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Market Opener – 17 Jan 2019
Local Markets Commentary
The Australian market opens today’s trade following relatively positive overnight international equities and commodities trade, while political issues remained unresolved in the US and UK.
Yesterday, China’s central bank made available the equivalent of an additional $US83B (560B yuan) net for domestic lending.
In overnight commodities trade, oil added to Tuesday’s gains.
Iron ore (China port 62% Fe fines) settled higher, following an essentially flat Tuesday close.
US (February) gold futures seesawed modestly higher.
LME copper and aluminium continued higher. Nickel turned lower.
The $A retreated after trading at ~US72.05c early yesterday evening.
Locally today, the Australian Bureau of Statistics publishes November housing finance statistics 11.30am AEDT.
Both WPL and WHC have reported for the December quarter pre-trade.
CYB trades ex-dividend.
Regionally, Bank of Japan governor Haruhiko Kuroda is scheduled to speak publicly 2.20pm.
Overseas Market Commentary
Choppy trade again featured across major European and US equities markets overnight, as political, border and trade considerations continued to play out on both sides of the Atlantic.
In addition, large banking stocks reported in the US, where new administrative US-China trade talks comments, reported yesterday, indicated some disappointment.
In the UK, the PM survived a no-confidence vote (325-306) and immediately called for individual meetings with the leaders of other parties represented in parliament.
The British pound mostly held Tuesday’s gains against the $US, achieved when the UK parliament voted down the negotiated arrangements for the UK’s proposed late-March withdrawal from the European Union (EU).
Bank of England governor Mark Carney’s scheduled financial stability remarks to parliament included a market volatility warning and confirmation of the bank’s view that China’s economy was decidedly slowing, but also a reassurance the UK banking system was fit to manage any ‘disorderly’ separation from the EU.
Meanwhile, in overnight data releases, UK December CPI growth came in at 0.2% for the month and 2.1% year-on-year, following 0.2% and 2.3% respectively for November.
In the US, a Fed Reserve region-by-region economic progress report indicated falling optimism, difficulty for businesses wanting to fill employee positions, general moderate wages growth, and modest-moderate cost increases.
December import prices were reported 0.1% lower, following a 1.9% November fall. Year-on-year, prices were 0.6% lower.
Earlier, Germany’s final December CPI growth readings had been confirmed at 0.1% for the month and 1.7% year-on-year, following respective 0.1% and 2.3% November figures.
Meanwhile in Greece, the PM also survived a Macedonia-related no-confidence vote.
Tonight in the US, weekly new unemployment claims are scheduled for release, together with building permits and housing starts, plus a Philadelphia region manufacturing index.
Companies scheduled to report for the December quarter include American Express, Morgan Stanley, Netflix (post-US trade; early Friday AEDT), PPG Industries and Taiwan Semiconductor Manufacturing.
Associated British Foods and Premier Foods are among companies expected to provide trading updates.
In overnight corporate news, Goldman Sachs reported 13% lower year-on-year December quarter pre-tax profit and one per cent lower overall revenue, but the figures exceeded expectations.
Fixed income revenue dropped 18%, but sharply higher investment banking income supported total revenue.
Bank of America also supported overnight financial sector sentiment, with a quarterly profit that also came in better than anticipated.
Reckitt Benckiser’s CEO of eight years, and company employee for more than 30 years, revealed he was planning to step down from his leadership role at the end of the year.
Meanwhile, US equities markets are heading towards a Monday public holiday weekend.
The Australian market opens today’s trade following relatively positive overnight international equities and commodities trade, while political issues remained unresolved in the US and UK.
Yesterday, China’s central bank made available the equivalent of an additional $US83B (560B yuan) net for domestic lending.
In overnight commodities trade, oil added to Tuesday’s gains.
Iron ore (China port 62% Fe fines) settled higher, following an essentially flat Tuesday close.
US (February) gold futures seesawed modestly higher.
LME copper and aluminium continued higher. Nickel turned lower.
The $A retreated after trading at ~US72.05c early yesterday evening.
Locally today, the Australian Bureau of Statistics publishes November housing finance statistics 11.30am AEDT.
Both WPL and WHC have reported for the December quarter pre-trade.
CYB trades ex-dividend.
Regionally, Bank of Japan governor Haruhiko Kuroda is scheduled to speak publicly 2.20pm.
Overseas Market Commentary
Choppy trade again featured across major European and US equities markets overnight, as political, border and trade considerations continued to play out on both sides of the Atlantic.
In addition, large banking stocks reported in the US, where new administrative US-China trade talks comments, reported yesterday, indicated some disappointment.
In the UK, the PM survived a no-confidence vote (325-306) and immediately called for individual meetings with the leaders of other parties represented in parliament.
The British pound mostly held Tuesday’s gains against the $US, achieved when the UK parliament voted down the negotiated arrangements for the UK’s proposed late-March withdrawal from the European Union (EU).
Bank of England governor Mark Carney’s scheduled financial stability remarks to parliament included a market volatility warning and confirmation of the bank’s view that China’s economy was decidedly slowing, but also a reassurance the UK banking system was fit to manage any ‘disorderly’ separation from the EU.
Meanwhile, in overnight data releases, UK December CPI growth came in at 0.2% for the month and 2.1% year-on-year, following 0.2% and 2.3% respectively for November.
In the US, a Fed Reserve region-by-region economic progress report indicated falling optimism, difficulty for businesses wanting to fill employee positions, general moderate wages growth, and modest-moderate cost increases.
December import prices were reported 0.1% lower, following a 1.9% November fall. Year-on-year, prices were 0.6% lower.
Earlier, Germany’s final December CPI growth readings had been confirmed at 0.1% for the month and 1.7% year-on-year, following respective 0.1% and 2.3% November figures.
Meanwhile in Greece, the PM also survived a Macedonia-related no-confidence vote.
Tonight in the US, weekly new unemployment claims are scheduled for release, together with building permits and housing starts, plus a Philadelphia region manufacturing index.
Companies scheduled to report for the December quarter include American Express, Morgan Stanley, Netflix (post-US trade; early Friday AEDT), PPG Industries and Taiwan Semiconductor Manufacturing.
Associated British Foods and Premier Foods are among companies expected to provide trading updates.
In overnight corporate news, Goldman Sachs reported 13% lower year-on-year December quarter pre-tax profit and one per cent lower overall revenue, but the figures exceeded expectations.
Fixed income revenue dropped 18%, but sharply higher investment banking income supported total revenue.
Bank of America also supported overnight financial sector sentiment, with a quarterly profit that also came in better than anticipated.
Reckitt Benckiser’s CEO of eight years, and company employee for more than 30 years, revealed he was planning to step down from his leadership role at the end of the year.
Meanwhile, US equities markets are heading towards a Monday public holiday weekend.