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Market Opener – 17 Sep 2018
Local Markets Commentary
The Australian market commences a new week’s trade amid China-US tariffs speculation, as southern China assesses the impacts of a major hurricane, and following new data out of China over the weekend.
China’s August property prices were reported 1.4% higher for the month, following a 1.1% rise in July, and representing the greatest proportional monthly rise since September 2016. Year-on-year, prices came in 7% higher.
In overnight Friday commodities trade, WTI crude turned to settle higher, but Brent closed slightly lower.
US (December) gold futures fell.
Iron ore (China port, 62% Fe) was reported lower.
LME copper swung lower. Aluminium fell. Nickel turned modestly higher.
The $A appreciated to ~US71.5c after rising above US72.15c early Friday evening.
Locally today, a weekly capital city residential property prices report is due pre-trade. A Conference Board leading index is also anticipated today.
Japan’s markets will remain closed today due to a public holiday.
Overseas Market Commentary
Major European and US equities markets again chopped and swung overnight Friday, multiple data and geopolitical reports combining to toy with sentiment.
Reports emerged in the US that the president was still planning this week to introduce at least some of the threatened new import taxes for Chinese goods, despite business concerns outlined during a recent public commentary period and the approach to China from the US treasury for new official trade talks.
Meanwhile, key data out of China, reported earlier Friday, prompted some speculation regarding some impacts already from US-China trade tensions.
Bank of England governor Mark Carney was reported to have told the UK parliamentary cabinet that a PM-proposed compromise plan for the UK’s separation from the European Union could deliver a £16B bounce to the economy.
The euro zone’s July trade surplus had in the meantime, been reported at €12.8B, down €3.7B for the month.
A year-to-date trade surplus with the US, was estimated at €79.3B, against €67.1B a year earlier.
Euro zone June quarter wages were reported 1.9% higher for the year.
In mixed US data releases, August retail sales rose 0.1% for the month, following forecasts of a 0.4% gain and a 0.7% rise in July, and representing the softest gain since February.
Industrial production was reported 0.4% higher, following expectations of a 0.3% increase, and a 0.4% gain for July.
Import prices dropped 0.6% for the month, following forecasts of a 0.2% decline, and a 0.1% pull back for July. The August figure represented the largest fall since early 2017, pushing year-on-year price rises from July’s 4.9% to 3.7%.
Export prices were estimated 0.1% lower for the month, after a 0.5% fall in July.
July business inventories rose 0.6%, following a 0.1% rise in June.
An initial September University of Michigan consumer sentiment reading surprised, at 100.8, 4.2 points above expectations and following a 96.2 for August.
Tonight in the US, the New York Fed monthly activity index is due.
FedEx, H&M and Oracle are scheduled to report earnings.
Alibaba Group is hosting an investor day with associated webcasts today and tomorrow.
The Australian market commences a new week’s trade amid China-US tariffs speculation, as southern China assesses the impacts of a major hurricane, and following new data out of China over the weekend.
China’s August property prices were reported 1.4% higher for the month, following a 1.1% rise in July, and representing the greatest proportional monthly rise since September 2016. Year-on-year, prices came in 7% higher.
In overnight Friday commodities trade, WTI crude turned to settle higher, but Brent closed slightly lower.
US (December) gold futures fell.
Iron ore (China port, 62% Fe) was reported lower.
LME copper swung lower. Aluminium fell. Nickel turned modestly higher.
The $A appreciated to ~US71.5c after rising above US72.15c early Friday evening.
Locally today, a weekly capital city residential property prices report is due pre-trade. A Conference Board leading index is also anticipated today.
Japan’s markets will remain closed today due to a public holiday.
Overseas Market Commentary
Major European and US equities markets again chopped and swung overnight Friday, multiple data and geopolitical reports combining to toy with sentiment.
Reports emerged in the US that the president was still planning this week to introduce at least some of the threatened new import taxes for Chinese goods, despite business concerns outlined during a recent public commentary period and the approach to China from the US treasury for new official trade talks.
Meanwhile, key data out of China, reported earlier Friday, prompted some speculation regarding some impacts already from US-China trade tensions.
Bank of England governor Mark Carney was reported to have told the UK parliamentary cabinet that a PM-proposed compromise plan for the UK’s separation from the European Union could deliver a £16B bounce to the economy.
The euro zone’s July trade surplus had in the meantime, been reported at €12.8B, down €3.7B for the month.
A year-to-date trade surplus with the US, was estimated at €79.3B, against €67.1B a year earlier.
Euro zone June quarter wages were reported 1.9% higher for the year.
In mixed US data releases, August retail sales rose 0.1% for the month, following forecasts of a 0.4% gain and a 0.7% rise in July, and representing the softest gain since February.
Industrial production was reported 0.4% higher, following expectations of a 0.3% increase, and a 0.4% gain for July.
Import prices dropped 0.6% for the month, following forecasts of a 0.2% decline, and a 0.1% pull back for July. The August figure represented the largest fall since early 2017, pushing year-on-year price rises from July’s 4.9% to 3.7%.
Export prices were estimated 0.1% lower for the month, after a 0.5% fall in July.
July business inventories rose 0.6%, following a 0.1% rise in June.
An initial September University of Michigan consumer sentiment reading surprised, at 100.8, 4.2 points above expectations and following a 96.2 for August.
Tonight in the US, the New York Fed monthly activity index is due.
FedEx, H&M and Oracle are scheduled to report earnings.
Alibaba Group is hosting an investor day with associated webcasts today and tomorrow.