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Market Opener – 09 Aug 2018

Local Markets Commentary
The Australian market opens today’s trade on largely lacklustre overnight equities and mixed commodities leads, again ahead of key data out of China. In overnight commodities trade, oil swung lower. 

US gold futures closed slightly higher.

LME copper settled barely changed. Nickel continued higher. Aluminium turned and rallied.

The $A surpassed US74.35c after trading at ~US74.15c early yesterday evening.

China is due to report July CPI and PPI 11.30am AEST.

Locally today, MLT and RIO are among stocks trading ex-dividend today. Details can be found on p4.

This morning, New Zealand’s central bank has retained a 1.75% overnight cash rate and underscored its flexibility in either lifting or lowering rates.

Elsewhere, Singapore’s markets will remain closed today.

Overseas Market Commentary
There was plenty again for investors to consider overnight, this demonstrated by choppy, swinging trade across most major European and US equities markets. 

The FTSE remained supported by the British pound which fell further against the $US and euro.

Oil fell decisively, hurting the energy sector.

Earlier, China revealed it planned to place 25% import tariffs, commencing 23 August, on another $US16B worth of goods from the US, including fuels, medical equipment, steel products and vehicles.

Further, both China and Germany voiced opposition to US threats against others doing business with Iran.

The US administration announced plans for select sanctions against Russia, in relation to an alleged attempted poisoning assassination on UK soil. Further, it warned of further action after 90 days, pending ‘reliable assurances’ and UN inspection co-operation.

Meanwhile, the US treasury conducted a $US26B 10-year bond auction, both 10-year and 30-year yields slipping.

In scant new data releases, US weekly mortgage applications fell further, this time by 3%, in part due to higher prices.

Tonight in the US, weekly new unemployment claims, July producer prices and final June wholesale inventories are due.

In addition, the US treasury conducts an $US18B 30-year bond auction.

Elsewhere, the European Central Bank publishes a bulletin containing updated forecasts.

Companies scheduled to report earnings or provide an update later today and tonight include: Adidas, Bridgestone, Brookfield Asset Management, G4S, Inpex, Jaguar Land Rover, Macy’s, Merck, News Corporation, San Miguel Corp, Thyssenkrupp, Viacom and Worldpay.

BT Group trades ex-dividend on the FTSE 100, perhaps influencing telecommunications risk sentiment.

In overnight corporate news, high-profile stocks including Snap, Papa John’s, Tesla and Walt Disney fell on results disappointment and/or growth and, in the case of Tesla, funding and regulatory compliance speculation. 

CVS Health and drug manufacturer Mylan gained however on outlook and review news that appeared to satisfy.
9/08/2018 8:00:00 AM

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