Morning Market Update - 21 August 2017


Pre-Open Data


Key Data for the Week

Key economic data released this week:

  • Tuesday – US – Housing Price Index
  • Wednesday – EUR – Markit Manufacturing PMI
  • Wednesday – US – Markit Manufacturing PMI
  • Thursday – UK – Gross Domestic Product
  • Thursday – US – Initial Jobless Claims
  • Friday – US – Durable Goods Orders

Australian Market


The Australian sharemarket ended the session lower on Friday, led by falls in the Materials and Financials sectors.

Primary Healthcare Ltd (PRY) released its FY17 earnings, reporting a 1.0% increase in revenue to $1.7bn and a 4.9% decline in underlying NPAT to $92.1m, in line with recently lowered guidance. Earnings growth in Imaging and Pathology and a reduction in finance costs offset a decline in earnings in the Bulk Billing Medical Centres. PRY increased $0.10, to close 2.8% higher at $3.63.

Companies reporting this week include BHP, Sydney Airport, Healthscope, Woolworths and Medibank.

The Australian futures market points to a 0.07% fall today, being driven by broadly weaker international markets on Friday.

Overseas Market

US sharemarkets fell on Friday. President Trump fired chief strategist Steve Bannon, raising fresh doubts on the ability of the President to carry out his economic agenda. Utilities was the best performing sector, while Telecommunications and Real Estate were the laggards. The Dow Jones lost 0.4%, while the S&P 500 and NASDAQ gave up 0.2% and 0.1% respectively.

European sharemarkets also closed lower on Friday, weighed down by travel and leisure stocks, as investors reacted to the terrorist attack in Barcelona. The Euro STOXX 600 fell 0.7%, while the German DAX and UK FTSE 100 slipped 0.3% and 0.9% respectively.

CNIS Perspective

Economic management of a country that covers such a large geographic area as Australia will often pose challenges, particularly when one specific region experiences a downturn.

The Western Australian economy is presenting those challenges now as it continues to recover from the post-GFC mining boom.

In contrast to the NSW State Government, that is about to embark on an infrastructure spending spree following years of a record housing boom, the WA State Government’s budget has been disrupted by falling house prices, slow population growth and contracting consumer spending.

Export volumes and low interest rates will support the WA economy, but it’s unlikely to re-experience the days when the mining investment boom was in full swing any time soon.


Contact Us

Should you wish to discuss this or any other investment related matter, please contact our 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, Market Update

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