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Market Opener – 06 Dec 2017

Local Markets Commentary
The Australian market commences mid-week trade on uninspiring overnight international equities and commodities trade, ahead of influential domestic data.

Australia’s September quarter GDP growth rate is due 11.30am AEDST.

The HIA also publishes October new home sales this morning.

In overnight commodities trade, oil swung higher. Gold futures continued to fall. Iron ore (China port, 62% Fe) turned lower, but remained above $US71.5/t. LME copper and nickel dropped. 

The $A was pushed to ~US76.10c after trading at ~76.45c early yesterday evening.

Overseas Market Commentary
Vacillating trade featured across major European and US equities markets overnight, amid US tax legislation negotiations between Senators and House of Representatives, disappointing data releases, ongoing political disquiet in the UK and US, and reports bank details associated with the US president could be sought by the alleged Russian election interference investigation.

Among economic indicator reports, the US ISM services activity index was estimated at a strong 57.4, but 60.1 was reported last month and forecasters had predicted 59.0. 

A 1.6% rise in October imports against little change for exports pushed the US trade deficit 8.6% higher to $US48.7B.

The value of January – October imports were reported 6.5% higher year-on-year and exports 5.3% higher.

Euro zone October retail sales rose 0.4% year-on-year, following 3.7% in September and forecasts of a further 1.5% gain.

In Germany, final November PMIs disappointed, the services PMI falling form 54.9 in October to 54.3 and the composite hence pushed 0. Lower to 57.3. 

In the UK, the final services PMI came in at 53.8 from 55.6 in October and against predictions of 55.0. 

Bank of England financial policy committee meeting minutes revealed considerations to further raise banking sector capital buffer requirements by a total £5B, in part to cover UK-European Union separation capital access risk. 

Tonight in the US, a private sector employment report is due, together with a productivity and labour costs update.

In overnight corporate news, Nestlé revealed plans to outlay $US2.3B for Canadian-headquartered nutritional support and supplements manufacturer Atrium Innovations.
6/12/2017 7:03:00 AM

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