Morning Market Update - 13 March 2018

Pre-Open Data


Key Data for the Week

Key economic data released this week:

  • Tuesday – AUS – NAB Business Confidence & Conditions
  • Tuesday – US – Consumer Price Index
  • Wednesday – EUR – Industrial Production
  • Wednesday – US – Retail Sales

Australian Market


The Australian sharemarket closed 0.6% higher yesterday, led by the Energy and Materials sectors.

BHP and Rio Tinto shook off a 2.5% slide in iron ore prices on Friday, following US steel tariffs and oversupply in China, to rebound from recent losses, closing up 2.1% and 2.3% respectively. BlueScope lifted 3.7%, following news Australia will become the third country exempt of US tariffs, and, along with Rio Tinto, are expected to emerge as the big winners of Australia’s exemption from US steel and aluminium tariffs.

The big four banks all ended the session higher once again; NAB gained 0.4%, while ANZ, Commonwealth Bank and Westpac each added 0.6%.

Newcrest slumped 4.6%, after announcing it expects to downgrade full year production and cost guidance, following the shutdown of its Cadia goldmine for the second time in less than a year. Production at Newcrest’s largest mine was halted following a breach at a tailings dam, however, the cost involved is not yet known.

The Australian futures market points to a 0.05% rise today.

Overseas Market 

European sharemarkets were mixed on Monday. The STOXX utility index rose 1.1% on news of an overhaul of the German utilities industry. Automakers rose 0.4%, while basic resources lost 0.2% in response. The STOXX Europe 600 climbed 0.2% and the German DAX lifted 0.6%, while the UK FTSE 100 slid 0.1%.

US sharemarkets were mixed on Monday, as President Trump’s tariff plans continued to weigh on Industrials stocks. However, Technology stocks were boosted by broker upgrades. The Dow Jones fell 0.6% and the S&P 500 slipped 0.1%, while the NASDAQ rose 0.4%, to close at a fresh record high.

CNIS Perspective 

On Friday night the US released its February US Payroll figures, and what a difference a month makes!

Volatility rose sharply, and markets sold off aggressively last month, after January's payrolls report showed average hourly earnings rose 2.8% annually, the biggest gain since June 2009, sparking fears of an inflation surge and subsequent pressure on the Federal Reserve to raise interest rates more aggressively than they had planned.

February payrolls rose by 313,000, beating consensus expectations for a 205,000 increase. However, as a contrast to last month, the surge in job creation came without an accompanying rise in wage pressures, with annual growth in average hourly earnings easing to 2.6% in February, from 2.8% in January.

With a spike in wage growth absent from this month’s report, the Federal Reserve appears able to maintain its pace of consistent, but gradual, rate hikes across 2018, avoiding the concerns that arose last month.


Contact Us

Should you wish to discuss this or any other Investment related matter, please contact our Investment Services Team on (02) 4928 8500.


The material contained in this publication is in the nature of general comment only, and neither purports, nor is intended to be advice on any particular matter.  Persons should not act or rely upon any information contained in or implied by this publication without seeking appropriate professional advice which relates specifically to his/her particular circumstances.  Cutcher & Neale Investment Services Pty Limited expressly disclaim all and any liability to any person, whether a client of Cutcher & Neale Investment Services Pty Limited or not, who acts or fails to act as a consequence of reliance upon the whole or any part of this publication. Cutcher & Neale Investment Services Pty Limited ABN 38 107 536 783 is a Corporate Authorised Representative of Cutcher & Neale Financial Services Pty Ltd ABN 22 160 682 879 AFSL 433814


Topics: CNIS, Investment, Federal Reserve, US Federal Reserve

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