Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 19 Oct 2018
Local Markets Commentary
The Australian market opens Friday trade with new figures and administrative commentary out of China, ahead of a slew of further influential data today, and following negative overnight international equities sentiment.
Speaking in Europe late yesterday, China’s premier Li Keqiang predicted September quarter domestic growth would prove within a ‘reasonable range’, but acknowledged that economic pressures were increasing.
Also post-ASX trade yesterday, China reported a 2.9% year-on-year rise in September foreign direct investment (FDI), following a 2.3% August increase.
Indeed today, China is expected to publish September quarter GDP ~1pm AEDT.
September fixed asset investment, industrial production and retail sales are also due at the same time.
Also regionally today, Japan is due to report September CPI 10.30am AEDT.
Bank of Japan (BoJ) governor Haruhiko Kuroda is scheduled to speak publicly post-ASX trade.
In overnight commodities trade, oil continued to fall.
US (December) gold futures turned a little higher.
Iron ore (China port, 62% Fe) recorded a modest extension to Wednesday’s rally.
LME copper swung lower. Aluminium and nickel continued to decline.
The $A fell slightly below $US71.0c after appreciating to ~US 71.45c early yesterday evening.
Locally today, NHC and APO (suspended trade) are among companies trading ex-dividend. Please see p4 for additional stocks and details.
New Zealand’s markets will be closed Monday due to a public holiday.
Overseas Market Commentary
Major European and US equities markets opened lower overnight and largely closed at or near session lows.
None of the week’s major geopolitical scenarios had appeared to progress favourably, some corporate reporting and guidance disappointed, and economic data releases came in mixed.
China’s premier Li Keqiang confirmed growing economic pressure from US trade relations, and the German chancellor warned against rigidity in European Union – UK separation talks.
In addition, as anticipated, the European Commission robustly criticised Italy’s proposed budget, pushing the euro to this week’s lows against the $US, and propelling Italian sovereign bond yields higher.
Further, the US resurrected a threat to close the border with Mexico.
UK September retail sales were calculated 0.8% lower for the month, following a 04% August increase. Year-on-year, sales came in 3% higher, against 3.4% in August.
In the US overnight data releases, weekly new unemployment claims declined by 5000, 2000 more than forecast.
The closely-watched Philadelphia region manufacturing index slipped by 0.7 to 22.2.
Conference Board reported its leading economic index 0.5% higher for the month, following a 0.4% increase in August.
Tonight in the US, September existing home sales are due.
In addition, Bank of England (BoE) governor Mark Carney is scheduled to speak publicly in New York.
Companies expected to reveal earnings or provide updates later today or tonight include: Daimler, Honeywell, Intercontinental Hotels, Procter & Gamble, and Schlumberger.
In overnight corporate news, Germany’s software major SAP raised its full year guidance after revealing a 41% quarterly increase in cloud-based revenue.
Earlier, Taiwan Semiconductor’s quarterly sales had beaten expectations, but not forward sales guidance.
Novartis confirmed a $US2.1B deal to purchase cancer treatment specialist Endocyte.
American Express (21.7% higher, $US1.65B profit) and PayPal reported post-US trade, at the same time announcing an expanded strategic partnership, and will likely influence select trade tonight.
The Australian market opens Friday trade with new figures and administrative commentary out of China, ahead of a slew of further influential data today, and following negative overnight international equities sentiment.
Speaking in Europe late yesterday, China’s premier Li Keqiang predicted September quarter domestic growth would prove within a ‘reasonable range’, but acknowledged that economic pressures were increasing.
Also post-ASX trade yesterday, China reported a 2.9% year-on-year rise in September foreign direct investment (FDI), following a 2.3% August increase.
Indeed today, China is expected to publish September quarter GDP ~1pm AEDT.
September fixed asset investment, industrial production and retail sales are also due at the same time.
Also regionally today, Japan is due to report September CPI 10.30am AEDT.
Bank of Japan (BoJ) governor Haruhiko Kuroda is scheduled to speak publicly post-ASX trade.
In overnight commodities trade, oil continued to fall.
US (December) gold futures turned a little higher.
Iron ore (China port, 62% Fe) recorded a modest extension to Wednesday’s rally.
LME copper swung lower. Aluminium and nickel continued to decline.
The $A fell slightly below $US71.0c after appreciating to ~US 71.45c early yesterday evening.
Locally today, NHC and APO (suspended trade) are among companies trading ex-dividend. Please see p4 for additional stocks and details.
New Zealand’s markets will be closed Monday due to a public holiday.
Overseas Market Commentary
Major European and US equities markets opened lower overnight and largely closed at or near session lows.
None of the week’s major geopolitical scenarios had appeared to progress favourably, some corporate reporting and guidance disappointed, and economic data releases came in mixed.
China’s premier Li Keqiang confirmed growing economic pressure from US trade relations, and the German chancellor warned against rigidity in European Union – UK separation talks.
In addition, as anticipated, the European Commission robustly criticised Italy’s proposed budget, pushing the euro to this week’s lows against the $US, and propelling Italian sovereign bond yields higher.
Further, the US resurrected a threat to close the border with Mexico.
UK September retail sales were calculated 0.8% lower for the month, following a 04% August increase. Year-on-year, sales came in 3% higher, against 3.4% in August.
In the US overnight data releases, weekly new unemployment claims declined by 5000, 2000 more than forecast.
The closely-watched Philadelphia region manufacturing index slipped by 0.7 to 22.2.
Conference Board reported its leading economic index 0.5% higher for the month, following a 0.4% increase in August.
Tonight in the US, September existing home sales are due.
In addition, Bank of England (BoE) governor Mark Carney is scheduled to speak publicly in New York.
Companies expected to reveal earnings or provide updates later today or tonight include: Daimler, Honeywell, Intercontinental Hotels, Procter & Gamble, and Schlumberger.
In overnight corporate news, Germany’s software major SAP raised its full year guidance after revealing a 41% quarterly increase in cloud-based revenue.
Earlier, Taiwan Semiconductor’s quarterly sales had beaten expectations, but not forward sales guidance.
Novartis confirmed a $US2.1B deal to purchase cancer treatment specialist Endocyte.
American Express (21.7% higher, $US1.65B profit) and PayPal reported post-US trade, at the same time announcing an expanded strategic partnership, and will likely influence select trade tonight.