Market Opener – 11 Oct 2018
Local Markets Commentary
The Australian market will fall early following overnight tumbles across major international equities markets, accentuated in the US.
In overnight commodities trade, oil fell.
US (December) gold continued a little higher.
Iron ore (China port, 62% Fe) retained Tuesday’s gain, but settled flat.
LME copper and other key base metals, including nickel, were pushed lower.
The $A has been propelled higher this morning.
It traded lower again overnight, reaching ~US70.50c, after falling to ~US70.90c early yesterday evening.
Locally today, the Melbourne Institute publishes a monthly inflation expectations report, midday AEDT.
Pre-trade, Reserve Bank of Australia (RBA) assistant governor (economic) Luci Ellis was scheduled to speak at an Economic & Social Outlook conference hosted by the Melbourne Institute.
Regionally today, Japan is expected to report September producer prices and bank lending, 9.50am AEDT.
This morning, a large earthquake off the Papua New Guinea coast prompted tsunami warnings. Another significant earthquake was reported near Bali.
Overseas Market Commentary
Major European and US equities markets opened just slightly lower overnight, but ultimately tumbled to settle at or near session lows.US 10-year bond yields resumed their ascent, reaching 3.22%, tech stocks were sold down, and oil prices fell.
Both the euro and British pound rose against the $US. Meanwhile, the yen extended its run of safe-haven gains against the $US.
Among a raft of UK data releases, an August GDP estimate came in at 1.5% year-on-year growth following 1.7% in July. For the month, GDP was calculated as static.
The August trade deficit came in at £1.27B, against £0.57B in July.
August industrial production grew 1.3% year-on-year, following a 1% July gain.
In the US, September producer prices were reported to have risen 0.2%, after slipping 0.1% in August. Year-on-year, prices are 2.6% higher.
August wholesale inventories climbed 1% following a 0.6% increase for July.
Weekly mortgage applications fell 1.7%, attributed to 30-year loan rates at ~5%.
Tonight in the US, the September CPI, a monthly budget statement and weekly new unemployment claims are due.
Elsewhere, the European Central Bank (ECB) publishes the minutes of its September policy meeting.
Delta Air Lines, Nomura and Walgreens Boots Alliance are among companies expected to report earnings.
HSBC and Tesco trade ex-dividend on the FTSE 100.