Research

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Market Opener - 16 Aug 2017

 
Local Markets Commentary

The Australian market opens mid-week trade with a plethora of large-cap stocks reporting, following uninspiring overnight international equities trade and, again, mostly negative commodities leads.

Gold futures continued to pull back. Oil settled slightly higher. Iron ore (China port 62% Fe) and LME copper extended their current declines.

The $A retreated to ~US78.25c after climbing past ~US78.45c early yesterday evening.

Locally today, in addition to results from market-moving stocks, companies trading ex-dividend include CBA and SUN.

Among economic indicators, a June quarter wage cost index is due from the ABS 11.30am AEST.

The Melbourne Institute and Westpac will also publish a monthly leading indicators report.

A monthly employment indicator is also expected, ahead of tomorrow’s national July workforce statistics.

Overseas Market Commentary

June business inventories came in 0.5% higher, after forecasts of a 0.4% gain.

A home builders’ sentiment index rose four points to 68 following an eight-month low in July .

July import prices turned from two consecutive monthly falls to rise 0.1%. Export prices rose 0.4%, after falling 0.2% in June.

Tonight in the US, Federal Reserve July policy meeting minutes are due, together with housing starts and building permits.

In the euro zone, an initial June quarter GDP growth estimate is keenly anticipated, ahead of European Central Bank commentary expected at the Davos forum, scheduled to commence 24 August.

Assumption day will keep some European markets closed, and overall, due also to mid-summer, trade is likely to be lighter than usual.

Companies scheduled to report earnings later today and tonight include: Carlsberg, Cathay Pacific, Cisco Systems and Target Corp.

In overnight corporate news, Home Depot lifted its forecast and lodged a relatively robust quarterly report, but nonetheless traded ~3% lower, due to tight housing market supply.

Dick’s Sporting Goods slid 20% after figures and forecasts undershot expectations.

Meanwhile, Amazon was expected to achieve $US16B in a bond sale.

 
16/08/2017 8:25:04 AM

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