Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 14 Dec 2018
Local Markets Commentary
The Australian market opens Friday trade with new data out of China overnight, ahead of a batch of further influential data today, and with S&P/ASX quarterly indices rebalance details in hand.
Post-ASX trade yesterday, China reported a 26.3% tumble in year-on-year November foreign direct investment (FDI) to 92.11B yuan.
January – November FDI came in 1.3% lower, at 793.27B yuan ($US115.54M).
China’s November industrial production, fixed asset investment and retail sales figures are due for release 1pm AEDT.
Locally today, S&P/ASX quarterly indices rebalance lists, published this morning, will influence some trade.
In overnight commodities trade, oil rallied.
US (February) gold futures turned to settle lower.
Iron ore (China port 62% Fe) picked up the pace of Wednesday’s gain.
LME copper settled slightly higher.
The $A slipped to ~US72.20c after trading at ~US72.35c early yesterday evening.
Overseas Market Commentary
Marked choppy trade underscored skittish sentiment across major European and US equities markets overnight.
Trade relations commentary from both the US and China, including from agricultural and tech component producers, remained in focus.
The European Central Bank’s (ECB) post-policy meeting statement confirmed the end of a dedicated monthly bond purchase program come year’s end. ECB president Mario Draghi assured the bank would keep supporting regional progress, however, warning growth was slowing, along with inflation, and that political disquiet was growing.
Promises included re-investing maturing securities.
The ECB cut its 2019 and 2018 euro zone GDP growth forecasts each by 0.1% to 1.7% and 1.9% respectively.
The 2019 inflation growth forecast was also lowered by 0.1%, to 1.6%.
Among overnight data releases, US November import prices tumbled 1.6% for the month, on oil price drops, and came in 0.7% higher year-on-year.
Export prices fell 0.9% during November and rose 1.8% year-on-year.
Weekly new unemployment claims dropped 27,000, and the four-week moving average by 3750.
November Treasury budget figures revealed a record budget deficit, due to 18% higher, $US411B spending and effectively flat $US206B revenue.
This, against a $US139B November 2017 gap.
Germany’s final November CPI readings were confirmed at 0.1% growth for the month and 2.3% year-on-year. The respective figures for October were 0.2% and 2.5%.
Earlier, Italy revealed it had conceded to some European Commission (EC) concerns regarding its proposed deficit-GDP ratio following a meeting on Wednesday.
Tonight in the US, November retail sales, industrial production and business inventories are due, together with initial December PMIs.
Elsewhere, a European Council meeting is expected to prove contentious, given the UK PM’s decision to push back a parliamentary vote on European Union (EU) separation plans, pending further EU talks and potential assurances regarding timelines, including for a Republic of Ireland customs border.
In the meantime, the UK PM has pushed back a new parliamentary vote on proposed arrangements until an undisclosed January date.
The Australian market opens Friday trade with new data out of China overnight, ahead of a batch of further influential data today, and with S&P/ASX quarterly indices rebalance details in hand.
Post-ASX trade yesterday, China reported a 26.3% tumble in year-on-year November foreign direct investment (FDI) to 92.11B yuan.
January – November FDI came in 1.3% lower, at 793.27B yuan ($US115.54M).
China’s November industrial production, fixed asset investment and retail sales figures are due for release 1pm AEDT.
Locally today, S&P/ASX quarterly indices rebalance lists, published this morning, will influence some trade.
In overnight commodities trade, oil rallied.
US (February) gold futures turned to settle lower.
Iron ore (China port 62% Fe) picked up the pace of Wednesday’s gain.
LME copper settled slightly higher.
The $A slipped to ~US72.20c after trading at ~US72.35c early yesterday evening.
Overseas Market Commentary
Marked choppy trade underscored skittish sentiment across major European and US equities markets overnight.
Trade relations commentary from both the US and China, including from agricultural and tech component producers, remained in focus.
The European Central Bank’s (ECB) post-policy meeting statement confirmed the end of a dedicated monthly bond purchase program come year’s end. ECB president Mario Draghi assured the bank would keep supporting regional progress, however, warning growth was slowing, along with inflation, and that political disquiet was growing.
Promises included re-investing maturing securities.
The ECB cut its 2019 and 2018 euro zone GDP growth forecasts each by 0.1% to 1.7% and 1.9% respectively.
The 2019 inflation growth forecast was also lowered by 0.1%, to 1.6%.
Among overnight data releases, US November import prices tumbled 1.6% for the month, on oil price drops, and came in 0.7% higher year-on-year.
Export prices fell 0.9% during November and rose 1.8% year-on-year.
Weekly new unemployment claims dropped 27,000, and the four-week moving average by 3750.
November Treasury budget figures revealed a record budget deficit, due to 18% higher, $US411B spending and effectively flat $US206B revenue.
This, against a $US139B November 2017 gap.
Germany’s final November CPI readings were confirmed at 0.1% growth for the month and 2.3% year-on-year. The respective figures for October were 0.2% and 2.5%.
Earlier, Italy revealed it had conceded to some European Commission (EC) concerns regarding its proposed deficit-GDP ratio following a meeting on Wednesday.
Tonight in the US, November retail sales, industrial production and business inventories are due, together with initial December PMIs.
Elsewhere, a European Council meeting is expected to prove contentious, given the UK PM’s decision to push back a parliamentary vote on European Union (EU) separation plans, pending further EU talks and potential assurances regarding timelines, including for a Republic of Ireland customs border.
In the meantime, the UK PM has pushed back a new parliamentary vote on proposed arrangements until an undisclosed January date.