Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Market Opener – 22 May 2019
Local Markets Commentary
The Australian market commences mid-week trade following encouraging trade talk signals from China and a swing to positive overnight US equities trade, ahead of closely-watched regional and domestic data releases.
This morning, China’s US ambassador was reported to have stated the nation was still ‘open’ to resuming trade negotiations with the US.
Also regionally today, Japan is due to publish April trade figures 9.50am AEST, amid a trio of key national reports today.
Locally, the Australian Bureau of Statistics releases its March quarter construction work report, 11.30am AEST.
Westpac and the Melbourne Institute’s monthly leading indicators report is due 10.30am.
In addition, FMG trades ex-dividend. Please see pp3-4 for a detailed list.
In mixed overnight commodities trade, WTI crude settled slightly lower and Brent higher.
US gold futures (June) turned lower.
Iron ore (China port, 62% Fe) climbed further.
LME copper continued to decline. Nickel and aluminium swung higher.
The $A approached US68.85c after trading below US68.75c early yesterday evening.
This morning, China’s US ambassador was reported to have stated the nation was still ‘open’ to resuming trade negotiations with the US.
Also regionally today, Japan is due to publish April trade figures 9.50am AEST, amid a trio of key national reports today.
Locally, the Australian Bureau of Statistics releases its March quarter construction work report, 11.30am AEST.
Westpac and the Melbourne Institute’s monthly leading indicators report is due 10.30am.
In addition, FMG trades ex-dividend. Please see pp3-4 for a detailed list.
In mixed overnight commodities trade, WTI crude settled slightly lower and Brent higher.
US gold futures (June) turned lower.
Iron ore (China port, 62% Fe) climbed further.
LME copper continued to decline. Nickel and aluminium swung higher.
The $A approached US68.85c after trading below US68.75c early yesterday evening.
Overseas Market Commentary
Notably choppy trade returned to major European equities markets overnight. Key US indices opened higher however, and overall gains never looked threatened.
Again, there was plenty to consider.
The US asserted it had deterred potential attacks from Iran, as militants in Yemen claimed responsibility for certain weaponed-drone attacks in Saudi Arabia.
In addition, the US administration announced a three-month reprieve on some restrictions for US companies doing business with China’s Huawei.
Huawei itself did not offer a positive response, however, nor did China’s ambassador for the European Union (EU).
Post Monday trade in the US, the Federal Reserve president had warned of corporate debt levels, but asserted the banking system had been positioned sufficiently to withstand any unanticipated shocks.
Overnight in the UK, the PM promised a referendum vote, should her proposed ‘bold new’ EU withdrawal plan be approved when put to a vote after parliament resumes (from a recess commencing the end of this week) 4 June.
In the meantime, the British pound traded at new five-month lows against the $US.
Overnight data releases offered little inspiration, a euro zone preliminary May consumer confidence reading improving to -6.5 from -7.3 at the end of April.
A UK industrial trends orders index dropped to -10 from -5 in April.
In the US, April existing home sales declined 0.4% for the month, following a 4.9% March tumble. Year-on-year sales were down 4.4%.
Tonight in the US, Federal Reserve 30 April – 1 May policy meeting minutes are keenly anticipated, together with weekly mortgage applications.
Elsewhere, European Central Bank (ECB) president Mario Draghi is scheduled to speak publicly.
In the UK, April CPI and public sector finances are will be closely analysed.
Further UK parliamentarian public positioning is anticipated ahead of European Parliament elections, which commence later tomorrow.
Companies due to report earnings later today or tonight include: Analog Devices, Ctrip.com, Kraft Heinz, Lowe’s, Marks & Spencer, Target and Tiffany & Co.
In overnight corporate news, select stocks in the computing component sector benefited from the US temporary easing of restrictions on doing business with Huawei.
US retailers’ fortunes proved varied, Kohl’s dropping more than 10% after cutting back guidance and reporting undershooting March quarter figures.
Home Depot pleased with better-than-feared earnings, but also disappointed with a lower-than-expected sales improvement.
NB: US and UK markets (including the LME) are heading towards a Monday public holiday weekend.
Again, there was plenty to consider.
The US asserted it had deterred potential attacks from Iran, as militants in Yemen claimed responsibility for certain weaponed-drone attacks in Saudi Arabia.
In addition, the US administration announced a three-month reprieve on some restrictions for US companies doing business with China’s Huawei.
Huawei itself did not offer a positive response, however, nor did China’s ambassador for the European Union (EU).
Post Monday trade in the US, the Federal Reserve president had warned of corporate debt levels, but asserted the banking system had been positioned sufficiently to withstand any unanticipated shocks.
Overnight in the UK, the PM promised a referendum vote, should her proposed ‘bold new’ EU withdrawal plan be approved when put to a vote after parliament resumes (from a recess commencing the end of this week) 4 June.
In the meantime, the British pound traded at new five-month lows against the $US.
Overnight data releases offered little inspiration, a euro zone preliminary May consumer confidence reading improving to -6.5 from -7.3 at the end of April.
A UK industrial trends orders index dropped to -10 from -5 in April.
In the US, April existing home sales declined 0.4% for the month, following a 4.9% March tumble. Year-on-year sales were down 4.4%.
Tonight in the US, Federal Reserve 30 April – 1 May policy meeting minutes are keenly anticipated, together with weekly mortgage applications.
Elsewhere, European Central Bank (ECB) president Mario Draghi is scheduled to speak publicly.
In the UK, April CPI and public sector finances are will be closely analysed.
Further UK parliamentarian public positioning is anticipated ahead of European Parliament elections, which commence later tomorrow.
Companies due to report earnings later today or tonight include: Analog Devices, Ctrip.com, Kraft Heinz, Lowe’s, Marks & Spencer, Target and Tiffany & Co.
In overnight corporate news, select stocks in the computing component sector benefited from the US temporary easing of restrictions on doing business with Huawei.
US retailers’ fortunes proved varied, Kohl’s dropping more than 10% after cutting back guidance and reporting undershooting March quarter figures.
Home Depot pleased with better-than-feared earnings, but also disappointed with a lower-than-expected sales improvement.
NB: US and UK markets (including the LME) are heading towards a Monday public holiday weekend.