Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 08 Jun 2018
Local Markets Commentary
The Australian market opens Friday trade ahead of influential data out of China today, and a Monday public holiday weekend coming up for the ASX and a majority of States and Territories.
Post-ASX trade yesterday, China reported foreign exchange reserves at $US3.111 trillion as at 31 May, against $US3.125 trillion at the end of April.
Today, China is expected to report May trade balance 1pm AEST.
Japan is scheduled to release a final March quarter GDP reading 9.50am AEST.
Regional data releases continue over the weekend, with China reporting May CPI and producer prices.
Meanwhile, G7 leaders are gathering in Quebec, Canada for tonight’s official commencement of a two-day summit, expected to deliver a plethora of international trade relationships statements from key leaders.
In overnight commodities trade, oil swung higher and rallied.
US gold futures settled slightly higher.
Iron ore (China port, 62% Fe) rose for a third consecutive session.
LME copper extended this week’s rally. Nickel and aluminium fell.
The $A fell below US76.30c after trading at ~US76.50c early yesterday evening.
The ASX will be closed Monday. Next week’s trade commences Tuesday, 12 June.
Overseas Market Commentary
Choppy trade featured across major European and US equities markets overnight, ahead of the two-day G7 leaders’ summit, commencing tonight in Quebec amid broad trade tensions with the US.
The Japanese PM was in the US, en route to Canada, the US confirming improving bilateral trade relationships was high on the agenda.
Meanwhile, the euro and copper continued higher, oil rallied, US treasury yields fell, Turkey’s central bank raised rates in an attempt to lift the lira, and the London Stock Exchange experienced an hour-long technical delay.
Central bank behaviour was firmly in focus, given scheduled policy meetings for the US Federal Reserve and European Central Bank (ECB) next week, amid US rate rise and ECB bond purchase reductions talk.
Among new data releases, euro zone’s final March quarter GDP growth reading confirmed 2.5% year-on-year growth.
In Germany, April factory orders dropped 2.5% following a 1.1% fall in March. Forecasters had predicted a 0.8% bounce for April.
The UK Halifax May house price index rose 1.5% for the month after a 3.1% tumble in April.
In the US, weekly new unemployment claims rose by just 1000 following expectations of a 4000 increase.
April consumer credit rose by $US9.26B, representing a third consecutive slowing, this time at the least rate in seven months, against forecasts of a $US14B gain. The Federal Reserve estimated the annual adjusted credit growth rate at 2.9%.
Tonight in the US, April wholesale inventories and an economic optimism index are due.
In overnight corporate news, the US revealed it would allow US companies to sell components to China telecom specialist ZTE under a deal whereby ZTE would pay ~$US1B worth of penalties and execute board and management change.
This supported sentiment among select chip manufacturers.
Deutsche Bank and Commerzbank were reported to have held several potential merger discussions, including with government officials and major shareholders.
UK retailer House of Fraser announced its survival depended on closing 31 department stores, with the potential loss of 6000 jobs. This is due in part to a proposed majority takeover by Hong Kong-listed C.banner.
McDonald’s was reported to be considering further job cuts in line with a restructuring plan, and the stock rose 4.3%.
Facebook and Microsoft were each pushed more than 1.5% lower, however.
Alphabet declined 1% on speculation the EU antitrust penalty expected for Google next month could be as much as $US11B.
In the meantime, reports of Carl Icahn buying Allergan Plc shares, supported the pharmaceuticals manufacturer to a 5% gain.
The Australian market opens Friday trade ahead of influential data out of China today, and a Monday public holiday weekend coming up for the ASX and a majority of States and Territories.
Post-ASX trade yesterday, China reported foreign exchange reserves at $US3.111 trillion as at 31 May, against $US3.125 trillion at the end of April.
Today, China is expected to report May trade balance 1pm AEST.
Japan is scheduled to release a final March quarter GDP reading 9.50am AEST.
Regional data releases continue over the weekend, with China reporting May CPI and producer prices.
Meanwhile, G7 leaders are gathering in Quebec, Canada for tonight’s official commencement of a two-day summit, expected to deliver a plethora of international trade relationships statements from key leaders.
In overnight commodities trade, oil swung higher and rallied.
US gold futures settled slightly higher.
Iron ore (China port, 62% Fe) rose for a third consecutive session.
LME copper extended this week’s rally. Nickel and aluminium fell.
The $A fell below US76.30c after trading at ~US76.50c early yesterday evening.
The ASX will be closed Monday. Next week’s trade commences Tuesday, 12 June.
Overseas Market Commentary
Choppy trade featured across major European and US equities markets overnight, ahead of the two-day G7 leaders’ summit, commencing tonight in Quebec amid broad trade tensions with the US.
The Japanese PM was in the US, en route to Canada, the US confirming improving bilateral trade relationships was high on the agenda.
Meanwhile, the euro and copper continued higher, oil rallied, US treasury yields fell, Turkey’s central bank raised rates in an attempt to lift the lira, and the London Stock Exchange experienced an hour-long technical delay.
Central bank behaviour was firmly in focus, given scheduled policy meetings for the US Federal Reserve and European Central Bank (ECB) next week, amid US rate rise and ECB bond purchase reductions talk.
Among new data releases, euro zone’s final March quarter GDP growth reading confirmed 2.5% year-on-year growth.
In Germany, April factory orders dropped 2.5% following a 1.1% fall in March. Forecasters had predicted a 0.8% bounce for April.
The UK Halifax May house price index rose 1.5% for the month after a 3.1% tumble in April.
In the US, weekly new unemployment claims rose by just 1000 following expectations of a 4000 increase.
April consumer credit rose by $US9.26B, representing a third consecutive slowing, this time at the least rate in seven months, against forecasts of a $US14B gain. The Federal Reserve estimated the annual adjusted credit growth rate at 2.9%.
Tonight in the US, April wholesale inventories and an economic optimism index are due.
In overnight corporate news, the US revealed it would allow US companies to sell components to China telecom specialist ZTE under a deal whereby ZTE would pay ~$US1B worth of penalties and execute board and management change.
This supported sentiment among select chip manufacturers.
Deutsche Bank and Commerzbank were reported to have held several potential merger discussions, including with government officials and major shareholders.
UK retailer House of Fraser announced its survival depended on closing 31 department stores, with the potential loss of 6000 jobs. This is due in part to a proposed majority takeover by Hong Kong-listed C.banner.
McDonald’s was reported to be considering further job cuts in line with a restructuring plan, and the stock rose 4.3%.
Facebook and Microsoft were each pushed more than 1.5% lower, however.
Alphabet declined 1% on speculation the EU antitrust penalty expected for Google next month could be as much as $US11B.
In the meantime, reports of Carl Icahn buying Allergan Plc shares, supported the pharmaceuticals manufacturer to a 5% gain.