Morning Market Update - 16 April 2018

Pre-Open Data


Key Data for the Week

Key economic data released this week:

  • Monday – US – Retail Sales
  • Tuesday – AUS – RBA Meeting Minutes
  • Tuesday – UK – Unemployment Rate
  • Tuesday – US – Housing Starts
  • Wednesday – EUR – Consumer Price Index
  • Wednesday – UK – Consumer Price Index
  • Thursday – AUS – Unemployment Rate
  • Thursday – UK – Retail Sales
  • Thursday – US – Initial Jobless Claims
  • Friday – EUR – Consumer Confidence

Australian Market


The Australian sharemarket ended the final trading session of the week on a positive note, rising 0.23%, led by gains in the Information Technology sector.

Materials stocks continued to boost the local market; BHP rose 0.3%, Rio Tinto climbed 2.0% and South32 lifted 0.6%, while in the Financials space, the big four banks ended the session mostly weaker, with only Commonwealth Bank recording a gain.

Seven West Media Ltd (SWM) announced it has signed a six-year, $75m p.a. deal with Cricket Australia for domestic free-to-air broadcast rights. SWM gained $0.07, to close 12.6% higher, at $0.58.

The Australian futures market points to a 0.10% fall today, driven by weaker US markets on Friday night.

Overseas Market 

US sharemarkets ended lower on Friday, dragged down by bank stocks. Despite announcing increased profits, JP Morgan fell 1.7% after their earnings report disappointed analysts, while Wells Fargo and Citigroup lost 3.4% and 1.6% respectively. Overall, the S&P banks index fell 2.6%. The Dow Jones and NASDAQ both lost 0.5%, while the S&P 500 eased 0.3%.

European sharemarkets recorded modest gains on Friday, as the disappointing earnings results by US banks weighed on optimism surrounding global trade. The German DAX rose 0.2%, while the broad based STOXX Europe 600 and UK FTSE 100 both added 0.1% respectively.

CNIS Perspective 

March retail sales data out of the US tonight will give an insight into the strength of the US economy.

Personal tax cuts in January should by now be flowing through to household wallets, but the question is whether this extra cash is used for savings, debt repayment or shopping.

Given the heavy reliance on the consumer for economic growth in the US, economists hope that tonight’s retail sales numbers show the consumer is back into spending mode after a few months of being quiet.

Spending was strong in September to November last year as a result of the post hurricane recovery spend, but has since dropped.

It will need to be a strong March retail sales number to make up for the weak January and February numbers, and keep GDP growth rolling along.


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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, Retail, GDP

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