Research

Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.

Market Opener – 14 Feb 2019

 
Local Markets Commentary
The Australian market commences today’s trade ahead of influential regional data and with a swag of high-profile domestic stocks reporting earnings. 

China is expected to report January trade figures 2pm AEDT.

Japan’s December quarter GDP estimate is expected 10.50am AEDT.

Locally today, the Melbourne Institute publishes a monthly inflation expectations report 11am AEDT.

IGO and JHG are among stocks trading ex-dividend today. Please see p4 for details.

In overnight commodities trade, oil extended Tuesday’s move higher.

US gold futures (April) again settled slightly higher.

Iron ore (China port, 62% Fe) was pushed lower for a second consecutive session.

LME copper, nickel and aluminium turned to record small gains.

The $A slipped below US71.00c after trading at ~US71.20c early yesterday evening.

Overseas Market Commentary
Choppy trade featured across major European and US equities markets overnight, reflecting disappointing economic indicators on both sides of the Atlantic and unresolved geopolitical issues.

Reports emerged that China’s president Xi Jinping was considering meeting with the US trade delegation in Beijing.

Among data releases, UK January CPI growth was reported as 1.8% higher year-on-year.

For the month, the CPI fell 0.8%, after rising 0.2% in December.

A subsequent British pound fall against the $US supported select stocks sufficiently to deliver an ultimate FTSE 100 rally.

Euro zone industrial output dropped by 0.9% during December, producing a 4.2% year-on-year decline.

In the US, the January CPI came in flat for the month and 1.6% higher year-on-year, supporting views of a temporary Federal Reserve stay on interest rate rises.

December treasury figures revealed a $US14B budget deficit, in part attributed to lower corporate tax income following through from the early-2018 tax cuts.

December quarter corporate tax income dropped 17% year-on-year, against an ~4% fall in paid individual tax.

Tonight in the US, weekly new unemployment claims are due, together with January producer prices.

Elsewhere, Germany and the euro zone release December quarter GDP estimates. 

Companies scheduled to report earnings later today or tonight include: Airbus, AstraZeneca, Banco de Brasil, CME Group, Coca-Cola, Commerzbank, Credit Agricole, Credit Suisse, Dai-ichi Life, Duke Energy, Kirin Holdings, Kogas, Lotte, Nestlé and Renault.

BP, Shell and Unilever trade ex-dividend on the FTSE 100.

In overnight corporate news, Barrick Gold reported a $US1.2B December quarter loss and $US155B loss for 2018. Tax adjustments and impairments tallied more than $US1.6B over the year.

Coal exporter Teck Resources adjusted December quarter profit tumbled 26.5%.

Planned cost cuts and a buyback supported video game publisher Activision Blizzard to a 7% gain, despite a disappointing forecast lodged with results post-Tuesday US trade.

Meanwhile, electric truck manufacturer Rivian Automotive was reported to be attracting interest from both Amazon and General Electric, likely resulting investments estimated to value Rivian at $US1B - $US2B.

Cisco Systems has reported higher-than anticipated revenue post-US trade.

In the meantime, US equities markets are heading towards the president’s day Monday public holiday weekend.
 
14/02/2019 7:00:00 AM

Back to top