Market Opener – 12 Oct 2017
Local Markets Commentary
The Australian market opens today’s trade on mixed commodities leads and widespread geopolitical tension.
In overnight commodities trade, US gold futures turned lower. Oil continued higher and iron ore (China port, 62% Fe) lower. LME copper added to Tuesday’s rally.
The $A remained within a narrow range after trading at ~US77.90c early yesterday evening.
Locally today, the Melbourne Institute publishes its monthly inflation expectations report midday AEDST.
August housing finance is also due 11.30am from the Australian Bureau of Statistics (ABS).
Overseas Market Commentary
Choppy and/or gyrating trade continued to feature at some stage overnight across most major European and US equities markets.
In the US, Federal Reserve September policy meeting minutes revealed conditional majority support for another rate rise ‘later this year’ but some concern over soft inflation and a mix of opinion on how to address this.
North Korea-US tension remained in consideration after the US was reported to have flown two B-1B bombers and South Korea two F-15K fighter jets across the Korean peninsula Tuesday night (local time), during air-to-ground missile drills.
The US also confirmed it had conducted regional drills with Japanese fighter jets that night.
In Spain, PM Mariano Rajoy appeared to be considering suspending the autonomy of Catalonia, in formally requesting intention clarifications from Catalan president Carles Puigdemont, Mr Rajoy asserting he needed this for potential activation of the relevant part of the national constitution.
Among data releases, 6.08M US job openings were reported for August, from July’s 17-year high of 6.14M.
Tonight in the US, weekly new unemployment claims are due, together with September producer prices, as larger stocks commence reporting for the September quarter.
Elsewhere, European Central Bank (ECB) Mario Draghi is scheduled to speak publicly, as G20 finance ministers and central bankers gather for another forum.
Companies scheduled to report earnings include Citigroup, Domino’s Pizza, HP Inc, JPMorgan Chase, Sky and WH Smith.
In overnight corporate news, Alibaba announced plans to spend $US15B on R&D over three years, launching a Discovery, Adventure, Momentum and Outlook (DAMO) ‘academy’.