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Market Opener – 08 Jul 2019

Local Markets Commentary
The Australian market opens a new week’s trade following largely uninspiring overnight Friday international equities and commodities trade, and ahead of key international data and reports from mid-week. 

Locally today, a capital city residential property price report is due pre-trade.

ANZ also publishes its June job advertisements report this morning.

In overnight Friday commodities trade, both Brent and WTI crude settled higher.

US gold futures (August) fell.

Iron ore (China port, 62% Fe) continued to pull back, but remained above $US115.0/t. Futures reportedly dropped 6.3% after the China Iron & Steel Association called for an administrative investigation into prices, ‘and supervision to maintain normal iron ore market order’.

LME copper continued lower and aluminium turned so. Nickel picked up the pace of Thursday’s gain. 

The $A fell to US69.80c after trading at US70.20c early Friday evening.

Overseas Market Commentary
Major European and US equities markets mostly fell on opening overnight Friday, but major US indices settled at or near session highs.

Headline US June employment statistics surprised on the upside, diminishing expectations of a July US Federal Reserve rate cut.

The number of new jobs came in at 224,000, ~50,000 above forecasts, and following the creation of just 72,000 jobs during May.

Wages rose 0.2% for the month, following 0.3% in May, and remained at a 3.1% annualised growth rate.

The employment participation rate rose by 0.1% to 62.9%, and unemployment rate by the same proportion, to 3.7%.

In scant other data releases, Germany’s May factory orders dropped 2.2% during May, following a 0.4% April rise. 

Tonight in the US, May consumer credit figures are due.

Elsewhere, following Friday’s data, Germany’s trade and industrial production figures are keenly anticipated tonight.

In overnight Friday corporate news, Deutsche Bank announced it was cutting 18,000 jobs over three years, and that its investment banking head would leave the group and hand over responsibilities for this division to the CEO.

The bank will close its international equities and trading businesses, and expects to report a $US3.1B June quarter net loss 24 July.

BMW revealed it needed to find a new CEO due to the current one planning to resign at the end of his first term with the company.
8/07/2019 8:00:00 AM

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