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Market Opener - 26 Jul 2017

 
Local Markets Commentary

The Australian market commences mid-week trade ahead of key domestic data and a keenly anticipated speech by the head of the Reserve Bank of Australia (RBA), and on largely positive commodity price leads.

The Australian Bureau of Statistics (ABS) reports June quarter CPI growth 11.30am AEST.

A speech by Reserve Bank of Australia (RBA) governor Philip Lowe is scheduled to commence 1.05pm.

A monthly job vacancies update is also expected today.

In overnight commodities trade, oil continued its latest rally. US gold futures were pushed slightly lower. LME copper picked up the pace of its recent positive run. Iron ore (China port, 62% Fe) rose for a second consecutive day.

The $A ultimately moved slightly higher, after trading at ~US79.30c early yesterday evening. Comparable demeanour is not assured today, given a CPI release and RBA speech.

Overseas Market Commentary

Major European and most US equities markets recovered support overnight from a mix of select corporate earnings and outlooks, the breaking of a domestic US political deadlock and some encouraging economic indicators.

US Republican lawmakers voted by the slimmest margin to renew efforts to put in place new healthcare legislation.

In US data releases, the Conference Board’s consumer sentiment reading came in at 121.1, following forecasts of 116.

A Case-Shiller house price report indicated 5.7% higher prices over the May quarter.

The Richmond Fed’s manufacturing index rose three points to 14, following forecasts of seven.

In Germany, an IFO business sentiment index was calculated at a record high.

Tonight in the US, the Federal Reserve concludes a two-day policy meeting and releases a statement.

Among data releases, June new home sales and Markit’s initial July services PMI are due, together with weekly mortgage applications.

Amazon, Boeing, Coca-Cola, Daewoo Engineering & Construction, Facebook, Ford Motor Co, Hyundai Motor, ITV, Nintendo and Samsung C&T are among companies scheduled to report earnings today or tonight.

In overnight corporate news, McDonald’s traded ~5% higher on a better-than-anticipated June quarter, bolstered by new offerings.

Alphabet, which had reported late-Monday, was pushed ~3% lower on cost-v-profit margin fears.

Another outlook upgrade from Caterpillar propelled this stock almost 6% higher.

General Motors booked a 42% quarterly net profit drop.

The FTSE 100 was buoyed by a $US1.2B price secured by shoemaker Jimmy Choo, in a sales process ‘won’ by US business Michael Kors. Jimmy Choo shares jumped ~17%.

 
26/07/2017 7:49:19 AM

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