Morning Market Update - 25 August 2017


Pre-Open Data


Key Data for the Week

Key economic data released this week:

  • Thursday – UK – Gross Domestic Product increased by 0.3% in the quarter ending 30 June 2017. GDP is 1.7% higher than the same quarter last year.
  • Thursday – US – Initial Jobless Claims increased 2,000 last week, to 234,000, while the 4 week moving average was 237,750, a decrease of 2,750 from the previous week.
  • Friday – US – Durable Goods Orders

Australian Market


The Australian market closed a touch higher in yesterday’s session, after one of the busiest days in this reporting season. Insurance and mining names offset what was a tough day for Real Estate Investment Trusts, with the benchmark ASX 200 index closing up 0.15%.

South32 (S32) released FY17 earnings yesterday, reporting a 19.6% increase in revenue and a significant increase in underlying EPS, to US$0.216, driven by a combination of stronger commodity prices and high operating leverage. Free cash flow increased US$1.3bn to US$1.9bn. S32 announced a fully franked final dividend of US$0.064/share, taking the total dividends paid for the FY17 year to US$0.10/share. S32 increased $0.05, to close 1.7% higher at $2.94.

Flight Centre (FLT) also released its FY17 earnings yesterday, reporting a 1.3% increase in revenue, however, EPS declined 5.7% to $2.29. Despite the decline, underlying earnings came in at $329.5m, towards the top end of its $325-330m guidance range, as stabilising airfare prices supported 2H17 earnings. FLT increased $4.73, to close 10.7% higher at $49.10.

The Australian futures market points to a 0.07% fall today.

Overseas Market

Share markets in the US slipped slightly overnight. The Dow Jones closed down 0.13%, the S&P 500 ended 0.21% lower and the NASDAQ dropped 0.11%.

In Europe markets strengthened. The UK’s FTSE 100 increased 0.33%, Germany’s DAX lifted 0.05% and the broad based Euro Stoxx 600 gained 0.59%.

CNIS Perspective

The powerful driver of US economic growth, the consumer, doesn’t appear to be losing any momentum, with consumer confidence hitting a 16 year high.

This weekly gauge of consumer comfort recorded its sixth straight weekly advance and the highest level since August 2001. The ‘measure of current views of the economy’ also rose to its highest level since April 2001.

The strong jobs market and absence of rising prices are making consumers more upbeat about buying conditions. This should see household spending continue to fuel the US economy in the second half of the year.

Interestingly, the strong level of consumer confidence appears unaffected by domestic worries related to violence in Charlottesville and Virginia, or geopolitical concerns regarding North Korea.


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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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