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Market Opener – 11 Oct 2017

Local Markets Commentary
The Australian market commences mid-week trade on mostly supportive commodities trade leads, in part due to confident growth talk out of China yesterday.

Gold and oil continued decidedly higher. LME copper rallied. Iron ore fell. 

The $A slipped after appreciating to ~US77.90c early yesterday evening. 

Locally today, Westpac and the Melbourne Institute’s monthly consumer confidence report is due 11.30am AEDST.

Overseas Market Commentary
Major European and US equities markets each swung at some stage during overnight trade, amid mixed data, corporate revelations and economic outlooks.

A US small business optimism index slipped 2.3 points to 103.

IBD/TIPP’s economic optimism index fell across all components, producing a 50.3 reading against last month’s 53.4.

Germany’s trade surplus grew €2.3B in August to €21.6B, supported by as 3.1% monthly rise in exports. Imports rose 1.2%.

In the UK, the August quarter national trade deficit grew £2.9B to £10.8B.

August industrial production rose 0.2%, following a 0.3% improvement in July.

Manufacturing output rose 0.4%. 

Construction output was estimated to have fallen 0.8% during the August quarter. 

Meanwhile, the International Monetary Fund’s (IMF) latest bi-annual outlook report cut expected 2017 UK GDP by 0.3% to 1.7%.

This, against 3.6% international growth, which represented a 0.1% upwards revision.

The IMF warned however, ‘that the global recovery may not be sustainable’.

In Spain, Catalan’s leader proposed the region commence talks towards becoming a republic, rather than ‘declare’ independence in the near-term.

Tonight in the US, Federal Reserve September policy meeting minutes and a job openings report are due, together with weekly mortgage applications.

In overnight corporate news, Wal-Mart appreciated 3% on international expansion plans, cost cuts, and an expected 3% improvement sales during 2019. BAE Systems confirmed it was slashing its workforce, but by 2000 positions, twice as much as muted Monday.

Earlier, Kobe Steel admitted to providing false durability data for copper and aluminium parts shipped to clients.
11/10/2017 6:54:00 AM

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