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Market Opener – 07 Feb 2019
Local Markets Commentary
The Australian market commences today’s trade following an overnight weakening of international equities sentiment, ahead public comments from the US Federal Reserve today, with new domestic data in hand and another swag of high-profile domestic companies reporting earnings.
Locally pre-trade, AiG has published a 43.1 January construction sector activity index pre-trade. This, following 42.6 for December.
NAB is due to release its December quarter business surveys report 11.30am AEDT.
The Reserve Bank of Australia (RBA) reports monthly official reserve assets post-trade.
US Federal Reserve chairman Jerome Powell speaks at a Conversation with the Chairman event 11am AEDT.
In overnight commodities trade, oil turned higher.
US gold futures (April) continued to pull back.
LME copper extended gains to three consecutive sessions. Nickel and aluminium fell.
The $A slipped to ~US71.20c, after falling to ~US71.25c early yesterday evening, and has declined further this morning.
China’s markets remain closed due to Golden Week (Lunar NY/Spring Festival holidays).
Meanwhile, Japan’s markets are heading towards a Monday public holiday weekend.
Overseas Market Commentary
Weaker, and decidedly vacillating, sentiment was demonstrated across major European and US equities markets overnight.
High-profile stocks continued to deliver mixed results and forecasts.
In the State-of-the-Union address Tuesday evening (US time; yesterday AEDT), the US president had promoted bipartisanship, repeated US requirements for any trade agreement with China, again berated the investigation into alleged Russian interference in the 2016 presidential election, and confirmed plans to meet with North Korea’s leader by month’s end.
US treasury secretary Steven Mnuchin later confirmed plans to resume US-China trade talks in Beijing next week.
These would be led by himself and key US trade ambassador Robert Lighthizer, Mr Mnuchin said.
An evening Conversation with the Chairman address by US Federal Reserve chair Jerome Powell was also anticipated, but is not scheduled until 11am AEDT (today).
In the UK, PM Theresa May faced further pressure to appease parliamentarians disquiet with certain arrangements governing the UK’s planned late-March withdrawal from the European Union (EU).
EU council president Donald Tusk reiterated the EU would not be offering any new proposals regarding arrangements for EU member Ireland’s border with the UK. Rather, Mr Tusk admonished the UK PM to come up with realistic proposals’.
Among overnight data releases, the US November trade surplus was reported 11.5% lower, at $US49.3B, due to a 2.9% drop in imports (to $US259.2B) against a 0.6% fall in exports (to $US209.9B).
Meanwhile, the US commerce department issued a new schedule for the release of keenly anticipated December quarter GDP, personal income and spending, December trade and December retail sales reports. These are promised for 28 February, 1 March, 6 March and 14 February, respectively.
Weekly mortgage applications fell 2.5% for the week, after tumbling 3% the previous week, and despite a fall in 30-year loan interest rates.
Germany’s December factory orders dropped 1.6% for the month, following a 0.2% November pullback and forecasts of a 0.3% pickup.
A January construction PMI also disappointed, falling to 50.7 from 53.3.
In Venezuela, the opposition claimed government funds in European Union banks not been able to be transferred since Monday this week.
Tonight in the US, weekly new unemployment claims and January consumer credit are due.
Elsewhere, the Bank of England holds a policy meeting, the post-meeting commentary and growth and inflation forecast updates keenly awaited.
Across the channel, a European Central Bank economic bulletin and European Commission economic forecasts, together with Germany’s December industrial production, are more keenly anticipated following a swag of disappointing growth indicators, including Germany’s factory orders reported overnight.
Companies scheduled to report earnings later today or tonight include: ArcelorMittal, Expedia, Fiat Chrysler, Intercontinental Exchange, Kellogg, Marathon Petroleum, Mattel, Motorola, News Corporation, Sanofi, Total, Twitter, Tyson Foods, Unilever and Yum! Brands.
In overnight corporate news, Snap (owns Snapchat) was propelled more than 20% higher on a smaller-than-feared December quarter loss, plus better-than-expected active users and revenue per user.
Forecasts bruised videogame stocks, but boosted the semiconductor sector.
The Australian market commences today’s trade following an overnight weakening of international equities sentiment, ahead public comments from the US Federal Reserve today, with new domestic data in hand and another swag of high-profile domestic companies reporting earnings.
Locally pre-trade, AiG has published a 43.1 January construction sector activity index pre-trade. This, following 42.6 for December.
NAB is due to release its December quarter business surveys report 11.30am AEDT.
The Reserve Bank of Australia (RBA) reports monthly official reserve assets post-trade.
US Federal Reserve chairman Jerome Powell speaks at a Conversation with the Chairman event 11am AEDT.
In overnight commodities trade, oil turned higher.
US gold futures (April) continued to pull back.
LME copper extended gains to three consecutive sessions. Nickel and aluminium fell.
The $A slipped to ~US71.20c, after falling to ~US71.25c early yesterday evening, and has declined further this morning.
China’s markets remain closed due to Golden Week (Lunar NY/Spring Festival holidays).
Meanwhile, Japan’s markets are heading towards a Monday public holiday weekend.
Overseas Market Commentary
Weaker, and decidedly vacillating, sentiment was demonstrated across major European and US equities markets overnight.
High-profile stocks continued to deliver mixed results and forecasts.
In the State-of-the-Union address Tuesday evening (US time; yesterday AEDT), the US president had promoted bipartisanship, repeated US requirements for any trade agreement with China, again berated the investigation into alleged Russian interference in the 2016 presidential election, and confirmed plans to meet with North Korea’s leader by month’s end.
US treasury secretary Steven Mnuchin later confirmed plans to resume US-China trade talks in Beijing next week.
These would be led by himself and key US trade ambassador Robert Lighthizer, Mr Mnuchin said.
An evening Conversation with the Chairman address by US Federal Reserve chair Jerome Powell was also anticipated, but is not scheduled until 11am AEDT (today).
In the UK, PM Theresa May faced further pressure to appease parliamentarians disquiet with certain arrangements governing the UK’s planned late-March withdrawal from the European Union (EU).
EU council president Donald Tusk reiterated the EU would not be offering any new proposals regarding arrangements for EU member Ireland’s border with the UK. Rather, Mr Tusk admonished the UK PM to come up with realistic proposals’.
Among overnight data releases, the US November trade surplus was reported 11.5% lower, at $US49.3B, due to a 2.9% drop in imports (to $US259.2B) against a 0.6% fall in exports (to $US209.9B).
Meanwhile, the US commerce department issued a new schedule for the release of keenly anticipated December quarter GDP, personal income and spending, December trade and December retail sales reports. These are promised for 28 February, 1 March, 6 March and 14 February, respectively.
Weekly mortgage applications fell 2.5% for the week, after tumbling 3% the previous week, and despite a fall in 30-year loan interest rates.
Germany’s December factory orders dropped 1.6% for the month, following a 0.2% November pullback and forecasts of a 0.3% pickup.
A January construction PMI also disappointed, falling to 50.7 from 53.3.
In Venezuela, the opposition claimed government funds in European Union banks not been able to be transferred since Monday this week.
Tonight in the US, weekly new unemployment claims and January consumer credit are due.
Elsewhere, the Bank of England holds a policy meeting, the post-meeting commentary and growth and inflation forecast updates keenly awaited.
Across the channel, a European Central Bank economic bulletin and European Commission economic forecasts, together with Germany’s December industrial production, are more keenly anticipated following a swag of disappointing growth indicators, including Germany’s factory orders reported overnight.
Companies scheduled to report earnings later today or tonight include: ArcelorMittal, Expedia, Fiat Chrysler, Intercontinental Exchange, Kellogg, Marathon Petroleum, Mattel, Motorola, News Corporation, Sanofi, Total, Twitter, Tyson Foods, Unilever and Yum! Brands.
In overnight corporate news, Snap (owns Snapchat) was propelled more than 20% higher on a smaller-than-feared December quarter loss, plus better-than-expected active users and revenue per user.
Forecasts bruised videogame stocks, but boosted the semiconductor sector.