Market Updates 18/06/2018

ASX is shaping for a flat trading session on Monday with investors sidelined of what lies ahead in the trade dispute between US and China, with SPI flat at 6100. Little directions was giving on close of the bell in US, with Dow Jones down 0.3%, S & P down 0.1% & Nasdaq down 0.2%. In Europe, FSTE was up 1.7%, CAC down 0.5% & DAX down 0.7%.

AUDUSD continue to slide on the back of risk averse and strong US dollar last week. At the beginning on last week AUDUSD was above US $0.7600 cents and now trading around US $0.7439.

There’s no local data today and from overseas and puts investors on the sideline with a wait and see view. Investors will look for the speeches  from RBA Gov Lowe, ECB President Draghi, BOJ Gov Kuroda & Fed Chair Powell all on WednesdayOn Thursday, BOE is expecting to keep interest rate on hold at 0.5%.

DATA RELEASES THIS WEEK:

Tuesday:

EUR  – ECB President Draghi Speaks

AUD – Monetary Policy Meeting Minutes

USD – Building Permits

Wednesday:

AUD – RBA Gov Lowe Speaks

EUR – ECB President Draghi Speaks

JPY – BOJ Gov Kuroda Speaks

USD – Fed Chair Powell Speaks

Thursday:

USD – Crude Oil Inventories

NZD – GDP q/q

CHF – Libor Rate & SNB Press Confidence

GBP – MPC Official Bank Rate Votes, Monetary Policy Summary & Official Bank Rate

Friday:

GBP – BOE Gov Carney Speaks

CAD – CPI m/m & Core CPI y/y

 

Andrew Law

General Manager

D: 61 2 9993 0795

M: 0411 625 998

Overnight Market 15/06/2018

AUDUSD took another dive on the back of a stronger than expected Retail Sales number released in the US last night. The market was expecting an increase of 0.4% but in May US retail sales figures rose to 0.8%. Unemployment claims also dropped in the US to 218k in May.

Adding more pressure on AUD with recent interest rise in US to 2% from 1.75%. Local banks are being squeezed by higher borrowing costs with the increase of US Fed’s accelerated interest rates hikes. Some Analysts estimated that the spreads paid by Australian Banks could climbed by close to 40bpts and could pressure the Banks in increasing borrower’s interest rates in the near future.

Andrew Law

General Manager

D: 61 2 9993 0795

M: 0411 625 998

Market Updates 12/06/2018

Welcome back for the Queen’s birthday long weekend – SPI is currently trading up 32 points which will see a positive start to ASX this Tuesday. This is on the back of a positive end to US & major European markets, with Dow Jones up 0.2%, S & P up 0.3% & Nasdaq up 0.3%. In Europe, FSTE 100 up 0.7%, CAC up 0.4% & DAX up 0.6%.

AUDUSD is currently trading at US $0.7608 cents and have traded strongly on the back of last week’s Retail Sales numbers and an increase in the Q1 GDP numbers.  Stronger GDP numbers will provide indications of stronger than expected growth may push the RBA to gradually change its tune in the second half of the year, with improvement in risk appetite to likely keep AUDUSD afloat.

Investors will be looking for further direction when Australia unemployment numbers due out on Thursday with the market expecting 19.2k jobs created in May. US Retail Sales are also due out Thursday evening.

DATA RELEASES THIS WEEK:

Tuesday:

GBP – Average Earnings Index 3m/y

USD – CPI m/m & Core CPI m/m

Wednesday:

AUD – RBA Gov Lowe Speaks

GBP – CPI y/y

USD – PPI  m/m

Thursday:

USD – Crude Oil Inventories, FOMC Economic Projections, FOMC Statement, Retail Sales, Federal Funds Rate & FOMC Press Conference

AUD – Employment Change & Unemployment Rate

GBP – Retail Sales m/m

EUR – ECB meeting

Friday:

JPY – Monetary Policy Statement & BOJ Press Conference

 

Andrew Law

General Manager

D: 61 2 9993 0795

M: 0411 625 998

Market Updates 4/6/2018

ASX is set for positive start on Monday with SPI up 34 points to 6029. This is on the back of a strong trading session in US with Dow Jones up 0.9%, S & P up 1.1% and Nasdaq up 1.5%. Europe also had a positive close with FTSE up 0.3%, CAC up 1.2% and DAX up 1%. Global markets has been boosted by a strong US employment numbers on Friday with 223,000 jobs added and unemployment rate dropped to 3.8%, the results surpassed the market expectations.

Australia’s largest lender Commonwealth Bank has settled AUSTRAC case for $700m  almost doubling the bank’s earlier estimates of $300m. In a statement released to the ASX this morning CBA said it would pay $702.5 million to settle the matter and agreed to new breaches of the Anti-Money Laundering and Counter-Terrorism Act relating to the bank’s risk’s procedures, monitoring and customer due to diligence.

AUDUSD was down trading below US $0.7522 before its rebound to US $0.7567 on the back of non-farm payroll numbers being released on Friday and a stronger Iron Ore price jumping 1.3% to US 66.16 per tonne. Gold is down 0.4% trading around US 1,293.73 per ounce.

Local investors will be watching our GDP numbers due our on Wednesday with the market expecting an increase of 0.8% from previously quarter of 0.4%. RBA is also due to meet on Tuesday but no one is expecting the cash rate to be changed at 1.5%.

DATA RELEASES THIS WEEK:

Monday:

AUD – Retail Sales m/m

GBP – Construction PMI

Tuesday:

AUD – RBA Rate Statement

GBP – Service PMI

EUR – ECB President Draghi Speaks

Wednesday:

USD – ISM Non-Manufacturing PMI

AUD – GDP q/q

CAD – Trade Balance

Thursday:

USD – Crude Oil Inventories

AUD – Trade Balance

Friday:

CAD – Employment Change & Unemployment Rate

 

Andrew Law

General Manager

D: 61 2 9993 0795

M: 0411 625 998

Market Updates 28/05/2018

ASX is set for a lower start to Monday’s trading session with SPI down 30 points to 6007 on the back of a mixed results in US on Friday.

The Dow Jones down 0.2%, S & P down 0.2% while Nasdaq was up by 0.1%. ASX appears to be heading towards a month end close below 6000 points wiping out earlier month’s gains above 6100 points.

AUDUSD traded stronger earlier last week and has maintained it by trading around US $0.7555 cent. Good news for motorist is that Oil lost 3% so hopefully we will see this pass on at the petrol stations shortly.

Global investors will again be looking for further directions with the all important Non-Farm Payroll & Unemployment numbers due out this Friday in US. The Market is tipping for the US to have created 190,000 jobs with unemployment rate remaining steady at 3.9%.

DATA RELEASES THIS WEEK:

Tuesday:

JPY – Unemployment Rate

Wednesday:

USD – CB Consumer Confidence,  ADP Non-Farm Employment Change & Prelim GDP q/q

NDZ – RBNZ Financial Stability Report & RBNZ Gov Orr Speaks

JPY – BOJ Gov Kuroda Speaks

Thursday:

CAD – BOC Rate Statement & Overnight Rate

CHF – SNB Chairman Jordan Speaks

NZD – ANZ Business Confidence

AUD – Private Capital Expenditure q/q

Friday:

USD – Crude Oil Inventories, Average Hourly Earnings m/m, Non-Farm Employment Change , Unemployment Rate & ISM Manufacturing PMI

GBP – Manufacturing PMI

 

Andrew Law

General Manager

D: 61 2 9993 0795

M: 0411 625 998

Market Updates 21/05/2018

ASX is pointing for a lower opening with SPI currently down 30 points to 6066 on the back of weakness on Wall Street Friday with Dow Jones flat, S & P down 0.3% and Nasdaq down 0.4%.

The trade talks between US and China has weighted into the US corporate results with investors to pause on further investments. Further concerns between talks with Iran and North Korean with further new sanctions and impact on Iranian oil output and threats on North Korean leader Kim Jong Un calling off his summit talks with President Donald Trump.

AUDUSD remain steady trading at US $0.7527 cents with Gold up by 0.1% trading at US $1,292.60 per ounce. Investors will be looking for directions from talks with US Central Bank Chef Powell & BOE Gov Carney this week.

DATA RELEASES THIS WEEK:

Tuesday:

GBP – Inflation Report Hearings

Wednesday:

AUD – RBA Gov Lowe Speaks

GBP – CPI y/y

Thursday:

USD – Crude Oil Inventories & FOMC Meeting Minutes

GBP – Retail Sales m/m

EUR – ECB Monetary Policy Meeting Accounts

Friday:

GBP – BOE Gov Carney Speaks & Second Estimate GDP q/q

USD – Core Durable Goods Orders m/m & Fed Chair Powell Speaks

Andrew Law

General Manager

D: 61 2 9993 0795

M: 0411 625 998

Market Updates 14/05/2018

ASX is heading for a positive trading session on Monday with SPI up 4 points on the back of positive trading in the US. Dow Jones up 0.4%, S & P up 0.2% & Nasdaq was ended flat. US stocks indexes ended mostly higher on Friday with the market closed out its biggest weekly gain since March.

Local market Investors will be watching Thursday’s labour force report and a speech from Deputy Governor Guy Debelle on Tuesday. Further interest on the latest Australian Bureau of Statistics wage price index for the first quarter of 2018 scheduled to be released on Wednesday. Unemployment rate is also due out on Thursday with the market expecting to be unchanged at 5.5%.

Retail sales figures are due out in the US on Tuesday.

DATA RELEASES THIS WEEK:

Tuesday:

AUD – Monetary Policy Meeting Minutes

GBP – Average Earnings Index 3m/y & Inflation Hearings

USD – Core Retail Sales m/m & Retail Sales m/m

Wednesday:

AUD – Wage Price Index q/q

EUR – ECB President Draghi Speaks

USD – Building Permits

Thursday:

USD – Crude Oil Inventories

AUD – Employment Change & Unemployment Rate

NZD – Annual Budget Release

 

Friday:

CAD – CPI m/m & Core Retail Sales m/m

 

Andrew Law

General Manager

D: 61 2 9993 0795

M: 0411 625 998

Market Updates 07/05/2018

ASX is set for a positive start on Monday’s trading session with SPI up by more than 30 points on the back of strong trading session in the US. Dow Jones up by 1.4%, S & P up by 1.3% & Nasdaq up by 1.7%.

Tech shares led the way with Apple surging to a record high, Facebook gained 1.5% and Amazon gained 0.6%.

AUDUSD is trading US $0.7531 cents on the back of a strong USD. Gold has also traded strongly up 0.2% at US $1,315 per ounce. Iron Ore is down 0.9% at US $66.28 a tonne.

Local investors will be focusing on the retail sales and budget figures due out tomorrow.

DATA RELEASES THIS WEEK:

Tuesday:

AUD – Retail Sales & Annual Budget Release

NZD – Inflation Expectation q/q

USD – Fed Chair Powell Speaks

Wednesday:

USD – PPI m/m

Thursday:

USD – Crude Oil Inventories

NZD – RBNZ Monetary Policy Statement, RBNZ Rate Statement & RBNZ Press Conference

GBP – Manufacturing Production m/m, MPC Official Bank Rate Votes, Monetary Policy Summary & Official Bank Rate

USD – CPI m/m & Core CPI m/m

Friday:

CAD – Employment Change & Unemployment Rate

EUR – ECB President Draghi Speaks

 

Andrew Law

General Manager

+61 411 625 998

Market Updates 30/4/2018

ASX is shaping to have a flat opening on Monday as investors are waiting for the corporate results and RBA meeting due this week. Also global investors will be looking for Australia’s Trade Balance result due out Thursday with market tipping for an increase to 0.95b, and the all-important Non-Farm Payroll and unemployment rate due out in the US on Friday, with the market tipping for an increase in job creations of 183,000 jobs and unemployment decrease to 4%.

Mixed results on the closing of US markets on Friday. Dow Jones was down 0.1%, S & P 500 was up 0.1% with Nasdaq closed flat.

AUDUSD bounced back towards US $0.76 cents before coming down currently trading US $0.7571 cents wanted as economic growth data confirmed a shower pace in the first quarter and the yield on the US 10 year Treasury slipped to 2.96%.

DATE RELEASES THIS WEEK:

Monday:

AUD – RBA Gov Lowe Speaks

Tuesday:

AUD – RBA Rate Statement

GBP – Manufacturing PMI

CAD – GDP m/m, BOC Gov Poloz Speaks

USD – ISM Manufacturing PMI

NZD – Employment Change q/q & Unemployment Rate

Wednesday:

GBP – Construction PMI

USD – ADP Non-Farm Employment Change, Crude Oil Inventories, FOMC Statement & Federal Funds Rate

Thursday:

AUD – Trade Balance

GBP – Services PMI

CAD – Trade Balance

Friday:

USD – ISM Non-Manufacturing PMI, Average Hourly Earnings m/m, Non-Farm Employment Change & Unemployment Rate

CHF – SNB Chairman Jordan Speaks

AUD – RBA Monetary Policy Statement

Andrew Law

General Manager

0411 625 998

Market Updates 23/04/2018

ASX is pointing for a fall with SPI down by 15 points and pressure on Banks’ stocks who are facing backlash from the Royal Commission with the resignation of AMP CEO Craig Meller on Friday. This also follows a negative trading session in the US. Dow Jones down 0.8%, S & P 500 down 0.9% & Nasdaq down 1.3%.

Investors are switching their investments for US Treasury Bonds up 3%. AUDUSD also had a big  sell off after it was trading above US $0.7887 cents last week and now down trading at US $0.7659 on the back of weaker job data in Australia. Local investors will be looking for some direction from our CPI data due out on Tuesday with a short trading week in Australia with ANZAC day.

DATA RELEASES THIS WEEK:

Tuesday:

CAD – BOC Gov Poloz Speaks

AUD – CPI q/q & Trimmed Mean CPI q/q

Wednesday:

USD – CB Consumer Confidence

Thursday:

USD – Crude Oil Inventories, Core Durable Good Orders m/m

CAD – BOC Gov Poloz Speaks

EUR – Minimum Bid Rate & ECB Press Conference

Friday:

JPY – BOJ Policy Rate, Monetary Policy Statement & BOJ Outlook Report

CHF – SNB Chairman Jordan Speaks

GBP – Prelim GDP q/q

USD – Advance GDP q/q

GBP – BOE Gov Careny Speaks

Andrew Law

General Manager

0411 625 998