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Market Opener - 19 Dec 2016

 
Local Markets Commentary

The Australian market opens Christmas-week trade on mixed international equities and commodities leads, ahead of influential domestic and regional announcements.

Locally today, the Australian government presents its mid-year budget update (MYEFO) midday AEDST.

The Conference Board also publishes its October leading index report.

China is due to report November property prices 12.30pm AEDST.

In Japan, November trade figures are expected, 10.50am. The Bank of Japan also commences its last policy meeting of the year. Outcomes will be announced later tomorrow.

In overnight Friday commodities trade, US gold futures and oil swung higher. Copper fell. Iron ore climbed again.

The $A has fallen below US73.0c this morning, after trading at ~US73.45c early Friday evening.

Overseas Market Commentary

Major European equities markets appeared supported by corporate activity overnight Friday. US indices waxed and waned on data, rate rise commentary and corporate reports.

Euro zone November CPI growth was confirmed at an annual 0.6%.

The October trade surplus slipped to €19.7B from €24.4B in September. Exports were reported to have fallen 5% year-on-year, and imports 3%.

In the UK, the Bank of England’s quarterly bulletin contained considerations of banking sector restructuring in the event of a broad financial crisis.

US November housing starts surprised, plunging 18.7% following a 27.4% jump in October. Building permits dropped 4.7%.

Tonight in the US, initial December Markit services and composite PMIs are due.

Federal Reserve chair Janet Yellen is also delivering a commencement address at the University of Baltimore.

In overnight Friday corporate news, BP revealed a $US2.4B deal through which the company will gain 10% of Abu Dhabi company ADCO, and via which Abu Dhabi will pick up a 2% of BP and a top-10 BP shareholder ranking. Blackrock reportedly retains 5.4% of BP.

In the US, Oracle’s quarterly revenue undershot expectations, and appeared to impact broader technology sector trade.

 
19/12/2016 7:03:06 AM

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