MID MORNING MARKETS 30-09-19

The ASX200 is up  points in late-morning trade after a weak close to week in the US. Reports the US is considering restricting investment in China. Quiet day today ahead of RBA and Chinese golden week holidays. Energy & Materials best, IT and Financials worst. NUF result and Sth Am as sales. AMA trading halt. Q window dressing tonight?

m1m2m3TODAY

  • Ex-dividend – Briscoe Group Australasia (BGP) 7.9c, Bathurst Resources (BRL) 0.3c, CI Resources (CII) 1.5c, Eureka Group (EGH) 1.0c, Global Value Fund (GVF) 2.9c, Imdex (IMD) 1.4c, MCP Income Opportunities Trust (MOT) 3.6c, MCP Master Income Trust (MXT) 0.8c, Russell Invest Aust Select Corp Bond ETF (RCB) 10.2c, Russell Invest High Div Aust Shares ETF (RDV) 46.4c, Russell Invest Aust Govt Bond ETF (RGB) 10.5c, Russell Invest Aust Semi-Govt Bond ETF RSM) 16.9c, Stanmore Coal (SMR) 8.0c
  • Economic data – Private sector credit
  • Japanese industrial production and retail sales
  • Chinese – official Manufacturing and services PMI and Caixin manufacturing PMI

TONIGHT

  • UK – Final reading of GDP, business inventories, BofE consumer credit
  • European – unemployment rate
  • US economic data – Chicago PMI

LAST WEEK

Global markets last week – Tech stocks underperform (except Apple), UK market best globally and Gilts rally 12bp. Oil and Euro banks.

m1

Aussie markets last week – $A little changed, S&P200 outperform global peers, dragged by telcos and resources. Banks bouncing, C Disc and IT also strong, with PMV and IFL strength continuing.

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OVERNIGHT (Friday Night)

m10m11

SPI FUTURES -12

US EQUITIES – S&P500 -16 (-0.53%), Dow Jones -71 (-0.26%), NASDAQ -91 (-1.13%)

Main themes

Us is considering restricting investment in China – limiting US investors’ portfolio flows to China and delisting Chinese companies from U.S. stock exchanges.

EUROPEAN MARKETS – All higher. STOXX600 +0.47%, UK FTSE +1.02% the best performer, German DAX +0.75%, French CAC +0.36%.

CURRENCIES

  • The USD is stronger at 99.13.
  • The Aussie is a bit stronger at US67.68.

BONDS – 2-yr: -3 bps to 1.62%, 3-yr: -4 bps to 1.55%, 5-yr: -2 bps to 1.55%, 10-yr: -1 bp to 1.68%, 30-yr: UNCH at 2.12%

COMMODITIES

  • Oil – WTI futures closed down 0.9% to US$55.91. Iran claimed the US offered to remove all sanctions on Iran in exchange for negotiations, which was denied by the US.
  • Gold futures were down 0.6% at US$1,506.01 an ounce. Spot gold was down 0.4% at US$1499.22
  • Iron Ore – CommSec has iron up uS30c or 0.30% at $91.50/t.
  • LME metals – Mixed. Cu +0.74%, Ni -0.15%, Al -0.09%.

ECONOMIC DATA, NEWS & POLITICS

  • US economic data – Personal income +0.4% (as expected), personal spending +0.1% (consensus +0.3%). PCE Price Index unchanged (consensus +0.1%) to be +1.4%yoy for the fourth straight month, core PCE Price Index +0.1% (consensus +0.2%) to be 1.8%yoy (last +1.7%). Final University of Michigan’s Index for Consumer Sentiment 93.2 (consensus 92.1, preliminary 92.0, last t89.8). Durable goods orders +0.2% (consensus -1.0%), durable goods orders excluding transportation +0.5% (consensus +0.2%).
  • Fed Speak – Philadelphia Fed President Patrick Harker said the Fed may need to return to growing its balance sheet sooner than previously thought. Echoes comments from Fed Chairman, Jay Powell, near the end of his most recent press conference.
  • Markets in China closed October 1-7, Hong Kong’s Hang Seng closed on Tuesday, October 1 and Monday, October 7.
  • Chinese data – August Industrial Profit -2.0%yoy (last 2.6%).
  • Bank of England’s Michael Saunders said that a rate cut could be needed regardless of the presence of a Brexit deal.
  • European data – September Business and Consumer Survey 101.7 (expected 103.0, last 103.1) to its lowest level since early 2015; Italian Business Confidence 98.8 (expected 100.0, last 99.6) and Consumer Confidence 112.2 (expected 112.6, last 111.9).

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