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Market Opener – 03 Apr 2019
Local Markets Commentary
The Australian market commences mid-week trade amid a plethora of domestic budget commentary and national election influence speculation, ahead of influential regional and domestic data today, and new US-China trade talks commencing tonight in the US.
In addition, European Union members are reportedly ready to demand the UK now prepare to participate in the May European parliament elections in exchange for a further extension to the UK’s plans to separate from the EU.
Regionally today, Caixin reports its March services PMI for China, 12.45pm AEDT.
Locally, the Australian Bureau of Statistics (ABS) releases February trade balance and retail sales, each at 11.30am AEDT.
AiG publishes its March services sector activity index pre-trade.
Vehicle sales are also expected today.
ARB and SIG are among stocks trading ex-dividend today. Please see p3 for a comprehensive list.
In overnight commodities trade, oil rose for a third consecutive session.
US gold futures (June) settled slightly higher.
Iron ore (China port, 62% Fe) rallied further, approaching $US89.90/t.
LME copper and aluminium continued lower, and nickel higher, although at a more modest pace.
The $A changed relatively little after regaining some strength to trade at ~US70.75c early yesterday evening.
Overseas Market Commentary
Overnight trade across major European and US equities markets diverged, key European indices and the NASDAQ trending higher towards settlement, but the S&P 500 and DJIA almost marking time between open and close.
Geopolitical uncertainty appeared a major influence, together with mixed data releases and another economic growth warning, ahead of key indicators during the second half of the week.
Both the US administration and China’s media offered little commentary on last week’s high-level US-China trade negotiations ahead of this week’s talks, scheduled to commence in Washington tonight. China’s delegation will again be led by vice premier Liu He.
In the UK, a seven-hour cabinet meeting resulted in PM Theresa May conceding the UK would likely need the European Union (EU) to approve another extension to the UK’s withdrawal plans, to avoid separating from the EU without any agreed arrangements governing among other material considerations, customs, border security and financial system operations.
Post-northern hemisphere trade, the EU was reported to be favouring an extension that would require the UK to participate in May European parliament elections.
The weak British pound kept exporters in favour on the FTSE 100.
In the meantime, International Monetary Fund (IMF) MD Christine Lagarde flagged a downgrading of international economic growth forecasts for 2019 and 2020, ahead of the new outlook report due in association with the 12 – 14 April spring meetings of the IMF and World Bank.
Ms Lagarde cited a loss of ‘momentum’ since January, and a ‘precarious’ outlook.
In US data releases, February durable goods orders disappointed, dropping 1.6% ($US4.2B) after rising 0.1% in January, and following forecasts of an 0.8% - 1.2% fall.
An ISM New York business activity index jumped to 66.9 from 61.1, however.
Overall March vehicle sales were calculated at 17.45M from 16.57M for February.
Euro zone February producer prices rose 0.1% for the month, following a 0.3% January gain. Prices came in 3% higher year-on-year.
The UK’s March construction PMI rose by 0.2 to 49.7.
Tonight in the US, ISM’s March services sector activity index and private sector employment, plus weekly mortgage applications are due.
In overnight corporate news, China’s Tencent was reported to be trialling a cloud-based video gaming service.
Boeing pushed back the release of promised new software for the 737 MAX, due to ‘issues’.
Rolls-Royce suffered on a Boeing 787-10 grounding but Singapore Airlines due to engine component concerns.
Large vehicle manufacturers including Fiat, General Motors and Toyota reported lower US March quarter sales.
Walgreens Boots Alliance fell after undershooting quarterly profit and warning of ‘roughly flat’ 2019 profit.
Dow officially traded discretely from (the former) DowDuPont (name retained for now), rising 4.8%.
The Australian market commences mid-week trade amid a plethora of domestic budget commentary and national election influence speculation, ahead of influential regional and domestic data today, and new US-China trade talks commencing tonight in the US.
In addition, European Union members are reportedly ready to demand the UK now prepare to participate in the May European parliament elections in exchange for a further extension to the UK’s plans to separate from the EU.
Regionally today, Caixin reports its March services PMI for China, 12.45pm AEDT.
Locally, the Australian Bureau of Statistics (ABS) releases February trade balance and retail sales, each at 11.30am AEDT.
AiG publishes its March services sector activity index pre-trade.
Vehicle sales are also expected today.
ARB and SIG are among stocks trading ex-dividend today. Please see p3 for a comprehensive list.
In overnight commodities trade, oil rose for a third consecutive session.
US gold futures (June) settled slightly higher.
Iron ore (China port, 62% Fe) rallied further, approaching $US89.90/t.
LME copper and aluminium continued lower, and nickel higher, although at a more modest pace.
The $A changed relatively little after regaining some strength to trade at ~US70.75c early yesterday evening.
Overseas Market Commentary
Overnight trade across major European and US equities markets diverged, key European indices and the NASDAQ trending higher towards settlement, but the S&P 500 and DJIA almost marking time between open and close.
Geopolitical uncertainty appeared a major influence, together with mixed data releases and another economic growth warning, ahead of key indicators during the second half of the week.
Both the US administration and China’s media offered little commentary on last week’s high-level US-China trade negotiations ahead of this week’s talks, scheduled to commence in Washington tonight. China’s delegation will again be led by vice premier Liu He.
In the UK, a seven-hour cabinet meeting resulted in PM Theresa May conceding the UK would likely need the European Union (EU) to approve another extension to the UK’s withdrawal plans, to avoid separating from the EU without any agreed arrangements governing among other material considerations, customs, border security and financial system operations.
Post-northern hemisphere trade, the EU was reported to be favouring an extension that would require the UK to participate in May European parliament elections.
The weak British pound kept exporters in favour on the FTSE 100.
In the meantime, International Monetary Fund (IMF) MD Christine Lagarde flagged a downgrading of international economic growth forecasts for 2019 and 2020, ahead of the new outlook report due in association with the 12 – 14 April spring meetings of the IMF and World Bank.
Ms Lagarde cited a loss of ‘momentum’ since January, and a ‘precarious’ outlook.
In US data releases, February durable goods orders disappointed, dropping 1.6% ($US4.2B) after rising 0.1% in January, and following forecasts of an 0.8% - 1.2% fall.
An ISM New York business activity index jumped to 66.9 from 61.1, however.
Overall March vehicle sales were calculated at 17.45M from 16.57M for February.
Euro zone February producer prices rose 0.1% for the month, following a 0.3% January gain. Prices came in 3% higher year-on-year.
The UK’s March construction PMI rose by 0.2 to 49.7.
Tonight in the US, ISM’s March services sector activity index and private sector employment, plus weekly mortgage applications are due.
In overnight corporate news, China’s Tencent was reported to be trialling a cloud-based video gaming service.
Boeing pushed back the release of promised new software for the 737 MAX, due to ‘issues’.
Rolls-Royce suffered on a Boeing 787-10 grounding but Singapore Airlines due to engine component concerns.
Large vehicle manufacturers including Fiat, General Motors and Toyota reported lower US March quarter sales.
Walgreens Boots Alliance fell after undershooting quarterly profit and warning of ‘roughly flat’ 2019 profit.
Dow officially traded discretely from (the former) DowDuPont (name retained for now), rising 4.8%.