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Morning Market Update - 8 December 2017

 

Pre-Open Data

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Key Data for the Week

Key economic data released this week:

  • Thursday – EUR – Gross Domestic Product rose by 0.6% in both the euro area (EA19) and the EU28 during Q3. Over the last 12 months, GDP rose by 2.6% in both the euro area and the EU28.
  • Thursday – US – Initial Jobless Claims fell 2,000 to a seasonally adjusted 236,000 for the week ended December 2, the third straight weekly decline in claims.
  • Friday – AUS – Home Loans
  • Friday – UK – Industrial Production
  • Friday – US – Unemployment Rate

Australian Market

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The ASX 200 closed 0.54% higher at 5,978, led by gains in the IT and Utilities sectors.

Retail names were mixed; Harvey Norman and JB Hi-Fi gave up 1.20% and 0.39% respectively, while Nick Scali and Adairs lifted, putting on 3.62% and 0.28%. The big four banks ended the day higher, with Westpac and ANZ finishing the strongest, up 1.32% and 0.85%.

In company news, A2 Milk Ltd (A2M) reached a settlement with Lion Dairy & Drinks regarding the rights for A2M to use the name ‘A2 Protein’ on their labels. A2M declined $0.22, to close 3.0% lower, at $7.14.

The Australian futures market points to a 0.38% rise today, being driven by positive leads from international markets overnight.

Overseas Market 

US share markets were higher overnight. The Dow Jones and S&P 500 each closed up 0.29%.

Technology shares lead the market higher, with shares in Visa ending the day up 1.46%, Mastercard rose 1.41%, PayPal lifted 0.77%, Facebook jumped 2.40% and Alphabet, the parent company of Google, put on 1.24%.

In Europe, the German DAX rallied 0.36%, France’s CAC 40 increased 0.18%, whilst the UK’s FTSE 100 fell 0.37%.

CNIS Perspective

Yesterday’s trade figures reinforced just how connected and reliant we are on China for our economic fortunes.

The October trade surplus narrowed to its smallest level in six months, largely due to a contraction in exports. This was on the back of slower demand from China, as measures to curb pollution saw their demand weaken.

Exports of metal ores and minerals, including iron ore, were down 10%, metals, excluding gold, were down 16% and coal, coke and brisquettes down 2%, as China’s steel production contracted.

The import side of the equation looked a little encouraging, with October imports rising after a weak September quarter. This could reflect an improvement in consumer spending, although the headwinds of soft wage growth and high household debt levels will likely keep a lid on household spending.

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Contact Us

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


Disclaimer

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, China, GDP, Exports and Imports

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