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Market Opener – 16 Aug 2018
Local Markets Commentary
The Australian market commences today’s trade following overnight price drops for major commodities, a turn lower for US equities.
This is not all to consider, however, with another plethora of large-cap domestic stocks reporting earnings, ahead of monthly jobs figures and key data out of Japan.
The Australian Bureau of Statistics (ABS) releases the July national employment statistics 11.30am AEST.
Earlier, the Melbourne Institute publishes its monthly inflation expectations report.
Japan is scheduled to provide July trade figures 9.50am AEST.
In overnight commodities trade, oil, US gold futures and LME base metals all fell decisively.
The $A rose to ~US72.35c after trading at US72.25c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets headed lower from the outset overnight, key European indices settling at or near session lows, as geopolitical issues weighed, commodities prices tumbled and some stocks reporting earnings dropped.
The $US appreciated to a new more than 12-month peak, and the British pound traded at a new 13-month low.
Earlier, China’s yuan had traded 0.8% lower against the $US.
A Qatar promise of a $US15B investment in Turkey, helped buoy the euro and euro zone banking sector sentiment.
Turkey announced a doubling of import taxes on some US goods, including a 140% tax on alcohol, 120% on vehicles and 60% on tobacco.
Turkey’s lira subsequently traded 6% higher against the $US.
Among a swag of US data releases, July retail sales rose 0.5% for the month and 6.4% year-on-year, following a 0.2% (revised from 0.5%) monthly gain in June.
Vehicle and clothing purchases supported the latest improvement.
July industrial production rose just 0.1% for the month, supported by 0.3% higher manufacturing output.
In June, industrial output had improved 1.0%.
June quarter productivity was reported at 2.9% growth, the highest rate since the March quarter 2015.
June business inventories were up 0.1% for the month, after a 0.3% rise in May.
Meanwhile, a New York region business conditions index rose by three to 25.6.
In the UK, July CPI came in flat for the month, but 2.5% higher year-on-year against 2.4% in June and representing the first annual increase in seven months.
The increase was mostly attributed to higher public transport fares and rising prices for computer games.
Tonight in the US, July housing starts and building permits are due, together with weekly new unemployment claims and a regional manufacturing index.
Elsewhere, the UK and European Union (EU) are scheduled to officially resume negotiations in Brussels regarding arrangements for the UK’s proposed separation from the EU.
Companies due to report earnings include JC Penney, JD.com, Lenovo, Nvidia, Nordstrom and Walmart.
A plethora of stocks, including Anglo American, Aviva, HSBC, Lloyds Banking and Reckitt Benckiser, trades ex-dividend on the FTSE 100.
In overnight corporate news, US retailer Macy’s was propelled 16% lower after reporting disappointing sales.
Earlier, China’s Tencent had reported its first quarterly loss in more than a dozen years, hurt by reduced revenue from the gaming division. This, in turn, was attributed to domestic regulatory change.
Nvidia, which reports tonight, failed to benefit from a positive report from Wells Fargo.
The Australian market commences today’s trade following overnight price drops for major commodities, a turn lower for US equities.
This is not all to consider, however, with another plethora of large-cap domestic stocks reporting earnings, ahead of monthly jobs figures and key data out of Japan.
The Australian Bureau of Statistics (ABS) releases the July national employment statistics 11.30am AEST.
Earlier, the Melbourne Institute publishes its monthly inflation expectations report.
Japan is scheduled to provide July trade figures 9.50am AEST.
In overnight commodities trade, oil, US gold futures and LME base metals all fell decisively.
The $A rose to ~US72.35c after trading at US72.25c early yesterday evening.
Overseas Market Commentary
Major European and US equities markets headed lower from the outset overnight, key European indices settling at or near session lows, as geopolitical issues weighed, commodities prices tumbled and some stocks reporting earnings dropped.
The $US appreciated to a new more than 12-month peak, and the British pound traded at a new 13-month low.
Earlier, China’s yuan had traded 0.8% lower against the $US.
A Qatar promise of a $US15B investment in Turkey, helped buoy the euro and euro zone banking sector sentiment.
Turkey announced a doubling of import taxes on some US goods, including a 140% tax on alcohol, 120% on vehicles and 60% on tobacco.
Turkey’s lira subsequently traded 6% higher against the $US.
Among a swag of US data releases, July retail sales rose 0.5% for the month and 6.4% year-on-year, following a 0.2% (revised from 0.5%) monthly gain in June.
Vehicle and clothing purchases supported the latest improvement.
July industrial production rose just 0.1% for the month, supported by 0.3% higher manufacturing output.
In June, industrial output had improved 1.0%.
June quarter productivity was reported at 2.9% growth, the highest rate since the March quarter 2015.
June business inventories were up 0.1% for the month, after a 0.3% rise in May.
Meanwhile, a New York region business conditions index rose by three to 25.6.
In the UK, July CPI came in flat for the month, but 2.5% higher year-on-year against 2.4% in June and representing the first annual increase in seven months.
The increase was mostly attributed to higher public transport fares and rising prices for computer games.
Tonight in the US, July housing starts and building permits are due, together with weekly new unemployment claims and a regional manufacturing index.
Elsewhere, the UK and European Union (EU) are scheduled to officially resume negotiations in Brussels regarding arrangements for the UK’s proposed separation from the EU.
Companies due to report earnings include JC Penney, JD.com, Lenovo, Nvidia, Nordstrom and Walmart.
A plethora of stocks, including Anglo American, Aviva, HSBC, Lloyds Banking and Reckitt Benckiser, trades ex-dividend on the FTSE 100.
In overnight corporate news, US retailer Macy’s was propelled 16% lower after reporting disappointing sales.
Earlier, China’s Tencent had reported its first quarterly loss in more than a dozen years, hurt by reduced revenue from the gaming division. This, in turn, was attributed to domestic regulatory change.
Nvidia, which reports tonight, failed to benefit from a positive report from Wells Fargo.