Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 18 Oct 2018
Local Markets Commentary
The Australian market commences today’s trade on largely uninspiring overnight international equities and commodities leads, ahead of key domestic and regional data.
In overnight commodities trade, oil fell.
US (December) gold futures turned modestly lower.
Iron ore (China port, 62% Fe) rallied.
LME copper settled slightly higher, but almost flat. Aluminium turned lower and nickel continued so.
The $A was pushed towards US71.10c, after trading at US71.55c early yesterday evening.
Locally today, September employment figures, as prepared by the Australian Bureau of Statistics, are due 11.30am AEDT.
NAB also publishes its September quarter business survey report.
Regionally today, Japan is expected to release September trade balance 10.50am AEDT.
Overseas Market Commentary
Most major European and US equities markets traded lower early overnight, before chopping through sessions featuring key reports and data releases on both sides of the Atlantic.
The euro and British pound traded 0.6% and 0.5% lower respectively against the $US.
US Federal Reserve September policy meeting minutes confirmed plans for a series of rate rises in order to prevent ‘financial excess’ and inflation growth risk.
Minutes from the Bank of England’s September policy meeting also included a warning against corporate lending that posed too great a risk.
UK September CPI growth in the meantime fell to 2.4% on an annual basis, from August’s 2.7%. Ferry, meat and chocolate prices were mostly cited for the fall.
Producer prices were reported 3.1% higher, against 2.9% in August.
A final September CPI reading for the euro zone confirmed 2.1% year-on-year growth. For the month, CPI rose 0.5%.
In the meantime, a European Council meeting considering the UK’s proposals covering its 2019 scheduled separation from the European Union (EU) commenced with claims of ‘goodwill and determination’.
Among US overnight data releases, September housing starts fell 5.3%, this attributed mostly to hurricane impacts, with the year-on-year rate representing a 3.7% increase.
Building permits fell 0.6% for the month, and 1.0% year-on-year, to an ~18-month low.
Weekly mortgage applications fell to a 20-month low, as 30-year mortgage rates continued close to 5%.
Tonight in the US, weekly new unemployment claims, a Philadelphia region manufacturing index, and a Conference Board leading economic index report are due.
Companies scheduled to reveal earnings or provide updates later today or tonight include: American Express, Bank of New York Mellon, Blackstone, Ericsson, E*Trade, Novartis, PayPal, SAP, Taiwan Semiconductor and Unilever.
BAE Systems trades ex-dividend on the FTSE 100.
In overnight corporate news, Royal Dutch Shell followed up a recent Norway assets sale with plans to offload upstream assets in Denmark for almost $US1.2B, to Norwegian company Noreco.
Disappointing IBM quarterly revenue (-2.1%), reported post-US trade Tuesday, hurt the stock overnight by more than 7.5%.
Netflix also reported late-Tuesday, and as expected, gained (more than 3%) overnight on forecast-beating subscriber growth.
Auto manufacturers suffered during European trade after a Goldman Sachs warning of slowing demand in China. This followed China’s report late last week of falling vehicle sales during September.
US new home affordability was brought into question by Credit Suisse, pushing specialist retailer Home Depot lower by greater than 4%.
The Australian market commences today’s trade on largely uninspiring overnight international equities and commodities leads, ahead of key domestic and regional data.
In overnight commodities trade, oil fell.
US (December) gold futures turned modestly lower.
Iron ore (China port, 62% Fe) rallied.
LME copper settled slightly higher, but almost flat. Aluminium turned lower and nickel continued so.
The $A was pushed towards US71.10c, after trading at US71.55c early yesterday evening.
Locally today, September employment figures, as prepared by the Australian Bureau of Statistics, are due 11.30am AEDT.
NAB also publishes its September quarter business survey report.
Regionally today, Japan is expected to release September trade balance 10.50am AEDT.
Overseas Market Commentary
Most major European and US equities markets traded lower early overnight, before chopping through sessions featuring key reports and data releases on both sides of the Atlantic.
The euro and British pound traded 0.6% and 0.5% lower respectively against the $US.
US Federal Reserve September policy meeting minutes confirmed plans for a series of rate rises in order to prevent ‘financial excess’ and inflation growth risk.
Minutes from the Bank of England’s September policy meeting also included a warning against corporate lending that posed too great a risk.
UK September CPI growth in the meantime fell to 2.4% on an annual basis, from August’s 2.7%. Ferry, meat and chocolate prices were mostly cited for the fall.
Producer prices were reported 3.1% higher, against 2.9% in August.
A final September CPI reading for the euro zone confirmed 2.1% year-on-year growth. For the month, CPI rose 0.5%.
In the meantime, a European Council meeting considering the UK’s proposals covering its 2019 scheduled separation from the European Union (EU) commenced with claims of ‘goodwill and determination’.
Among US overnight data releases, September housing starts fell 5.3%, this attributed mostly to hurricane impacts, with the year-on-year rate representing a 3.7% increase.
Building permits fell 0.6% for the month, and 1.0% year-on-year, to an ~18-month low.
Weekly mortgage applications fell to a 20-month low, as 30-year mortgage rates continued close to 5%.
Tonight in the US, weekly new unemployment claims, a Philadelphia region manufacturing index, and a Conference Board leading economic index report are due.
Companies scheduled to reveal earnings or provide updates later today or tonight include: American Express, Bank of New York Mellon, Blackstone, Ericsson, E*Trade, Novartis, PayPal, SAP, Taiwan Semiconductor and Unilever.
BAE Systems trades ex-dividend on the FTSE 100.
In overnight corporate news, Royal Dutch Shell followed up a recent Norway assets sale with plans to offload upstream assets in Denmark for almost $US1.2B, to Norwegian company Noreco.
Disappointing IBM quarterly revenue (-2.1%), reported post-US trade Tuesday, hurt the stock overnight by more than 7.5%.
Netflix also reported late-Tuesday, and as expected, gained (more than 3%) overnight on forecast-beating subscriber growth.
Auto manufacturers suffered during European trade after a Goldman Sachs warning of slowing demand in China. This followed China’s report late last week of falling vehicle sales during September.
US new home affordability was brought into question by Credit Suisse, pushing specialist retailer Home Depot lower by greater than 4%.