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Market Opener – 30 Nov 2017
Local Markets Commentary
The Australian market opens today’s end-of-month trade on decidedly mixed overnight international equities and commodities leads, and ahead of influential regional data.
China is expected to publish November PMIs midday AEDST.
Japan releases several October figures, including industrial production, due 10.50am AEDST.
In overnight commodities trade, gold fell. Oil extended this week’s retreat. Iron ore (China port, 6% Fe) rose slightly. LME copper and aluminium continued lower. Nickel swung higher.
The $A fell to ~US75.75c after slipping to US75.85c early yesterday evening.
Locally today, September quarter financial aggregates, including private capital expenditure are due, ahead of the Reserve Bank of Australia’s (RBA) policy meeting next week.
October private sector credit, building approvals and new home sales are also expected.
Post-trade, the RBA is due to publish foreign exchange liquidity and reserves for October.
Overseas Market Commentary
Major European and US equities trade diverged markedly overnight, the FTSE 100 and NASDAQ pushed lower on their respective opens and other markets variously gaining or settling flat.
Tech stocks were decidedly out of favour in the US, but financial stocks appreciated as US president Donald Trump promoted tax reform and the progress of proposed legislation.
Also in the US, Federal Reserve chair Janet Yellen’s prepared Senate economic committee testimony promoted US economic growth and further rate rises. Noting historically-high US asset valuations, Ms Yellen described overall financial sector vulnerabilities as ‘moderate’.
Meanwhile, the Federal Reserve’s ‘beige book’ region-by-region economic assessment again concluded modest – moderate growth, and cited increasing constriction, transport and manufacturing sector costs in noting strengthening inflation pressure.
Among other encouraging US economic indicators released overnight, second of three estimates for September quarter GDP growth came in at 3.3%, the strongest rate in three years.
October pending home sales were reported 3.5% higher for the month, following three consecutive monthly falls. Forecasters expecting an improvement had capped this at ~1%.
Earlier, Germany’s 1.8% preliminary November year-on-year CPI growth, followed a 1.6% final estimate for October. For the month, CPI was reported 0.3% higher.
In a financial stability report, Germany’s Bundesbank (central bank) noted some property market participants had become more vulnerable due to easy lending practices and high property valuations.
In the UK, perceived progress with payment details for the UK’s planned separation from the European Union was cited as one reason the British pound traded at a two-month peak against the $US.
Tonight in the US, October personal income and spending, a Chicago PMI update and weekly new unemployment claims are due.
In overnight corporate news, Germany’s Siemens revealed plans to spin out a €40B medical imaging and diagnostics division, and to list this exclusively in Frankfurt.
The Australian market opens today’s end-of-month trade on decidedly mixed overnight international equities and commodities leads, and ahead of influential regional data.
China is expected to publish November PMIs midday AEDST.
Japan releases several October figures, including industrial production, due 10.50am AEDST.
In overnight commodities trade, gold fell. Oil extended this week’s retreat. Iron ore (China port, 6% Fe) rose slightly. LME copper and aluminium continued lower. Nickel swung higher.
The $A fell to ~US75.75c after slipping to US75.85c early yesterday evening.
Locally today, September quarter financial aggregates, including private capital expenditure are due, ahead of the Reserve Bank of Australia’s (RBA) policy meeting next week.
October private sector credit, building approvals and new home sales are also expected.
Post-trade, the RBA is due to publish foreign exchange liquidity and reserves for October.
Overseas Market Commentary
Major European and US equities trade diverged markedly overnight, the FTSE 100 and NASDAQ pushed lower on their respective opens and other markets variously gaining or settling flat.
Tech stocks were decidedly out of favour in the US, but financial stocks appreciated as US president Donald Trump promoted tax reform and the progress of proposed legislation.
Also in the US, Federal Reserve chair Janet Yellen’s prepared Senate economic committee testimony promoted US economic growth and further rate rises. Noting historically-high US asset valuations, Ms Yellen described overall financial sector vulnerabilities as ‘moderate’.
Meanwhile, the Federal Reserve’s ‘beige book’ region-by-region economic assessment again concluded modest – moderate growth, and cited increasing constriction, transport and manufacturing sector costs in noting strengthening inflation pressure.
Among other encouraging US economic indicators released overnight, second of three estimates for September quarter GDP growth came in at 3.3%, the strongest rate in three years.
October pending home sales were reported 3.5% higher for the month, following three consecutive monthly falls. Forecasters expecting an improvement had capped this at ~1%.
Earlier, Germany’s 1.8% preliminary November year-on-year CPI growth, followed a 1.6% final estimate for October. For the month, CPI was reported 0.3% higher.
In a financial stability report, Germany’s Bundesbank (central bank) noted some property market participants had become more vulnerable due to easy lending practices and high property valuations.
In the UK, perceived progress with payment details for the UK’s planned separation from the European Union was cited as one reason the British pound traded at a two-month peak against the $US.
Tonight in the US, October personal income and spending, a Chicago PMI update and weekly new unemployment claims are due.
In overnight corporate news, Germany’s Siemens revealed plans to spin out a €40B medical imaging and diagnostics division, and to list this exclusively in Frankfurt.