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Market Opener – 13 Nov 2017

Local Markets Commentary
The Australian market opens a new week’s trade on largely uninspiring leads from overnight Friday international trade and with two major domestic banks trading ex-dividend. 

Among the commodities, US gold futures retreated. Oil also turned lower. 

LME copper continued lower and nickel to drop. Iron ore (China port, 62% Fe) settled higher for a second consecutive session.

The $A ultimately barely moved after trading at ~US76.60c Friday evening, but was pushed lower this morning.

Locally today, the Australian Bureau of Statistics (ABS) publishes September lending finance figures. 

Pre-trade, a capital city residential property price report is due.

Also this morning, Reserve Bank of Australia (RBA) deputy governor Guy Debelle has told a conference that the outlook and environment for business investment in Australia are each improving.

Several large-cap stocks have also lodged presentations prepared for the same Sydney conference today.

Meanwhile, ANZ and WBC trade ex-dividend today.

Overseas Market Commentary
Major European and US equities markets mostly opened lower overnight Friday, any positive sentiment sapped by little positive change for UK-European Union separation talks and implication forecasts, and expectations promised US tax change could be further away than anticipated a year ago.

In data releases, the UK’s September trade deficit was reported at £11.25B following £12.35B for August.

Manufacturing output dropped 0.7% for the month and 2.7% year-on-year, but overall industrial production was up 0.7% for the month and 2.5% on an annual basis.

In the US, the initial University of Michigan November consumer sentiment reading disappointed, coming in at 97.8, following forecasts of an on-par 100.7. 

Tonight, several central bankers are scheduled to speak publicly. UK PM Theresa May is due to speak on foreign policy Monday evening London time.

No major international economic data releases are expected.

In overnight Friday corporate news, German-headquartered insurer Allianz lowered its full-year outlook, citing recent earthquakes, fires and hurricanes in the Americas.

In addition, Allianz revealed a 17% drop in quarterly net profit to €1.6B, stating disasters had cost €500M during the three months.

Nonetheless, the stock was supported in part by plans for a €2B share buy-back.

US retailer JC Penney exceeded quarterly sales expectations, but confirmed it was expecting 1% growth at the most for full-year same store sales. 

ArcelorMittal reported 21.4% higher, $US17.63B sales for the September quarter, against $US14.52B a year earlier. Operating profit rose 1.4% year-on-year, to $US1.92B.

Yesterday, the annual ‘Singles Day’ retail event reportedly produced billions of $US worth of sales from buyers in China.
13/11/2017 6:59:00 AM

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