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Market Opener - 17 Jan 2017

 
Local Markets Commentary

The Australian market commences today’s trade on mixed commodities leads.

US equities markets remained closed during a public holiday. European equities markets traded lower overnight.

In overnight commodities trade, gold and oil gained. Iron ore (62% Fe, Qingdao) turned to rally again, as futures continued higher. Copper and other base metals turned lower.

The $A moved in a comparatively narrow range after trading at US74.75c early yesterday evening.

Locally pre-trade, a weekly consumer sentiment report is due.

The ABS will release November housing finance and December new vehicle sales reports 11.30am AEDST.

China’s December property prices are expected tomorrow.

Overseas Market Commentary

Major mainland European equities markets dropped on opening overnight. The FTSE chopped and swung before remaining in negative territory the last two hours of trade.

US equities markets remained closed, due to Martin Luther King Day.

In the UK, Bank of England governor Mark Carney told the London Stock Exchange that direction of the next move for domestic rates was not certain, but that inflation would rise.

The British pound notably traded below $US1.20, but this was mostly attributed to expectations of difficult UK-European negotiations.

In the euro zone, the November trade surplus was reported at €25.9B (adjusted) against €22.9B for November 2015, exports rising 6% and imports falling 5%.

The International Monetary Fund (IMF) in the meantime released a new world economic outlook, maintaining a previous forecast of 3.4% global growth for 2017, but lifting its UK estimate to 1.5%, from 1.1%.

The IMF predicted US growth of 2.3% for 2017 and 2.5% for 2018, but attached a political uncertainty rider.

China’s economy would likely grow by 6.5% during 2017, the IMF said, scrapping a previous estimate of 6.2% on expectations of continued stimulus.

Tonight in the US, a New York region manufacturing index is due.

UK PM Theresa May is due later today to unveil further plans on the proposed UK separation from the European Union.

Meanwhile, the annual World Economic Forum commences officially, also later today, in Davos, Switzerland, comments from first-time attendee, China’s president Xi Jinping, keenly anticipated.

Morgan Stanley, UnitedHealth and CSX are among companies scheduled to report earnings.

In overnight corporate news, Noble Energy revealed it was planning to acquire Clayton Williams Energy for $US2.7B.

 
17/01/2017 6:52:10 AM

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