tax profit), Société Générale (despite a 26% net profit drop to €631M) and Adidas (sales up 6% to €5.9B) buoyed European trade sentiment.
Fiat Chrysler numbers disappointed, but not so a full year forecast based on expected sales from pickups manufactured for the US market.
Berkshire Hathaway reported a $US22B March quarter profit and $US5.6B operating income.
Amazon appreciated ~3% overnight Friday after Berkshire Hathaway confirmed buying.
Meanwhile, Spotify has accused Apple of anti-competitive activity with regards to non-Apple streaming services.
UK markets, including the London Metals Exchange (LME) will not trade later today/tonight, due to a public holiday.
Germany’s DAX continued to chop however, and the FTSE 100 demonstrated two significant sentiment swings as UK local government election results effectively annihilated major party representatives.
The US April employment report included the creation of 263,000 jobs. Against forecasts of ~190,000.
Wages grew just 0.2% for the month, but were 3.2% higher than a year earlier.
Unemployment fell by 0.2% to 3.6%, mostly attributed to a 490,000 drop in the overall eligible workforce count, but the rate nonetheless the lowest since December 2019.
In other US data releases, the ISM’s services sector activity index was calculated 0.6 lower, at a nevertheless strong 55.5.
The services sector accounts for ~0.7% of US GDP component calculations.
March wholesale inventories were reported flat following a 0.1% February increase.
April vehicle sales tallied 16.4M, against 17.45M for March.
In other overnight Friday data releases the UK’s April services sector PMI cheered, returning to expansion mode with a 1.5-point increase to 50.4.
The euro zone’s initial April CPI reading came in at 1.7% growth year-on-year.
Producer prices slipped 0.1% for the month, but were 2.9% higher year-on-year.
Tonight in the US, an economic outlook speech from a Federal Reserve official is anticipated.
Companies scheduled to report earnings later today or tonight include: American International Group (AIG), Hochtief, Liberty Global, Sysco Corp and Tyson Foods.
In overnight Friday and weekend corporate news, quarterly figures from HSBC (30% higher, $US6.2B pre-tax profit), Société Générale (despite a 26% net profit drop to €631M) and Adidas (sales up 6% to €5.9B) buoyed European trade sentiment.
Fiat Chrysler numbers disappointed, but not so a full year forecast based on expected sales from pickups manufactured for the US market.
Berkshire Hathaway reported a $US22B March quarter profit and $US5.6B operating income.
Amazon appreciated ~3% overnight Friday after Berkshire Hathaway confirmed buying.
Meanwhile, Spotify has accused Apple of anti-competitive activity with regards to non-Apple streaming services.
UK markets, including the London Metals Exchange (LME) will not trade later today/tonight, due to a public holiday.