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Market Opener - 26 Jun 2017

 
Local Markets Commentary

The Australian market commences the final trading week of the Australian financial year on positive key commodities leads and ahead of key late-week international data.

International equities trade largely remained unconvincing overnight Friday.

Yesterday, the Bank for International Settlements warned Australian record household debt, in addition to that of overall international debt levels, is sufficiently high to risk domestic growth.

In overnight Friday commodities trade, US gold futures continued higher and oil gained. LME copper rallied. Iron ore turned higher again, following Thursday’s single-session pullback.

The $A moved in a narrow range after trading at ~US75.6c early Friday evening.

Locally today, a weekly capital city house price report is due.


Overseas Market Commentary

Major European and US equities markets sentiment mostly diverged overnight Friday, European indices chopping amid some data disappointment, European Union – UK talks and warming election interest in Germany.

The euro zone’s initial June manufacturing PMI was estimated at 57.3, a 0.3 point rise for the month, but the services sector activity index fell 1.6 points to 54.7.

Germany’s services and manufacturing PMIs each slipped, impacting the overall euro zone composite result.

In the US, Markit’s initial June manufacturing PMI fell 0.6 to 52.1.

May new home sales were reported 2.9% higher.

Tonight in the US, May durable goods orders plus the Chicago Fed national activity and Texas region manufacturing indices are due.

US investors will continue to assess the likely progress of proposed new health care legislation, for indications of the chances of success of planned tax and other budget-related change.

A central bankers’ forum hosted by the European Central Bank (ECB) in Portugal from later today, is likely to provide plenty of varying commentary, given the environments in which some participants, including the Bank of Japan and Bank of England, operate.

In addition, a key speech from former US Federal Reserve chair Ben Bernanke is keenly anticipated.

In corporate news overnight Friday, Blackberry was pushed ~11% lower on a drop in quarterly revenue, despite this being attributed to a new strategy favouring the firm’s software division.

Across the Atlantic, the ECB effectively closed the doors on two banks headquartered in northern Italy.

Later today, Japan’s Oracle Corp is due to release full-year results.

 
26/06/2017 7:55:39 AM

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