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Market Opener – 22 Oct 2018
Local Markets Commentary
The Australian market commences a new week’s trade amid domestic political turbulence, with new data out of China over the weekend, together with a fall in US equities futures this morning, and following mixed overnight Friday international equities and commodities trade.
Over the weekend, a by-election in the immediate past Australian PM’s electorate delivered a notable swing against his political party, sufficient to likely strip the government of its majority and install another independent in parliament.
Also over the weekend, China’s September new residential property prices were reported 0.9% higher for the month, against a 1.4% August increase. Year-on-year, prices in the 70 major cities surveyed rose 7.9%.
Locally today, a weekly capital city residential property price report is due pre-trade.
Reserve Bank of Australia (RBA) deputy governor Guy Debelle will offer remarks at a Walkley awards business journalism finalists’ event in Sydney at 1pm AEDT.
Dr Debelle is scheduled to speak publicly at two events tomorrow.
In overnight Friday commodities trade, oil turned higher.
US (December) gold futures settled slightly lower.
Iron ore (China port, 62% Fe) fell modestly. Spot prices reportedly declined 1.1%.
LME copper and nickel swung higher. Aluminium continued to fall.
The $A approached US71.20c after trading at ~US71.10c early Friday evening.
Overseas Market Commentary
Vacillating sentiment featured across major European and US equities markets through overnight Friday trade, amid little new economic data, a plethora of international economic growth speculation and ongoing mixed corporate reporting.
Earlier on Friday, China’s central bank governor and administrative officials had assured they retained adequate means to support economic growth.
Commentary regarding the near- and medium-term prospects for several economies, including nonetheless China, Italy and Saudi Arabia proved in no short supply during overnight Friday trade however.
Bank of England (BoE) governor Mark Carney in the meantime declared the UK financial sector was sufficiently prepared for a worse separation from the European Union (EU) than what some are anticipating.
In addition, though, Dr Carney offered that, while he was anticipating a ‘smooth transition’, he continued to be concerned EU preparations remained inadequate.
The UK featured among overnight Friday data releases, public sector borrowing coming in at an 11-year September low of £4.1B, down £0.8B from September 2017.
For the year-to-date, borrowing tallied £19.9B, against £30.6B a year earlier.
In the US, September existing home sales were reported 1.6% lower for the month, at the least since November 2015. Year-on-year, sales had dropped 3.4%, but this was mostly attributed to higher mortgage rates and fewer homes available for sale.
Tonight in the US, the Chicago Fed September national activity index is due.
Elsewhere, Germany’s central bank (Bundesbank) publishes its monthly report.
Companies scheduled to reveal earnings or provide updates later today or tonight include: Halliburton, Hasbro, Kimberly-Clark, Philips Electronics and Ryanair.
The Australian market commences a new week’s trade amid domestic political turbulence, with new data out of China over the weekend, together with a fall in US equities futures this morning, and following mixed overnight Friday international equities and commodities trade.
Over the weekend, a by-election in the immediate past Australian PM’s electorate delivered a notable swing against his political party, sufficient to likely strip the government of its majority and install another independent in parliament.
Also over the weekend, China’s September new residential property prices were reported 0.9% higher for the month, against a 1.4% August increase. Year-on-year, prices in the 70 major cities surveyed rose 7.9%.
Locally today, a weekly capital city residential property price report is due pre-trade.
Reserve Bank of Australia (RBA) deputy governor Guy Debelle will offer remarks at a Walkley awards business journalism finalists’ event in Sydney at 1pm AEDT.
Dr Debelle is scheduled to speak publicly at two events tomorrow.
In overnight Friday commodities trade, oil turned higher.
US (December) gold futures settled slightly lower.
Iron ore (China port, 62% Fe) fell modestly. Spot prices reportedly declined 1.1%.
LME copper and nickel swung higher. Aluminium continued to fall.
The $A approached US71.20c after trading at ~US71.10c early Friday evening.
Overseas Market Commentary
Vacillating sentiment featured across major European and US equities markets through overnight Friday trade, amid little new economic data, a plethora of international economic growth speculation and ongoing mixed corporate reporting.
Earlier on Friday, China’s central bank governor and administrative officials had assured they retained adequate means to support economic growth.
Commentary regarding the near- and medium-term prospects for several economies, including nonetheless China, Italy and Saudi Arabia proved in no short supply during overnight Friday trade however.
Bank of England (BoE) governor Mark Carney in the meantime declared the UK financial sector was sufficiently prepared for a worse separation from the European Union (EU) than what some are anticipating.
In addition, though, Dr Carney offered that, while he was anticipating a ‘smooth transition’, he continued to be concerned EU preparations remained inadequate.
The UK featured among overnight Friday data releases, public sector borrowing coming in at an 11-year September low of £4.1B, down £0.8B from September 2017.
For the year-to-date, borrowing tallied £19.9B, against £30.6B a year earlier.
In the US, September existing home sales were reported 1.6% lower for the month, at the least since November 2015. Year-on-year, sales had dropped 3.4%, but this was mostly attributed to higher mortgage rates and fewer homes available for sale.
Tonight in the US, the Chicago Fed September national activity index is due.
Elsewhere, Germany’s central bank (Bundesbank) publishes its monthly report.
Companies scheduled to reveal earnings or provide updates later today or tonight include: Halliburton, Hasbro, Kimberly-Clark, Philips Electronics and Ryanair.