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Morning Market Update - 9 September 2019


Pre-Open Data

International Markets vs Australian Market

Key Data for the Week

Key economic data released this week:

  • Monday – AUS – Housing Finance
  • Monday – US – Consumer Credit
  • Tuesday – AUS – Business Confidence and Conditions
  • Tuesday – UK – Unemployment Rate
  • Wednesday – AUS – Consumer Confidence
  • Wednesday – US – Producer Price Index
  • Thursday – EUR – ECB Monetary Policy Decision
  • Thursday – US – Consumer Price Index
  • Friday – US – Retail Sales
  • Friday – EUR – Trade Balance

S&P ASX 200 Last 12 Months

Australian Market

The benchmark ASX 200 index closed up 0.52% on Friday, to finish the week, up 0.65% its third straight week of gains following two weeks of major losses.

The big four banks all closed higher on Friday, with NAB up 0.87%, ANZ up 0.71% and Commonwealth Bank up 0.37%. Westpac gained 0.49% despite announcing the company has received notification of a class action over its superannuation products.

The Health Care sector also rallied, buoyed by biotech giant CSL, which added 0.98% and Ramsay Health Care, which rose 1.38%.

The Australian futures market points to a 0.11% fall today.

Overseas Markets

The major US indices were mixed on Friday night; the Dow Jones gained 0.26%, the S&P 500 added 0.09%, but the NASDAQ fell 0.17%. However, over the course of the week all the indices were positive. The Energy and Materials sectors were the strongest performers, up 0.52% and 0.48% respectively.

The Information Technology sector gave up 0.15% after media reports of antitrust probes into Facebook and Alphabet. Facebook fell 1.79% and Alphabet gave up 0.48%. Elsewhere in the Information Technology sector, Intel bucked the trend, rising 1.64% for the day.  

European stocks also rose; the broad based STOXX Europe 600 gained 0.32%, while the German DAX and UK’s FTSE 100 lifted 0.54% and 0.15% respectively. The Materials and Health Care sectors were the largest gainers, with CRH and Novartis adding 0.33% and 0.82% respectively.

CNIS Perspective

Employment data out of the US on Friday contained both positive and negative news.

Non-farm jobs growth of 130,000 was less than expected and down on the average monthly gains this year of 158,000. This is down sharply from 2018’s monthly pace of 223,000 and confirms a slowing jobs market that is not being helped by the ongoing trade war between US and China.

On the other hand, the unemployment rate remains at a 50 year low and wages grew at 3.2%, which is well above the average for the last five years and should continue to support the all-important US consumer, that is the backbone of the US economy.

The US economy looks like it’s coming off the boil, but still looks strong enough to grind out modest economic growth.

Average hourly earnings (YoY change, SA)

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


Disclaimer

The material contained in this publication is the nature of the general comment only, and neither purports, nor is intended to be advice on any particular matter. Persons should not act nor 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, Australian Market, ASX, international markets

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