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Market Opener – 21 Dec 2017
Local Markets Commentary
The Australian market commences today’s trade on price gains for some key commodities, but scant encouragement from overnight equities trade, ahead of a Bank of Japan policy statement this afternoon, and GDP update in the US tonight.
In overnight commodities trade, US gold futures turned moderately higher. Oil continued to gain.
Iron ore (China port, 62% Fe) extended Tuesday’s pullback, but remained above $US72.5/t.
LME copper, nickel and aluminium rallied.
The $A was contained within a comparatively narrow range after trading at ~US76.70cearly yesterday evening.
Locally today, monthly forex transactions and asset holdings are expected out of the Reserve Bank of Australia (RBA).
Regionally, the Bank of Japan releases outcomes of this week’s policy meeting 2pm AEDST.
New Zealand has this morning reported 0.6% September quarter GDP growth, and a 2.7% year-on-year rise, each figure better than anticipated.
Late yesterday, China’s administrators revealed plans to boost imports and to further contain financial system risk.
Overseas Market Commentary
Major European equities markets declined notably in late-session overnight trade, mostly attributed to holiday season positioning.
Key US equities indices settled little changed, however, with a batch of influential economic indicators yet to be released this week.
New US tax legislation has been approved by both houses of parliament (224-201; 51-48), paving the way for a 21% corporate tax rate from next month, against the current 35%.
A 5% rise in the S&P 500 index over the past six weeks has largely been attributed to anticipation of the slashed tax rates.
In new data releases, US November existing home sales were reported 5.6% higher, representing the best growth in more than 10 years.
Across the Atlantic, Bank of England governor Mark Carney warned against central bank digital currency creation for use by the general public.
He also ventured that bitcoin volatility represented no threat to global financial stability.
In the meantime, the International Monetary Fund (IMF) had reduced its 2017 UK GDP growth forecast by 0.1% to 1.6% and predicted a 1.5% rise for 2018.
Tonight in the US, a third and final estimate of September quarter GDP growth is keenly anticipated.
Weekly new unemployment claims, the Chicago Fed national activity index, a regional manufacturing index, a house price update and leading indicators report are also due.
Elsewhere, Spain’s Catalonia votes for a new government tonight.
The Australian market commences today’s trade on price gains for some key commodities, but scant encouragement from overnight equities trade, ahead of a Bank of Japan policy statement this afternoon, and GDP update in the US tonight.
In overnight commodities trade, US gold futures turned moderately higher. Oil continued to gain.
Iron ore (China port, 62% Fe) extended Tuesday’s pullback, but remained above $US72.5/t.
LME copper, nickel and aluminium rallied.
The $A was contained within a comparatively narrow range after trading at ~US76.70cearly yesterday evening.
Locally today, monthly forex transactions and asset holdings are expected out of the Reserve Bank of Australia (RBA).
Regionally, the Bank of Japan releases outcomes of this week’s policy meeting 2pm AEDST.
New Zealand has this morning reported 0.6% September quarter GDP growth, and a 2.7% year-on-year rise, each figure better than anticipated.
Late yesterday, China’s administrators revealed plans to boost imports and to further contain financial system risk.
Overseas Market Commentary
Major European equities markets declined notably in late-session overnight trade, mostly attributed to holiday season positioning.
Key US equities indices settled little changed, however, with a batch of influential economic indicators yet to be released this week.
New US tax legislation has been approved by both houses of parliament (224-201; 51-48), paving the way for a 21% corporate tax rate from next month, against the current 35%.
A 5% rise in the S&P 500 index over the past six weeks has largely been attributed to anticipation of the slashed tax rates.
In new data releases, US November existing home sales were reported 5.6% higher, representing the best growth in more than 10 years.
Across the Atlantic, Bank of England governor Mark Carney warned against central bank digital currency creation for use by the general public.
He also ventured that bitcoin volatility represented no threat to global financial stability.
In the meantime, the International Monetary Fund (IMF) had reduced its 2017 UK GDP growth forecast by 0.1% to 1.6% and predicted a 1.5% rise for 2018.
Tonight in the US, a third and final estimate of September quarter GDP growth is keenly anticipated.
Weekly new unemployment claims, the Chicago Fed national activity index, a regional manufacturing index, a house price update and leading indicators report are also due.
Elsewhere, Spain’s Catalonia votes for a new government tonight.