Market Opener – 10 Oct 2018
Local Markets Commentary
The Australian market opens mid-week trade on mixed overnight international equities sentiment, and following an International Energy Agency (IEA) prediction China would achieve #1 natural gas importer status by year’s end.
In relatively positive overnight commodities trade, oil swung higher.
US (December) gold futures settled with a modest gain.
Iron ore (China port, 62% Fe) and LME copper and nickel rallied.
Aluminium extended this week’s run lower, but at a more moderate pace.
The $A was ultimately propelled towards US71.0c after trading at ~US70.75c early yesterday evening.
Locally today, Westpac and the Melbourne Institute publish their monthly consumer confidence report 10.30am AEDT.
Regionally, China’s September lending figures are anticipated anytime from today.
In addition, the International Monetary Fund (IMF) releases an updated international fiscal monitor report during ASX trade today, as it continues its annual meeting in Bali.
Overseas Market Commentary
Markedly choppy trade featured across major European and US equities markets overnight.
The $US traded at more than six-week peaks before swinging, oil prices turned higher again, and the US president threatened China with additional adverse trade tariffs.
Reports emerged earlier yesterday, of a particularly difficult meeting Monday between China’s foreign minister and the US Secretary of State, China concluding adverse impacts from the trade stoush would endure past the short term.
Also pre-European and US trade, the International Monetary Fund (IMF) had released a 3.7% 2018 and 2019 international economic growth forecast, the 2018 figure 0.2% lower than predicted by the IMF in April.
Moreover, the IMF highlighted poor US-China relations as a dominant threat to global economic growth, adding financing difficulties for emerging markets as another primary concern.
Ultimately, US GDP could forfeit 0.9% in 2019 and China 1.6%, pending business reactions, the IMF ventured.
Meanwhile, the US administration announced the resignation of its UN ambassador, but anticipated and promoted a return to some administrative role following ‘time off’.
In US data releases, the IBD/TIPP October economic optimism index was reported at an ~14-year high of 57.8, representing a 1.9-point rise over the past month.
Germany’s trade surplus was reported to have grown €0.7B during August, to €17.2B. Seasonally adjusted, the headline figure rose €2.4B to €18.3B.
The value of all imports fell 2.7%, against a 0.1% slip in total exports value.
In the UK, BRC reported a 0.2% year-on-year decline in September like-for-like retail sales following a 0.2% rise in August.
Total sales rose 0.7%, following a 1.3% August gain.
Tonight in the US, September producer prices and August wholesale inventories are due.
In addition, two Federal Reserve regional presidents are scheduled to speak publicly.
Among corporate expectations, new Pixel smartphones are anticipated from Google at a scheduled New York event.
BlackRock, Delta Airlines and WHSmith are among companies expected to report earnings.
In overnight corporate news, a fuel price warning from American Airlines pushed the stock more than 5% lower.
An investment bank recommendation helped Walmart to a greater than 2% gain.
The S&P 500’s PPG Industries (paint specialist) tumbled ~10% after bemoaning the impacts of rising input costs (in particular for raw materials) and reduced demand in China.