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Market Opener – 19 Oct 2017
Local Markets Commentary
The Australian market commences today’s trade ahead of a plethora of influential data out of China and monthly domestic workforce figures, and on mixed overnight international trade leads.
In overnight commodities trade, gold futures continued lower. Oil settled modestly higher. LME copper extended Tuesday’s decline. Iron ore futures fell overnight, but port prices have not officially changed, due to a public holiday in Singapore yesterday.
The $A approached US78.50c, after falling to US78.25c early yesterday evening.
China’s, September quarter GDP is anticipated 1pm AEDST.
September industrial production, retail sales and fixed asset investment are also due then.
Japan is scheduled to release September trade figures 10.50am AEDST, ahead of Sunday’s general election.
Locally today, September employment figures, as calculated by the Australian Bureau of Statistics (ABS), are due 11.30am AEDST.
NAB’s September quarter business surveying results are also due this morning.
Overseas Market Commentary
Divergence appeared across major European and US equities markets overnight, relative to recent sessions, amid currency swings, government and central bank pronouncements and September quarter corporate reporting season.
The DJIA was supported by positive sentiment for corporate stocks and tax cut commentary from US treasury secretary Steve Mnuchin, including confirmation of tax benefits for the nation’s highest earners, and a promotion of tax reform benefits for equities markets.
The euro fell as European Central Bank (ECB) president Mario Draghi opened a regional structural reforms conference espousing the ability of low rates to support fiscal reform.
The British pound was also pushed lower, broadening support for export stocks.
Earlier, China’s president Xi Jinping had promoted easier access for foreign investors and additional financial and markets reform as he opened the Communist Party’s five-yearly congress.
In US data releases, the Federal Reserve’s district-by-district economic overview ‘beige book’ confirmed hurricane impacts in three regions would impact quarterly GDP growth.
Districts also again reported difficulty in matching employment skills with jobs and partly in association, wage and inflationary pressure remained weak.
Among other economic indicators, September US housing starts and building permits fell 4.7% and 4.5% respectively.
In the UK, September unemployment claims rose and August quarter earnings were reported 2.2% higher year-on-year.
Across the channel, August euro zone construction output was reported 0.2% lower for the month and 1.6% higher on an annual basis, following 0% and 2.8% respective figures for July.
Tonight in the US, weekly new unemployment claims and a regional manufacturing index are due.
In Brussels, the European Council commences two days of meetings, the agenda including the UK’s plans to leave the European Union and security.
American Airlines, Bank of New York Mellon, Nestlé, PayPal, SAP, Unilever and Verizon are scheduled to report earnings.
In overnight corporate news, IBM’s quarterly profit and encouraging revenue suggestions, reported post-Tuesday US trade, supported the DJIA, the stock appreciating ~9%.
UK-based Reckitt Benckiser suffered on soft September quarter revenue and another sales warning.
Some health sector stocks pulled back as both US presidential and parliamentary support waned for an insurance change agreement heralded the previous session.
The Australian market commences today’s trade ahead of a plethora of influential data out of China and monthly domestic workforce figures, and on mixed overnight international trade leads.
In overnight commodities trade, gold futures continued lower. Oil settled modestly higher. LME copper extended Tuesday’s decline. Iron ore futures fell overnight, but port prices have not officially changed, due to a public holiday in Singapore yesterday.
The $A approached US78.50c, after falling to US78.25c early yesterday evening.
China’s, September quarter GDP is anticipated 1pm AEDST.
September industrial production, retail sales and fixed asset investment are also due then.
Japan is scheduled to release September trade figures 10.50am AEDST, ahead of Sunday’s general election.
Locally today, September employment figures, as calculated by the Australian Bureau of Statistics (ABS), are due 11.30am AEDST.
NAB’s September quarter business surveying results are also due this morning.
Overseas Market Commentary
Divergence appeared across major European and US equities markets overnight, relative to recent sessions, amid currency swings, government and central bank pronouncements and September quarter corporate reporting season.
The DJIA was supported by positive sentiment for corporate stocks and tax cut commentary from US treasury secretary Steve Mnuchin, including confirmation of tax benefits for the nation’s highest earners, and a promotion of tax reform benefits for equities markets.
The euro fell as European Central Bank (ECB) president Mario Draghi opened a regional structural reforms conference espousing the ability of low rates to support fiscal reform.
The British pound was also pushed lower, broadening support for export stocks.
Earlier, China’s president Xi Jinping had promoted easier access for foreign investors and additional financial and markets reform as he opened the Communist Party’s five-yearly congress.
In US data releases, the Federal Reserve’s district-by-district economic overview ‘beige book’ confirmed hurricane impacts in three regions would impact quarterly GDP growth.
Districts also again reported difficulty in matching employment skills with jobs and partly in association, wage and inflationary pressure remained weak.
Among other economic indicators, September US housing starts and building permits fell 4.7% and 4.5% respectively.
In the UK, September unemployment claims rose and August quarter earnings were reported 2.2% higher year-on-year.
Across the channel, August euro zone construction output was reported 0.2% lower for the month and 1.6% higher on an annual basis, following 0% and 2.8% respective figures for July.
Tonight in the US, weekly new unemployment claims and a regional manufacturing index are due.
In Brussels, the European Council commences two days of meetings, the agenda including the UK’s plans to leave the European Union and security.
American Airlines, Bank of New York Mellon, Nestlé, PayPal, SAP, Unilever and Verizon are scheduled to report earnings.
In overnight corporate news, IBM’s quarterly profit and encouraging revenue suggestions, reported post-Tuesday US trade, supported the DJIA, the stock appreciating ~9%.
UK-based Reckitt Benckiser suffered on soft September quarter revenue and another sales warning.
Some health sector stocks pulled back as both US presidential and parliamentary support waned for an insurance change agreement heralded the previous session.