The ASX 200 is up 38 points in mid-morning trade after another great US session. Healthcare & IT bounces, Materials lag. Quiet on news ahead of inflation and market closure tomorrow #ausbiz


  • Economic data – Inflation data


  • Ex-dividend – Easton Investments (EAS) 1.0c


  • US earnings – AT&T (T), Biogen (BIIB), Boeing (BA), Caterpillar (CAT), Domino’s Pizza (DPZ), Moody’s (MCO), NASDAQ (NDAQ), Stanley Black & Decker (SWK), T. Rowe Price (TROW), Tupperware (TUP), After The Close – Chipotle Mexican Grill (CMG), CoreLogic (CLGX), Facebook (FB), Microsoft (MSFT), Tesla (TSLA),Visa (V)


  • Atlas Arteria (ALX) – Toll revenue and traffic statistics. Weighted average traffic for the March 2019 quarter was unchanged on pcp whilst there was a 2.3% increase in weighted average revenue.
  • Trade Me (TME) – Anders Skoe appointed a new CEO




US EQUITIES – S&P 500 +26 (+0.88%), Dow +145 (+0.52%), NASDAQ +145 (+0.55%).

Main themes –

  • New Home Sales increase better than expected in March


  • Oil prices extend gains from yesterday: WTI crude hits $66/bbl

EUROPEAN MARKETS – Mostly higher. STOXX600 +0.23%, UK FTSE +0.85%, German DAX +0.11%, French CAC +0.20%.


  • The USD is stronger at 97.59
  • The Aussie dollar is lower at US70.97c.

BONDS – 2-yr: -4 bps to 2.35%, 3-yr: -2 bps to 2.33%, 5-yr: -3 bps to 2.36%, 10-yr: -2 bps to 2.57%, 30-yr: -1 bp to 2.98


  • Oil – WTI futures closed up a further US75c or1.1% to US$66.35 a barrel on the US crackdown on Iranian exports. The US announced over the weekend it will no longer grant sanctions waivers to any country that is currently importing Iranian oil – that could potentially wipe around 1mbpd off the market. The 8 counties affected are China and India — Iran’s biggest customers — as well as Japan, South Korea, Turkey, Italy, Greece, and Taiwan. The waivers have allowed Iran to continue exporting about 1mbpd, down from roughly 2.5 mbpd last year.
  • Gold – Futures were down US$5.10 or 0.40% to US$1,272.50 an ounce
  • Iron Ore – IRESS reports that iron ore was up US$2 to US$95.50 a tonne. CommSec reports iron ore was up US60c or 0.6% at U$94.20.
  • LME metals – Mixed. Copper -0.97%, nickel -2.03%, aluminium +0.59%


  • US economic data – Housing Price Index 0.3% (prior 0.6%); New Home Sales +4.53% to 692,000 (consensus 646,000; prior 662,000)
  • US earnings – Coca-Cola (+1.71%), United Technologies (+2.27%), Lockheed Martin (+5.66%) reported better than expected earnings. Twitter (+15.64%) rose on stronger-than-expected results and news monthly active users were 330m (estimates 318m. Procter & Gamble (-2.69%) beat estimates but shares were down. After market – Texas Instruments (-1.92 in after-hours trade), eBay (+4.55% in after hours trade)
  • Reports (WSJ) that Deutsche Bank and Commerzbank may form a bad bank
  • Chinese stimulus – Reuters reported the PBoC probably won’t cut the RRR in the near term but an easing bias is likely to remain in place.
  • Italian credit rating concerns – The yield spread between Italian and German 10-yrs hit a two-month high on speculation S&P could lower Italy’s BBB rating in Friday’s review. The speculation is being fuelled by a reduced growth forecast for 2019 and concerns about disagreements within the ruling coalition.
  • Brexit – Renewed speculation about PM Theresa May being pushed out if she does not resign by the end of June. May will reportedly bring her withdrawal bill up for another vote next week.

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