Research

Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.

Market Opener – 18 Feb 2019

 
Local Markets Commentary
The Australian market commences a new week’s trade with new data in hand from China, as domestic reporting season heats, during a US Monday public holiday weekend following ultimately largely positive overnight international equities and commodities trade, and ahead of new US-China trade talks this week. 

Post-ASX trade Friday, China confirmed its president had met with the US treasury secretary and chief negotiator in Beijing Friday, and that last week’s US-China trade talks in Beijing would resume this week in Washington this coming week, reportedly Wednesday.

Also post-ASX trade Friday, China also reported January new lending had tallied 3230B yuan, against 1080B during December.

Locally today, a weekly capital city residential property price report is due pre-trade.

A plethora of high-profile and/or large-cap domestic stocks reports earnings.

TAH trades ex-dividend. Please see p4 for details.

In overnight Friday commodities trade, oil extended last week’s gains.

US gold futures (April) broke a string of only slightly changed settlements to score another close above $US1322.0/oz.

Iron ore (China port, 62% Fe) slipped slightly.

LME copper and nickel rallied.

The $A was propelled to ~US71.40c after trading at US70.85c early Friday evening.

Overseas Market Commentary
Major European equities markets trended higher overnight Friday, while key US indices opened higher and despite some S&P 500 chop, never looked to seriously lose gains.

China’s president had announced that US-China trade talks in Beijing this past week would resume in Washington in the coming week.

China talked of some ‘consensus’ from the talks, and US spokespeople spoke of more work to be done.

China’s January CPI and producer price growth, reported earlier Friday, appeared to concern in early trade, CPI rising 0.5% for the month and PPI just 0.1%.

In the meantime, the US president announced he was making good on his vow to declare an emergency so as to secure funding for a US-Mexico border wall.

In mixed US data releases, the New York Fed manufacturing index rose to 8.8 from 3.9.

The employment component fell for a second consecutive month however, this time by 3.3 points to 4.1.

Export prices fell 0.6% during January and import prices by 0.5%, following respective 0.6% and 1% monthly falls for December.

Further, export prices were calculated 0.2% lower than a year earlier.

January industrial production pulled back 0.6% for the month, but came in 3.8% higher year-on-year.

The University of Michigan’s initial February consumer sentiment estimate improved 4.3 points to 95.5.

The euro zone’s December trade report included a €2.7B fall in the trade surplus to €17B.

In the UK, January retail sales rose 1% for the month after falling 0.7% during December.

Year-on-year, sales were 4.2% higher.

In the meantime, Spain’s government called a snap national election for 28 April.

US equities markets will remain closed tonight due to President’s Day, and no major economic indicators due for release in the UK or euro zone.

Companies scheduled to report earnings later today or tonight include: KIA Motors and Reckitt Benckiser.

In overnight Friday corporate news, PepsiCo warned planned product outlays during 2019 would likely impact earnings. 

Toy maker Mattel dropped ~18% after undercutting 2019 expectations.

Berkshire Hathaway filings revealed a December quarter selloff of Oracle holdings and a reduction in Apple investments.

NB US equities markets will be closed tonight due to a public holiday.
 
18/02/2019 7:00:00 AM

Back to top