Local Markets Commentary
The Australian market opens today’s trade following an overnight tumble across US equities markets, with a major domestic bank trading ex-dividend and a closely-watched monthly business conditions and outlook report due this morning.
NAB releases its April business survey report 11.30am AEST.
A weekly consumer sentiment reading is due pre-trade.
In addition today, NAB trades ex-dividend. Please see p4 for a detailed list.
Post-ASX trade yesterday, China reported a 14.6% year-on-year drop in April vehicle sales, following a 5.2% March fall.
Industrial production, fixed asset investment and retail sales are anticipated tomorrow.
In overnight commodities trade, oil declined.
US gold futures (June) rallied.
Iron ore (China port, 62% Fe) swung lower and fell.
LME copper and nickel dropped.
The $A fell beneath US69.50c after trading at US69.80c early yesterday evening.
Overseas Market Commentary
US equities markets fell on opening overnight, dragging European indices lower, after China announced plans to increase import taxes on up to $US60B worth of US products from 1 June, the ~5100-strong list including LNG.
Several sectors and high-profile stocks promptly dropped, and oil prices turned lower.
The US president subsequently confirmed he planned to meet with China’s president at the G20 leader’s summit scheduled for late June in Japan, signalling no likely resolution to trade agreement disagreements before then.
Earlier yesterday, reports of a late-weekend attack on commercial vessels near the strategically crucial Strait of Hormuz included structural damage to two Saudi Arabia oil tankers.
No major data releases were scheduled for overnight.
Tonight in the US, import and export prices are due, together with a business optimism index.
Companies expected to report earnings later today or tonight include: Allianz, Best Inc, Casio, JGC, Merck, Nissan, Premier Foods, Ralph Lauren, Seiko,Takeda Pharmaceutical, Thyssenkrupp and Vodafone.
In overnight corporate news, Boeing suffered again, falling ~5%, after a media company in China suggested China’s new moves against US trade could in part be directed at Boeing’s business.
Apple also suffered (trade almost 6% lower) from US-China trade argy-bargy, due also to uncertainty regarding any impact on Apple earnings.
In addition, the US Supreme Court ruled a class-action could proceed against the company.
The agricultural sector, again damaged by the souring of relations, also suffered, Deere stock hurt by a quick downgrade and pushed more than 5% lower. Caterpillar forfeited more than 4.5%.
Bruised sentiment in general, apart from predicted performance, pushed Uber more than 10% lower.
Teva Pharmaceuticals plummeted 15% on allegations of broad price manipulation.