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Market Opener – 11 Dec 2017
Local Markets Commentary
The Australian market opens a new week’s trade on positive overnight Fridayinternational equities leads, but with new data and commentary out of China since then.
Over the weekend, China reported 1.7% November CPI growth, against 1.9% for October.
November producer prices rose 5.8% year-on-year, following a 6.9% gain for October. For the month, prices rose 0.5%.
Also over the weekend, a People’s Bank of China currency committee member was quoted as predicting 6.5% - 7% 2017 China growth. He reportedly listed excess capacity, inventories and debt as challenges to maintaining similar growth rates.
In overnight Friday commodities trade, oil extended Thursday’s rally. US gold futures continued lower.
Iron ore (China port, 62% Fe) swung higher, by the same percentage it had tumbled Thursday.
LME copper continued to settle just a little higher for a third consecutive session.
The $A was kept at ~US75.10c after briefly trading at ~US75.05c early Friday evening.
Overseas Market Commentary
Major European and US equities markets headed higher overnight Friday, sentiment buoyed by some pleasing developments and data.
A breakthrough, enabling the UK and European Union officials to progress UK-EU separation negotiations on a 15-page document, had been announced early in the day (European time), buoying regional market sentiment.
In the meantime, October industrial production was reported 3.6% higher year-on-year, supported by manufacturing output, which improved 3.9%.
The trade deficit was trimmed to £10.78B from £11.25B in September.
US data releases featured monthly employment figures, which included the creation of 228,000 jobs, exceeding most forecasts by ~30,000.
Wages growth again disappointed, at 0.2% for the month (to $US26.55/hr) and 2.5% annualised. Unemployment remained steady, at 4.1%.
The University of Michigan’s initial November consumer sentiment reading represented a 1.7-point slip to 96.8.
Earlier, Germany’s October trade surplus was reported to have fallen €1.9B to €19.9B.
Imports rose 1.8% for the month, and exports fell 0.4%, each after falling 1% in September.
Tonight in the US, an October jobs opportunity report is due.
In overnight Friday corporate news, music streaming specialists Spotify and Tencent revealed they were purchasing minority holdings in each other.
Over the weekend, BAE Systems announced a £5B order from Qatar, for 24 Eurofighter Typhoon craft.
The Australian market opens a new week’s trade on positive overnight Fridayinternational equities leads, but with new data and commentary out of China since then.
Over the weekend, China reported 1.7% November CPI growth, against 1.9% for October.
November producer prices rose 5.8% year-on-year, following a 6.9% gain for October. For the month, prices rose 0.5%.
Also over the weekend, a People’s Bank of China currency committee member was quoted as predicting 6.5% - 7% 2017 China growth. He reportedly listed excess capacity, inventories and debt as challenges to maintaining similar growth rates.
In overnight Friday commodities trade, oil extended Thursday’s rally. US gold futures continued lower.
Iron ore (China port, 62% Fe) swung higher, by the same percentage it had tumbled Thursday.
LME copper continued to settle just a little higher for a third consecutive session.
The $A was kept at ~US75.10c after briefly trading at ~US75.05c early Friday evening.
Overseas Market Commentary
Major European and US equities markets headed higher overnight Friday, sentiment buoyed by some pleasing developments and data.
A breakthrough, enabling the UK and European Union officials to progress UK-EU separation negotiations on a 15-page document, had been announced early in the day (European time), buoying regional market sentiment.
In the meantime, October industrial production was reported 3.6% higher year-on-year, supported by manufacturing output, which improved 3.9%.
The trade deficit was trimmed to £10.78B from £11.25B in September.
US data releases featured monthly employment figures, which included the creation of 228,000 jobs, exceeding most forecasts by ~30,000.
Wages growth again disappointed, at 0.2% for the month (to $US26.55/hr) and 2.5% annualised. Unemployment remained steady, at 4.1%.
The University of Michigan’s initial November consumer sentiment reading represented a 1.7-point slip to 96.8.
Earlier, Germany’s October trade surplus was reported to have fallen €1.9B to €19.9B.
Imports rose 1.8% for the month, and exports fell 0.4%, each after falling 1% in September.
Tonight in the US, an October jobs opportunity report is due.
In overnight Friday corporate news, music streaming specialists Spotify and Tencent revealed they were purchasing minority holdings in each other.
Over the weekend, BAE Systems announced a £5B order from Qatar, for 24 Eurofighter Typhoon craft.