Market Opener – 07 Nov 2018
Local Markets Commentary
The Australian market commences mid-week trade following overnight gains across US equities markets, as booth polling for the mid-term elections commenced.
Booths will close variously from 10am through 4pm AEDT, meaning only preliminary and partial indications will emerge during Australian trade today.
In overnight commodities trade, oil fell.
US (December) gold futures also settled lower.
Iron ore futures were reported to have dropped. Definitive Tuesday China port 62% Fe prices were unavailable, due to a Singapore public holiday.
LME copper continued lower. Nickel turned slightly higher. Aluminium fell.
The $A slipped to ~US7.25c after trading at US72.35c early yesterday evening, but has been propelled higher this morning.
Locally today, AiG is due to publish its October construction sector activity index pre-trade.
CBA has lodged a September quarter update and is hosting an AGM.
DMP and VAH are also holding AGMs.
BKW, PBP and RMD trade ex-dividend. Please see pp2-4 for detailed lists.
Regionally, China’s trade expo continues today and through the week, ahead of October trade balance and CPI reports tomorrow and Friday respectively.
Overseas Market Commentary
Choppy trade featured across major European and US equities markets overnight.
US mid-term booth polling commenced and will close in different States between 10am and 4pm AEDT today.
Late-Monday the US administration had announced US Secretary of State-led meetings with officials from both North Korea and China, tomorrow night in New York and Friday in Washington respectively.
Among US data releases, a September job openings report estimated ~7.0M job opportunities, against 7.3M in August.
A final euro zone October services PMI came in at 53.7, from 54.7 for September.
In addition, euro zone September producer prices rose 0.5% for the month and 4.5% year-on-year, following 0.4% and 4.3% gains in August.
Germany’s September factory orders rose 0.3% for the month, following a 2.5% increase in August.
The nation’s October services PMI was finalised at 54.7, down 1.2 for the month.
In the meantime, Britain’s PM Theresa May warned she would not agree to any proposed UK-European Union (EU) separation arrangements just for the sake of a deal on any particular issue.
Tonight in the US, the Federal Reserve commences a policy meeting from which outcomes will be known early Friday AEDT.
September consumer credit figures and weekly mortgage applications are also expected tonight.
Companies scheduled to reveal earnings or provide updates later today or tonight include: Adidas, BMW, Cars.com, Coca-Cola Bottling, Credit Agricole, Hermes, Hochtief, ITV, Michael Kors, INPEX, Mulberry, News Corporation, Office Depot, Qualcomm, Twenty-First Century Fox and Wynn Resorts.
In overnight corporate news, the European Commission conditionally approved the planned Walt Disney purchase of Twenty-First Century Fox’s entertainment business.