Morning Market Update - 21 April 2017


Pre-Open Data


Key Data for the Week

Key economic data released this week:

  • Thursday – US – Initial Jobless Claims rose 10,000, to 244,000, in the week ended April 15. However, the total number of people receiving jobless benefits declined by 49,000, to 1.98 million, in the week ended April 8, the smallest number since April 2000

Australian Market


The benchmark ASX 200 index closed up 0.3% yesterday, thanks to solid buying support for the banks and enthusiasm for Telecommunications names.

E-commerce giant Amazon’s announcement, confirming it plans to enter the Australian market, albeit without providing a specific timeline, saw retailers falter; Harvey Norman fell 3.5%, Myer 2.6% and JB Hi-Fi 1.8%.

In the Telecommunications space, Telstra rallied 2.91% and TPG lifted 2.89%.

The big four banks all ended the day in the green, ANZ led the charge up 1.22%, NAB rose 0.89%, while Commonwealth and Westpac lifted 0.60% and 0.18% respectively.

Sydney Airport (SYD) announced in the year to date international passenger numbers have risen 5.7%, while domestic passengers rose 0.2%, despite some service interruptions associated with Cyclone Debbie. SYD lifted 1.02%.

The Australian futures market points to a 0.51% rise today, being driven by positive leads from US markets.

Overseas Market

Risk appetite returned to financial markets. Share markets were boosted by positive earnings results and comments by US Treasury Secretary Mnuchin, which hinted at progress in developing a tax plan. The Dow closed 0.9% higher and the S&P 500 lifted 0.8%.

In company news, Visa reported net operating revenue rose 23.5%, to US$4.48 billion, exceeding expectations of US$4.29 billion. Earnings per share of 86 cents beat the 79 cents expected by analysts. The company said total payments volume jumped 37.2%, to US$1.73 trillion, in the second quarter ended March 31, on a constant dollar basis. Visa also announced a US$5 billion share buyback, gaining 3% in afterhours trading.

eBay reported revenue of US$2.2 billion in the March quarter, up 4% from last year. eBay updated its guidance for the year, expecting between US$9.3 billion - $9.5 billion in revenue for 2017.  For the full year, eBay said it anticipates earnings per share between US$1.98 - $2.03. eBay declined 3.91%.

CNIS Perspective

Some correlations of data are more interesting than others, and no doubt the RBA and APRA, amongst others, would find the correlation between luxury car prices and median home prices very interesting.

The graph below shows luxury car sales are a lead indicator for median home prices and have been on a downward trend for over a year now. However, median home prices have been bucking the trend and are currently out of sync.

No doubt the RBA, APRA and the like, would be happy to see the usual correlation restored.


Contact Us

Should you wish to discuss this or any other investment related matter, please contact your Investment Services Team on (02) 4927 8844.


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: Investment, CNIS, Australian Market, Overseas Market, Luxury Car Sales, House Prices

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