Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 03 Aug 2018
Local Markets Commentary
The Australian market was set to open higher in early Friday trade, with Australian futures up 21 points as the Australian dollar shed 0.6% to 73.62 against the greenback.
Commodities and miners were on the backfoot, primarily over concerns of an escalating trade war between China and the United States.
The Australian dollar also caught a trade wind cold over amplified tariff war rhetoric between the world’s two superpowers and was at a four-day low in early morning trade.
The S&P/ASX 200 dipped 0.6% to an eight-day low of 6240.9, taking its cue from mining stocks with Rio Tinto (RIO) shedding 4.9% to its lowest in three-and-a-half months at $77.61.
In early morning trade, Seven West Media (SWM), up 4.17%, ALS Limited (ALQ), lifting 3.01% and St Barbara (SBM) 2.96% were the early risers at the front of the pack.
Locally today, the Australian Bureau of Statistics (ABS) reports June and June quarter retail trade 11.30am AEST.
Pre-trade, AIG’s July services sector activity index is due.
July new vehicle sales are also expected today.
Regionally, the Bank of Japan’s policy meeting minutes, expected 9.50am AEST, are sure to be thoroughly parsed.
Services sector activity indices are also due for both China and Japan 11.45am AEST and 10.30am respectively.
Overseas Market Commentary
The Bank of England has hiked interest rates for only the second time since the global financial crisis.
The Monetary Policy Committee voted unanimously to increase rates from 0.5% to 0.75% as a result of a strong labor market and credit growth.
The BOE has flagged additional potential rates hikes, albeit gradually, saying in a statement that macroeconomic forecasts were pointing in this direction.
BOE Governor Mark Carney said economic growth had rebounded in the second quarter following a slight slowdown in the beginning of the year.
Last November the BOE lifted interest rates 0.25% to 0.5%, representing the first hike in 10 years. In August 2016 the bank had cut rates following the Brexit vote.
On Wall St Apple shares lifted 2.9% to $207.39, as the iconic computer brand became the first U.S. traded company to hit $1 trillion in market cap value.
Apple stock is up 9% since Tuesday. Apple’s performance lifted the S&P 500, which rose 0.5% to 2,877.22 and the Nasdaq, which was 1.2% higher at 7,802.69.
However, the major indexes fell earlier in the day after U.S. President Donald Trump threatened to intensify trade war tariffs on China and announced that it was considering increasing the levies on $200 billion worth of Chinese goods by 25%.
China’s Ministry of Commerce retorted by saying it was prepared to retaliate to “defend the nation’s dignity and the interests of the people, defend free trade and the multilateral system and defend the common interests of all countries”.
Caterpillar and Boeing were down 0.4% and 0.9% respectively, while the Shanghai Composite and Nikkei 225 slumped 2% and 1.03%.
However, Tesla shares surged 16% after embattled CEO Elon Musk said the company would deliver a profit from the second quarter.
Also in the U.S., the Labor Department announced that weekly jobless claims rose to 218,000 ahead of July employment statistics due to be released tonight.
However, the Commerce Department said US factory good orders increased 0.7% in June, beating an anticipated rise of 0.4%.
June trade figures and ISM’s services sector activity index due today will indicate likely revisions to the initial June quarter GDP released earlier this week.
Markit’s final July services and composite PMIs are also due.
Companies due to report earnings or provide an update later today and tonight include: Allianz, Berkshire Hathaway, Kraft Heinz, Noble Energy, Petrobras, Royal Bank of Scotland and Toyota Motor Corp.
The Australian market was set to open higher in early Friday trade, with Australian futures up 21 points as the Australian dollar shed 0.6% to 73.62 against the greenback.
Commodities and miners were on the backfoot, primarily over concerns of an escalating trade war between China and the United States.
The Australian dollar also caught a trade wind cold over amplified tariff war rhetoric between the world’s two superpowers and was at a four-day low in early morning trade.
The S&P/ASX 200 dipped 0.6% to an eight-day low of 6240.9, taking its cue from mining stocks with Rio Tinto (RIO) shedding 4.9% to its lowest in three-and-a-half months at $77.61.
In early morning trade, Seven West Media (SWM), up 4.17%, ALS Limited (ALQ), lifting 3.01% and St Barbara (SBM) 2.96% were the early risers at the front of the pack.
Locally today, the Australian Bureau of Statistics (ABS) reports June and June quarter retail trade 11.30am AEST.
Pre-trade, AIG’s July services sector activity index is due.
July new vehicle sales are also expected today.
Regionally, the Bank of Japan’s policy meeting minutes, expected 9.50am AEST, are sure to be thoroughly parsed.
Services sector activity indices are also due for both China and Japan 11.45am AEST and 10.30am respectively.
Overseas Market Commentary
The Bank of England has hiked interest rates for only the second time since the global financial crisis.
The Monetary Policy Committee voted unanimously to increase rates from 0.5% to 0.75% as a result of a strong labor market and credit growth.
The BOE has flagged additional potential rates hikes, albeit gradually, saying in a statement that macroeconomic forecasts were pointing in this direction.
BOE Governor Mark Carney said economic growth had rebounded in the second quarter following a slight slowdown in the beginning of the year.
Last November the BOE lifted interest rates 0.25% to 0.5%, representing the first hike in 10 years. In August 2016 the bank had cut rates following the Brexit vote.
On Wall St Apple shares lifted 2.9% to $207.39, as the iconic computer brand became the first U.S. traded company to hit $1 trillion in market cap value.
Apple stock is up 9% since Tuesday. Apple’s performance lifted the S&P 500, which rose 0.5% to 2,877.22 and the Nasdaq, which was 1.2% higher at 7,802.69.
However, the major indexes fell earlier in the day after U.S. President Donald Trump threatened to intensify trade war tariffs on China and announced that it was considering increasing the levies on $200 billion worth of Chinese goods by 25%.
China’s Ministry of Commerce retorted by saying it was prepared to retaliate to “defend the nation’s dignity and the interests of the people, defend free trade and the multilateral system and defend the common interests of all countries”.
Caterpillar and Boeing were down 0.4% and 0.9% respectively, while the Shanghai Composite and Nikkei 225 slumped 2% and 1.03%.
However, Tesla shares surged 16% after embattled CEO Elon Musk said the company would deliver a profit from the second quarter.
Also in the U.S., the Labor Department announced that weekly jobless claims rose to 218,000 ahead of July employment statistics due to be released tonight.
However, the Commerce Department said US factory good orders increased 0.7% in June, beating an anticipated rise of 0.4%.
June trade figures and ISM’s services sector activity index due today will indicate likely revisions to the initial June quarter GDP released earlier this week.
Markit’s final July services and composite PMIs are also due.
Companies due to report earnings or provide an update later today and tonight include: Allianz, Berkshire Hathaway, Kraft Heinz, Noble Energy, Petrobras, Royal Bank of Scotland and Toyota Motor Corp.