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Market Opener – 10 Aug 2018

Local Markets Commentary
The Australian market commences Friday trade with few positives from overnight international trade, ahead of key data out of Japan today and the US and UK tonight. 

In overnight commodities trade, oil continued lower. 

US gold futures settled slightly down.

LME copper turned and rallied, but nickel ended this week’s positive run and aluminium ultimately also swung lower.

The $A dropped below US73.80c after falling below US74.25c early yesterday evening.

Regionally today, Japan is due to reveal June quarter GDP 9.50am AEST. July producer prices are also anticipated then.

China is expected to publish July lending figures anytime from today, but if today, post-ASX trade.

Locally today, the Reserve Bank of Australia (RBA) publishes a quarterly policy statement 11.30am AEST

At the same time, the Australian Bureau of Statistics (ABS) releases overall June lending finance.

JHG and TCL are among stocks trading ex-dividend. Details can be found on p4.

Overseas Market Commentary
Hesitant and vacillating trade featured across most major European and US equities markets overnight, key indices settling at or near session lows. 

Oil continued lower following the previous session’s drop, and a US Federal Reserve official ventured perhaps three rate rises this year.

Currencies swung, Russia’s rouble and Turkey’s lira dropping further against the $US, respectively to ~two-year and record lows, the lira down as much as 4%.

The European Central Bank (ECB) published a bulletin outlining current policy and rationale, highlighting tightening trade relationships as a risk.

US July producer prices were predicted to rise 0.2% for the month, but came in flat. The core PPI rose 0.3%, however. 

Weekly new unemployment claims defied expectations of another rise, falling by 6000 to 213,000.

A final June wholesale inventories was estimated at a 0.1% rise, from the initial ‘unchanged’ reading. May inventories grew by 0.3%.

The US treasury conducted an $US18B 30-year bond auction, yields again slipping, from ~3.7% to 3.1%. This past week, the US government has sold ~$US78B worth of debt.

Elsewhere, Pakistan was reported to have conditionally secured a $US4B loan from the Islamic Development Bank, headquartered in Jeddah, in part pending the instalment of the new PM.

Tonight in the US, July CPI and a monthly budget statement are due.

Companies scheduled to report earnings or provide an update later today and tonight include: Barclays, Daikin, Fuji, Hapag-Lloyd, JC Penney, Lloyds Bank, Mitsui Mining & Smelting and Suzuki. 

In overnight corporate news, Tesla forfeited 5% amid compliance and funding speculation regarding the founder and CEO’s announcement earlier this week that the company could go private. 

Viacom appreciated 6% after reporting better-than-anticipate quarterly profit but a 4% fall in revenue to $US3.24B.

The microchip sector suffered after a Morgan Stanley downgrade.

Meanwhile, vehicle manufacturers Mazda, Yamaha and Suzuki reportedly admitted (to regulators in Japan) ‘improper’ conduct relating to fuel economy and emissions testing.
10/08/2018 7:50:00 AM

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