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Market Opener – 13 Feb 2018

Local Markets Commentary
The Australian market commences today’s trade on positive overnight international equities leads and mostly improved metals and energy sentiment.

Regionally, China’s foreign direct investment (FDI) figures are expected anytime from today, ahead of Thursday’s Lunar New Year. 

Yesterday evening, China reported January new lending had burgeoned to a record 2.9 trillion yuan, against 584.4B yuan for December. 

For 2017, new bank loans in China totalled 13.53 trillion yuan, 7% more than in 2016. 

Japan is due to publish January producer prices 10.50am AEDST.

In local data releases, a weekly consumer sentiment report is due pre-trade. 

The National Australia Bank publishes its monthly business survey, and the Australian Bureau of Statistics ABS) releases December lending figures, 11.30am AEDST.

Stocks trading ex-dividend today include GUD, SCG, TAH and WFD. Several other large-cap stocks have reported earnings pre-trade.

Also this morning, Reserve Bank of Australia (RBA) assistant governor Luci Ellis has publicly forecast gradual Australian wages growth, in part due to competition and rising costs.

In overnight commodities trade, US gold futures and oil swung higher, gold settling with the stronger gain.

Iron ore (China port, 62% Fe) headed a little lower for a second consecutive session. 

LME copper and nickel rallied. 

The $A was pushed to ~US78.50c after trading at US78.20c early yesterday evening, and has appreciated further this morning.

Overseas Market Commentary
Major European equities markets rallied from opening overnight, and US equities extended Friday’s gains in more decisive fashion. 

Oil and metals swung higher, supporting energy and mining stocks.

Other sectors benefited from the release of the US president’s 2019 budget proposal, which included plans for a $US200B infrastructure spend over 10 years, and $US716B for the military.

In the meantime, US 10-year sovereign bond yields reached new four-year peaks above 2.900%.

In US data releases, the monthly budget statement revealed an 11% rise in spending against tax revenue for the four months to 31 January. 

Tonight in the US, a small business optimism report is due. 

In the UK, January CPI growth is keenly anticipated following 3% and 3.1% respective year-on-year readings for December and November.

Baidu, PepsiCo, Singapore Airlines, TUI, Weibo and Yamaha Motor are among companies scheduled to report earnings or provide trading updates today or tonight.
13/02/2018 6:57:00 AM

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