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Market Opener – 20 Apr 2018
Local Markets Commentary
The Australian market opens Friday trade following vacillating overnight international equities and commodities trade.
Regionally today, Japan could deliver some spark with a March CPI report at 9.30am AEST.
In overnight commodities trade, US gold futures turned moderately lower. WTI crude pulled back a little, while Brent settled higher.
Iron ore (China port, 62% Fe) forged a third consecutive gain, further picking up the pace of the latest move higher.
LME copper, nickel and aluminium settled lower.
The $A dropped to ~US77.30c after approaching US78.0c early yesterday evening.
Locally today, a business sales indicator based on card transactions is expected.
Overseas Market Commentary
Most major European and US equities markets headed lower from the outset overnight, the FTSE 100 again the exception.
Choppy trade prevailed amid currency and commodity price swings, and mixed reactions to corporate quarterly headline figures, margins and outlooks.
In US data releases, weekly new unemployment claims fell by 1000, but a decline of 3000 had been anticipated.
The Philadelphia Fed April manufacturing index rose by 0.9 to 23.2.
The Conference Board’s March leading economic index came in just 0.3 higher, at 109.0, following a 0.7 gain in February.
Across the Atlantic, UK March retail sales fell 1.2% for the month following a 0.8% gain in February. For the year, sales were 1.1% higher, against 1.5% in February.
As anticipated, Bank of England governor Mark Carney sought to confirm any rate rise was now considered not likely for May, due to ‘mixed data’.
The British pound accordingly fell against the $US, even though the governor also ventured a rate rise remained likely sometime this year.
Baker Hughes, Cleveland-Cliffs, General Electric, Honeywell, Procter & Gamble, Reckitt Benckiser, Schlumberger and Tokyo Steel are among companies scheduled to report earnings or provide updates later today and tonight.
In overnight corporate news, Japan’s Takeda reportedly finalised a bid for Ireland’s pharmaceuticals major Shire, offering £42.2B.
Meanwhile, Allergan announced it had now declined to bid for Shire, which reportedly remained unimpressed by Takeda’s latest offer. Shire stock rose more than 5%.
For its part, Procter & Gamble revealed it was outlaying $US4.2B for Germany’s Merck’s consumer healthcare division. P&G’s quarterly sales disappointed in the meantime.
Chip manufacturers suffered after an Apple supplier which makes semiconductors in Taiwan delivered a disappointing forecast based on reduced demand for smartphones.
Strong results from American Express post-US trade Wednesday pushed that stock more than 7.5% higher.
Iluka also benefited from a late-Wednesday quarterly report containing better-than-anticipated profit and a forecast of higher aluminium demand.
The S&P 500 was impacted, however, by a disappointing report from Philip Morris which subsequently dropped more than 15%.
The Australian market opens Friday trade following vacillating overnight international equities and commodities trade.
Regionally today, Japan could deliver some spark with a March CPI report at 9.30am AEST.
In overnight commodities trade, US gold futures turned moderately lower. WTI crude pulled back a little, while Brent settled higher.
Iron ore (China port, 62% Fe) forged a third consecutive gain, further picking up the pace of the latest move higher.
LME copper, nickel and aluminium settled lower.
The $A dropped to ~US77.30c after approaching US78.0c early yesterday evening.
Locally today, a business sales indicator based on card transactions is expected.
Overseas Market Commentary
Most major European and US equities markets headed lower from the outset overnight, the FTSE 100 again the exception.
Choppy trade prevailed amid currency and commodity price swings, and mixed reactions to corporate quarterly headline figures, margins and outlooks.
In US data releases, weekly new unemployment claims fell by 1000, but a decline of 3000 had been anticipated.
The Philadelphia Fed April manufacturing index rose by 0.9 to 23.2.
The Conference Board’s March leading economic index came in just 0.3 higher, at 109.0, following a 0.7 gain in February.
Across the Atlantic, UK March retail sales fell 1.2% for the month following a 0.8% gain in February. For the year, sales were 1.1% higher, against 1.5% in February.
As anticipated, Bank of England governor Mark Carney sought to confirm any rate rise was now considered not likely for May, due to ‘mixed data’.
The British pound accordingly fell against the $US, even though the governor also ventured a rate rise remained likely sometime this year.
Baker Hughes, Cleveland-Cliffs, General Electric, Honeywell, Procter & Gamble, Reckitt Benckiser, Schlumberger and Tokyo Steel are among companies scheduled to report earnings or provide updates later today and tonight.
In overnight corporate news, Japan’s Takeda reportedly finalised a bid for Ireland’s pharmaceuticals major Shire, offering £42.2B.
Meanwhile, Allergan announced it had now declined to bid for Shire, which reportedly remained unimpressed by Takeda’s latest offer. Shire stock rose more than 5%.
For its part, Procter & Gamble revealed it was outlaying $US4.2B for Germany’s Merck’s consumer healthcare division. P&G’s quarterly sales disappointed in the meantime.
Chip manufacturers suffered after an Apple supplier which makes semiconductors in Taiwan delivered a disappointing forecast based on reduced demand for smartphones.
Strong results from American Express post-US trade Wednesday pushed that stock more than 7.5% higher.
Iluka also benefited from a late-Wednesday quarterly report containing better-than-anticipated profit and a forecast of higher aluminium demand.
The S&P 500 was impacted, however, by a disappointing report from Philip Morris which subsequently dropped more than 15%.