Research

Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.

Market Opener – 14 Nov 2014

 
Local Markets Commentary
The Australian market commences today’s trade following scant overnight international equities support, ahead of influential data out of China today, and the US and Europe tonight.

China is expected to reveal October industrial production, retail sales and fixed asset investment figures 1pm AEDST

Yesterday evening (AEDST), China reported a fall in October lending (yuan basis) to a 663.2B yuan sub-forecast one-year low, in part reflecting more onerous property loan processes. In addition, corporate lending totalled 214.2B yuan, against 463.5B for September.

Overnight commodities leads are mixed.

US gold futures turned to settle moderately higher. WTI crude settled effectively flat while Brent continued to fall. Iron ore swung lower. LME copper and nickel rallied.

The $A fell beneath US76.30c after slipping below ~US76.50c early yesterday evening.

Locally today, NAB publishes its monthly business survey. 

Pre-trade, a weekly consumer sentiment index is due.

Overseas Market Commentary
Major European and US equities markets either opened lower or headed so in early overnight trade, indicating ongoing caution amid policy uncertainty on both sides of the Atlantic. In addition, news from some large corporates disappointed. 

UK PM Theresa May spoke on public policy and again promised more detail on European Union separation plans, while commentary abounded on differences between two US tax legislation plans by Senate and House Republicans, private sector calls for another look at higher-level tax proposals and the likely timing of any change.

In Zurich, Bank of Japan governor Haruhiko Kuroda confirmed his view that supportive monetary policy will be needed for some time yet. 

Earlier in Tokyo, US Federal Reserve Philadelphia president Patrick Harker had promoted a ‘lightly pencilled in’ US rate rise in December.

Tonight in the US, October CPI, producer prices and a small business optimism index are due. 

Central bankers due to speak at a European Central Bank (ECB) event tonight include: Bank of England governor Mark Carney, ECB president Mario Draghi and US Federal Reserve chair Janet Yellen. 

Companies scheduled to report interim earnings include: Aveva, Mitsubishi UFJ Financial and Vodafone.

In overnight corporate news, General Electric announced it would pay its lowest quarterly dividend in ~seven years, chopping it in half to US12c, in association with its restructure into a leaner company. GE also lowered full-year earnings guidance. The stock subsequently dropped ~7.5%.

Chip manufacturer Qualcomm officially knocked back an up to $US130B takeover offer from competitor Broadcom, citing regulatory risk and under-par value.

In the meantime, toy and game maker Mattel was propelled ~20% higher by unconfirmed talk of a recent bid from Hasbro.

Alibaba and JD.com also appreciated on their respective $US25B and $US19B worth of ‘Singles Day’ sales on the weekend.

In addition, JD.com surprised on the upside with record September quarter profit and 39% higher revenue.
 
14/11/2017 7:02:00 AM

Back to top