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Market Opener - 17 Aug 2017

 
Local Markets Commentary

The Australian market commences today’s trade with another barrage of large-cap results, ahead of key domestic data.

July employment statistics are due 11.30am AEST.

Companies trading ex-dividend include GUD, IFL and JHG (former HGG).

Overnight, major international equities indices headed higher in unison, but in varying magnitude.

In mixed overnight commodities trade, oil fell decisively. Gold and other precious metals turned to settle higher. LME copper and other key base metals rallied in unison. Iron ore (China port 62% Fe) continued lower, but futures headed higher.

The $A was propelled to ~US79.30c after trading at ~US78.55c early yesterday evening.

Regionally today, Japan is expected to release July trade figures 9.50am AEST.

Overseas Market Commentary

Major European and US equities markets headed higher on or near opening overnight, but ultimate gains varied markedly.

There was plenty to mull.

In the US, July Federal Reserve policy meeting minutes indicated varying views on relative value in equities, the optimal timing of asset sales, inflation impacts and appropriate rate move timelines.

July housing starts and building permits fell 4.8% and 4.1% respectively for the month.

On the domestic political front, two presidential business advisory groups were disbanded following a slew of resignations.

This was seen by some as likely to further weaken expectations of the president being able to achieve legislation that would support major election promises.

Euro zone June quarter GDP grew 0.6% for the three months and 2.2% year-on-year, according to initial estimates.

June and initial July unemployment indicators encouraged in the UK.

Tonight in the US, weekly new unemployment claims are due, together with July industrial production, a regional manufacturing index and a Conference Board leading index report.

In the euro zone, European Central Bank (ECB) policy meeting minutes will be closely analysed, together with the release of CPI and trade updates.

Companies scheduled to report earnings later today and tonight include: Alibaba, Gap, Walmart and Wynn Macau.

In overnight corporate news, AP Moeller Maersk benefited from a positive shipping freight outlook, despite some hefty quarterly charges.

In the US retail sector, Target Corp and Urban Outfitters were each pushed higher on well-received outlooks and/or quarterly results that exceeded expectations.

Cisco Systems reported post-US trade, falling on a revenue warning. This could impact some of tonight's tech trade.

 
17/08/2017 7:53:05 AM

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