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Before making any investment decision, you should consult your adviser.
Market Opener – 17 Nov 2017
Local Markets Commentary
The Australian market opens Friday trade following an overnight US equities rally, but on uninspiring leads for several key commodities.
Oil extended this week’s decline. US gold futures settled barely changed. LME copper turned lower and nickel continued so. Iron ore continued modestly lower.
The $A fluctuated after trading at ~US75.85c early yesterday evening.
Locally today, October motor vehicle sales and a Conference Board leading index are anticipated.
Meanwhile, JHG and SOL trade ex-dividend.
China is expected to report October property prices over the weekend.
Overseas Market Commentary
Major European and US equities market investors were again confronted with multiple considerations overnight. Select earnings and US tax legislation optimism were cited as major rallying factors.
Norway’s sovereign wealth fund announced plans to sell off petroleum sector investments in an attempt to reduce vulnerability. Norway’s central bank was quick to point out the proposal did not represent any view on the sector’s sustainability, nor mask the fund’s oil and gas price expectations.
In the US, the House of Representatives approved (227 v 205) the majority Republican members’ proposal for a new tax system that some maintained would grow the national deficit by $US1.5 trillion within a decade. A Senate vote is needed, and Republicans there have put up their own planned legislation.
Across the Atlantic, Bank of England governor Mark Carney promoted the need for a ‘transitional’ plan for the UK’s departure from the European Union (EU).
In the meantime, UK October year-on-year retail sales were reported 0.3% lower, following a 1.2% rise in September, but some forecasters had predicted a 0.6% fall.
The euro zone’s final October CPI estimate delivered 0.1% growth for the month and 1.4% year-on-year, following 0.4% and 1.5% respectively for September.
Among US data releases, weekly new unemployment claims rose by 10,000.
October import prices rose 0.2%.
October industrial production improved 0.9%, following a 0.3% gain for September.
In Saudi Arabia, reports emerged recently-detained royal and business sector personnel had been offered release should they pay the Saudi government up to 70% of their individual wealth.
Speculation continued over the status in Saudi Arabia of Lebanon’s PM, who earlier this month said he had stepped down. The PM would reportedly travel to France this weekend before returning to Lebanon and officially resigning, some claimed.
Tonight in the US, housing starts, building permits and a regional manufacturing index are due.
European Central Bank (ECB) president Mario Draghi speaks publicly on ‘Europe into a new era – how to seize the opportunities’.
In overnight corporate news, US retailer Walmart was pushed more than 10% to record peaks on 4.2% higher quarterly revenue and forecast-beating profit, each boosted by in-store and online interest. This helped support the consumer staples sector.
Best Buy fell, however, on disappointing revenue and profit guidance.
Cisco Systems, which had pleased with quarterly results and revenue expectations post-US Wednesday trade, appreciated to multi-year highs.
Underscoring keen sector competition, Viacom fell on subscriber number and revenue commentary, which appeared to undershoot expectations.
Germany’s Siemens announced 6900 job cuts on reduced turbine demand among growing renewable energy interest.
In the UK, the FTSE 100 was impacted by Marks & Spencer, Sainsbury’s and Shell trading ex-dividend.
Meanwhile, US markets are heading towards a shortened trading week, due to Thanksgiving next Thursday. Associated ‘Black Friday’ retail sales will be a key sentiment mover, indicating consumer mood as festive season buying officially commences.
The Australian market opens Friday trade following an overnight US equities rally, but on uninspiring leads for several key commodities.
Oil extended this week’s decline. US gold futures settled barely changed. LME copper turned lower and nickel continued so. Iron ore continued modestly lower.
The $A fluctuated after trading at ~US75.85c early yesterday evening.
Locally today, October motor vehicle sales and a Conference Board leading index are anticipated.
Meanwhile, JHG and SOL trade ex-dividend.
China is expected to report October property prices over the weekend.
Overseas Market Commentary
Major European and US equities market investors were again confronted with multiple considerations overnight. Select earnings and US tax legislation optimism were cited as major rallying factors.
Norway’s sovereign wealth fund announced plans to sell off petroleum sector investments in an attempt to reduce vulnerability. Norway’s central bank was quick to point out the proposal did not represent any view on the sector’s sustainability, nor mask the fund’s oil and gas price expectations.
In the US, the House of Representatives approved (227 v 205) the majority Republican members’ proposal for a new tax system that some maintained would grow the national deficit by $US1.5 trillion within a decade. A Senate vote is needed, and Republicans there have put up their own planned legislation.
Across the Atlantic, Bank of England governor Mark Carney promoted the need for a ‘transitional’ plan for the UK’s departure from the European Union (EU).
In the meantime, UK October year-on-year retail sales were reported 0.3% lower, following a 1.2% rise in September, but some forecasters had predicted a 0.6% fall.
The euro zone’s final October CPI estimate delivered 0.1% growth for the month and 1.4% year-on-year, following 0.4% and 1.5% respectively for September.
Among US data releases, weekly new unemployment claims rose by 10,000.
October import prices rose 0.2%.
October industrial production improved 0.9%, following a 0.3% gain for September.
In Saudi Arabia, reports emerged recently-detained royal and business sector personnel had been offered release should they pay the Saudi government up to 70% of their individual wealth.
Speculation continued over the status in Saudi Arabia of Lebanon’s PM, who earlier this month said he had stepped down. The PM would reportedly travel to France this weekend before returning to Lebanon and officially resigning, some claimed.
Tonight in the US, housing starts, building permits and a regional manufacturing index are due.
European Central Bank (ECB) president Mario Draghi speaks publicly on ‘Europe into a new era – how to seize the opportunities’.
In overnight corporate news, US retailer Walmart was pushed more than 10% to record peaks on 4.2% higher quarterly revenue and forecast-beating profit, each boosted by in-store and online interest. This helped support the consumer staples sector.
Best Buy fell, however, on disappointing revenue and profit guidance.
Cisco Systems, which had pleased with quarterly results and revenue expectations post-US Wednesday trade, appreciated to multi-year highs.
Underscoring keen sector competition, Viacom fell on subscriber number and revenue commentary, which appeared to undershoot expectations.
Germany’s Siemens announced 6900 job cuts on reduced turbine demand among growing renewable energy interest.
In the UK, the FTSE 100 was impacted by Marks & Spencer, Sainsbury’s and Shell trading ex-dividend.
Meanwhile, US markets are heading towards a shortened trading week, due to Thanksgiving next Thursday. Associated ‘Black Friday’ retail sales will be a key sentiment mover, indicating consumer mood as festive season buying officially commences.