Tag Archives: Europe & UK

article 3 months old

The Overnight Report: Draghi Disappoints

By Greg Peel

The Dow closed down 252 points or 1.4% while the S&P lost 1.6% as the Nasdaq fell 1.9%.

Commodity Crunch

The driver of weakness in the local market yesterday was writ large in sector moves by the closing bell. With both WTI oil and iron ore set to fall into the thirties, the energy sector lost 2.2% and materials 1.8% while almost all other sectors saw insignificant moves. Healthcare was the only other sector to see a plus 1% drop.

Bargain hunters were nevertheless waiting when the ASX200 fell 58 points on the open, quickly halving that drop ahead of the release of the local October trade data. The deficit revealed in the numbers was enough to bring in the sellers once more before again the buyers fought back, and we saw a net 30 point drop by the close.

September’s trade deficit was $2.4bn and economists were looking for $2.6bn for October, thus the result of $3.3bn came as somewhat of a shock, particularly in the wake of the “beat” on September quarter GDP due to a better than expected contribution from exports. Exports of goods and services fell 3.0% in October while imports rose 0.2%.

Breaking down exports reveals goods down 4.1% and services up 0.1%, while within goods, metals exports were down 6%. The bottom line is that the deficit blow-out can simply be blamed on the iron ore price. Elsewhere, there is good news in that while rural exports did sag in the month, annual growth in rural exports is running at 11.4% with more to come thanks to recent free trade agreements. And the lower Aussie dollar is clearly having a positive impact on tourism.

Not Happy Mario

At the same time that the world was quietly becoming convinced the Fed will hike in December, the world had more assuredly assumed the ECB would announce extended QE at its December meeting last night. QE has been duly extended out to March 2017, but the quantum is what caught markets by surprise.

It was assumed the QE program would not only be extended in time but also in quantum, but the ECB left its monthly bond purchase target unchanged at E60bn. It was also assumed the central bank’s deposit rate would be cut by 20 basis points but it has only been cut by 10, to minus 30 basis points. The response to these numbers was the biggest move the euro has seen against the US dollar in either direction since 2009. Every man and his dog was short.

The euro jumped over 3% against the greenback, sending the US dollar index down a whopping 2.3% to 97.66. There was carnage in European stock markets, with Germany and France both down 3.6% and London down 2.3%. The carnage was also evident in European bond markets, more closely linked to monetary settings. The German ten-year yield jumped 13 basis points to 0.60%. That’s a 42% jump.

The sell-off in European bonds flowed over the Pond on the carry trade connection, sending the US ten-year yield up 15 basis points to 2.33%.

I noted in yesterday’s Report that not everyone in Europe thought it a good idea were the ECB to go “shock and awe” on its easing, given recent positive signs in the economic data, and it appears Mario Draghi is of a similar mind. He is keeping his powder dry and, as always, promised he can do more “if necessary”.

Terror-Fied

It has been suggested that the Pakistani-born husband and wife team who carried out the mass shootings in San Bernardino were “radicalised”, suggesting America’s 355th mass shooting for 2015 was not the act of the usual home-grown nutter but indeed an act of terror. While commentators suggest last night’s sell-off on Wall Street was predominantly about the ECB, they concede an element of fear related to the shootings.

Meanwhile Wall Street also had economic data to deal with. The US November service sector PMI tumbled to 55.9 from 59.1 in October when economists had forecast 57.5. While 55.9 is nothing to shirk at, the easing in the pace of growth is the biggest since 2008. Factory orders posted a gain in October, but missed expectations.

A good time to tighten monetary policy? On that subject, Janet Yellen was providing a testimony to a House Economic Committee last night and once again her rhetoric implied the Fed has already decided to hike this month. With reference to San Bernardino, Yellen agreed terrorism had the potential to impact on the US economy but that there was no sign of such at this time. She also said that were the Fed to raise its cash rate, it could always cut it again if needs be.

Tonight sees the US non-farm payrolls report for November and economists are forecasting 200,000 new jobs. The market is assuming it probably doesn’t matter what the result is.

Commodities

If there was any market that specifically exhibited a terrorism-related response last night it was the oil markets. As soon as police officials used the word “radicalised” on live news broadcasts, oil prices jumped. West Texas is up US$1.05 at US$41.12/bbl and Brent is up US$1.26 to US$43.87/bbl.

WTI has avoided a 30 handle for now. Iron ore is also hanging in there, but fell another US30c last night to US$40.30/t.

Fear of a rising US dollar has been a big driver of commodity price falls most recently, so one would expect the big drop in the greenback to spark some short-covering. However the flipside of the dollar fall is disappointing stimulus from the ECB, which is itself disappointing for commodities markets. The oils rose on the terror element but last night in London, zinc fell 1.5% and nickel and tin 1% while the other base metals were relatively steady.

The winner on the currency move was gold, up US$11.60 at US$1064.50/oz.

The Aussie had fallen under 73 in yesterday’s trade on the release of the weak trade data, but the greenback’s fall has meant a 0.7% rise over 24 hours to US$0.7357.

Today

It just goes to show how dependent markets remain on central bank support, all these years after the fall of Lehman. The world has baked in a Fed rate rise and just wants to get it over with, knowing subsequent hikes will come very slowly. But the focus is now on Europe following in the footsteps of the US response to the GFC, and the world did not get what it wanted last night.

The SPI Overnight closed down 67 points or 1.3%.

Today sees retail sales data in Australia. Tonight sees the US jobs report which would typically be “all-important”, but one gets the feeling this one isn’t.

No one is expecting production cuts to be announced at tonight’s OPEC meeting, but then everyone expected more from the ECB.

On the local stock front, quarterly changes to the S&P/ASX stock indices will be announced today, becoming effective in two weeks’ time.
 

All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available in the FNArena Cockpit.  Click here. (Subscribers can access prices in the Cockpit.)

(Readers should note that all commentary, observations, names and calculations are provided for informative and educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions. All views expressed are the author's and not by association FNArena's - see disclaimer on the website)

All paying members at FNArena are being reminded they can set an email alert specifically for The Overnight Report. Go to Portfolio and Alerts in the Cockpit and tick the box in front of The Overnight Report. You will receive an email alert every time a new Overnight Report has been published on the website.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" - Warning this story contains unashamedly positive feedback on the service provided. www.fnarena.com

article 3 months old

The Overnight Report: Life After Forty

By Greg Peel

The Dow closed down 158 points or 0.9% while the S&P lost 1.0% to 2081 and the Nasdaq fell 0.5%.

Quiet Achiever

Australia’s economy grew by 0.9% in the September quarter for a 2.5% annual rate, beating forecasts of 0.8% and 2.4%. It was a big improvement on the June quarter result, but indicates the economy is still growing at a sub-trend level.

It used to be accepted that 3.5% represented “normal” growth but in the post-GFC world, anything previously considered “normal” is being reassessed, particularly in light of an historically low global interest rate environment which, at least for the foreseeable future, appears to be the “new normal”.

The good news from the GDP result is that Australia’s non-mining economy is indeed growing sufficiently to offset the drag of declining mining investment. The housing sector remains the stand-out contributor, which is also providing a flow-on into consumer spending on household goods. And while investment might be declining now in mining, money previously invested has resulted in increased export volumes – at lower commodity prices, offset to some extent by a lower currency, but solid nonetheless.

The GDP result appeared to turn around what was an otherwise weak local market from the open yesterday, following on from Tuesday’s big surge. It was a very choppy session, suggesting a staunch battle between buyers and sellers, but the end result was only a small loss at the close. A profit-warning from Spotless ((SPO)) sent that stock down 40% and thus the industrials sector down 1.8%, distorting otherwise mixed and minimal sector moves.

Fear

Around 2pm New York time, news hit the wires of a mass shooting in San Bernardino, California. As the US markets came to a close the suspects were still at large.

The response on Wall Street was basically a hundred Dow points, given the Dow was down around 70 points before suddenly plunging to down 170 on the news, no doubt based on fear of another terrorist attack. Weakness prior was largely due to the WTI oil price once again trading below the US$40/bbl mark.

The US private sector added 217,000 jobs in November, up from 196,000 in October and beating forecasts of 185,000. The result does nothing to change the general assumption the Fed will raise in two weeks.

If there is to be a hike, Janet Yellen is still trying to assert that it is not yet a done deal. In a speech last night the Fed chair suggested she believed the two requirements for a hike – labour market improvement and inflation moving in the right direction – have been met, but the FOMC still intends to assess the data prior to making the decision. Presumably the highlight of “the data” as far as this decision is concerned is Friday night’s non-farm payrolls report, but there are plenty of other data releases due in the interim, including CPI numbers.

Whereas once Wall Street would surge and plunge on any little snippet of a clue about what the Fed might do, now the markets largely respond with a shrug. The US dollar index is up 0.2% to 100, helped by a weaker euro. The ECB meets tonight. The US ten-year bond yield closed up 2 basis points at 2.18%. The US stock market basically did not respond.

Commodities

Commodity markets nevertheless remain edgy over a Fed rate rise and the implications for the US dollar, particularly if we add in an extension of eurozone QE as markets are expecting tonight. It’s a double whammy for the greenback, and of little help to already weak commodity prices.

Last night saw the weekly US oil inventory data released, and they indicated the tenth weekly increase in crude supplies. West Texas crude settled in the afternoon at US$39.94/bbl but in later electronic trading has managed to sneak back up to US$40.07, down US$1.52 or 3.6% on the session. Brent is also down 3.6% at US$42.61/bbl.

Iron ore is down 2.4%, or US$1.00, to US$40.10/t. Analysts have for some time been assuming the potential of a number with a three at the front, and it looks very much like that time might be upon us.

Strength in the US dollar is forcing commodity funds to liquidate positions, which was evident last night in London as all metals bar aluminium fell once more. Copper fell 1.2% and zinc fell 2%.

The gold market likely saw the US private sector jobs number and Yellen’s “on track” comments as going further to cementing a December rate rise. Gold is down US$15.70 at US$1052.90. Analysts are now looking ahead to gold in triple digits in 2016.

The Aussie initially railed yesterday on the GDP “beat” but has since fallen on weaker commodity prices and the lower greenback. It’s down 0.3% over 24 hours at US$0.7308.

Today

With both oil and iron ore at the brink of trading under 40, the SPI Overnight closed down 53 points or 1%.

Australia’s October trade balance is due out today and across the globe it’s service sector PMI day.

All eyes will be on the ECB tonight. In stark contrast to counterpart Janet Yellen, Mario Draghi is a man who tends to offer clear intentions and then follow through on them. For some time Draghi has suggested a QE extension is possible if needs be, and European markets are assuming a “needs be” situation exists, particularly since Paris.

There is nevertheless an argument to suggest the ECB should not “ease” tonight nonetheless, given recent eurozone data have been reasonably positive. Inflation, or lack thereof, remains the sticking point. And one presumes the ECB cannot ignore the financial impact of the Syrian diaspora.

Rudi will make his usual weekly appearance on Sky Business' Lunch Money today (noon-1pm) and then later re-appears on Switzer TV, with Marty interviewing, between 7-8pm.
 

All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available in the FNArena Cockpit.  Click here. (Subscribers can access prices in the Cockpit.)

(Readers should note that all commentary, observations, names and calculations are provided for informative and educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions. All views expressed are the author's and not by association FNArena's - see disclaimer on the website)

All paying members at FNArena are being reminded they can set an email alert specifically for The Overnight Report. Go to Portfolio and Alerts in the Cockpit and tick the box in front of The Overnight Report. You will receive an email alert every time a new Overnight Report has been published on the website.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" - Warning this story contains unashamedly positive feedback on the service provided. www.fnarena.com

article 3 months old

The Overnight Report: Dashing Through The Snow

By Greg Peel

The Dow closed up 168 points or 1.0% while the S&P gained 1.1% to 2102 and the Nasdaq added 0.9%.

Buy Australia

It’s unclear exactly who waved the flag, but whatever the case offshore investors decided yesterday, the First of December, was the day to Buy Australia after a period of weakness for the local index. That weakness has been as much due to company specific issues (think BHP, Woolworths for example) as it has to any macro consideration. And the fact the 5% fall in the Chinese stock market last week now appears to be a blip likely helped.

The investment strategy of yesterday’s buyers becomes clear if we break down the sector moves. The winners were consumer staples (2.8%), telcos (2.4%), consumer discretionary (2.3%), materials (2.3%) and financials (2.1%). We then drop to energy (1.5%) and thereafter, no sector move exceeded 1%.

In the big movers we see an intersection of the subsets of yield (staples, telco, banks and big miners, although don’t count your chickens on the last one) and beaten-down large caps (banks, BHP, Woolies). The consumer sector moves also provide evidence of short-covering (Metcash, Dick Smith).

 We also see evidence of the offshore element in an Aussie dollar that is up a full cent to US$0.7327 over 24 hours. Some of that is overnight due to the US dollar index being down 0.4% to 99.76, and some of it was due to yesterday afternoon’s “on hold” from the RBA. But the currency moved steadily up all day.

Yesterday’s RBA rate decision did not come into play in the local equity market. The ASX200 was up a hundred points by lunchtime and held that through the afternoon rate decision. But the statement did confirm stock market investors have the luxury of knowing the “RBA Put” remains in place. Glenn Stevens could not have made it any clearer:

“At today's meeting the Board again judged that the prospects for an improvement in economic conditions had firmed a little over recent months and that leaving the cash rate unchanged was appropriate. Members also observed that the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand.”

Everyone’s a winner.

In terms of economic conditions that have “firmed”, yesterday’s local data releases supported that thesis.

Australia’s current account deficit did not narrow in the September quarter by as much as economists had forecast but the terms of trade suggested a sizeable 1.5ppt contribution to today’s GDP result, ahead of 1.2ppt predictions. With all the angst created by falling commodity prices, it is often lost on observers that export volumes remain robust, and that the lower Aussie is offsetting price falls.

Australia’s manufacturing PMI improved for the fifth consecutive month in November, rising to 52.5 from 50.2 in October.

Building approvals rose 3.9% in October, against expectations of an easing. The annual pace of approvals has nevertheless eased to 12.3% from 21.4% in September, but this reflects lumpy apartment block approvals. A cooling in runaway apartment block construction is not a bad thing as it alleviates “bubble” fears. Ditto a 1.5% drop in average house prices. Construction will continue to support the economy for a little while yet, but not scare economists or the RBA.

Consensus forecasts for today’s September quarter GDP result are for 0.8% quarterly growth and 2.4% annual growth.

Disappointment

To the north, China’s economy is not showing signs of “firming”.

Beijing’s official manufacturing PMI slipped to 49.6 from 49.8 last month when economists were hoping for a steady result. Four consecutive months of contraction represent the longest run since the GFC. Caixin’s equivalent PMI preformed a little better, rising to 48.6 from 48.3, but still representing faster-than-official contraction.

Yet we must once again be mindful of Beijing’s attempts to shift China’s economy away from exports and towards consumption. The official service sector PMI came in at 53.6, up from 53.1. And the Chinese data appeared to have no effect on the Australian market yesterday, when in the past the response has often been substantial.

Around the grounds, Japan’s manufacturing PMI rose to 52.6 from 52.4, the eurozone rose to 52.8 from 52.3 and the UK slumped to 52.7 from 55.2. The most disturbing result came from the US, which saw a fall to 48.6 from 50.1.

That You Santa?

US economists had expected 50.5. It’s the first fall into contraction for US manufacturing since November 2012 and the lowest reading since June 2009, at the depths of the GFC. The last time the Fed raised rates when the US manufacturing sector was in contraction was in 1981, when inflation was 10%.

But ultimately this didn’t faze Wall Street last night. US investors had clearly made up their minds that on the First of December, they will buy US stocks as well as Australian stocks, with a preference for those that have been beaten down over the year. Such is the December theme, and one of the factors behind the famed Santa Rally.

The indices did suffer a rapid pullback from early strength when the PMI result was released, but it did not last long. Wall Street was in buying mode.

In contrast to the weak manufacturing data was last night’s consumer data. Wall Street continues to shake its head at the ongoing surge in US car sales, led by low petrol prices and low finance costs. Total sales for November were 18.2m, up from 17.2m a year ago. The big winner in the month was Toyota. No prizes for guessing the biggest loser (dak, dak, dak).

The weak manufacturing data did, nevertheless, spark a flight into US bonds for the first time in a while. Having fallen into a slumber of late, last night the US ten-year yield fell 6 basis points to 2.15%. Commentators were nevertheless quick to suggest this does not imply the US bond market has decided there may not now be a Fed rate hike this month. They have decided that the pace of subsequent hikes will be very, very slow.

Commodities

One would expect a combination of weak manufacturing data for both China and the US to be negative for base metal prices, but base metal prices have been pretty well thumped of late. Thus on the relief of the drop in the greenback overnight, prices rallied somewhat. Aluminium rose 2%, zinc rose 1.5% and copper, lead and nickel rose around 1%.

The trend is not good for the iron ore price. A US$1.20 fall overnight to US$41.60/t suggests a number with a three in front of it may well be on the cards.

The oils had another quiet session last night, as markets await the outcome of Friday’s OPEC meeting. West Texas is little changed at US$41.59/bbl and Brent is down US37c to US$44.18/bbl.

Gold is up US$3.70 at US$1068.60/oz.

Today

The SPI Overnight closed up 3 points.

Australia’s GDP result is out today as noted, while RBA governor Glenn Stevens will speak in Perth.

Wall Street will see private sector jobs tonight, ahead of Friday’s non-farm payrolls report.

Collins Foods ((CKF)) will report its interim result today, and Fletcher Building ((FBU)) will hold an investor day.
 

All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available in the FNArena Cockpit.  Click here. (Subscribers can access prices in the Cockpit.)

(Readers should note that all commentary, observations, names and calculations are provided for informative and educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions. All views expressed are the author's and not by association FNArena's - see disclaimer on the website)

All paying members at FNArena are being reminded they can set an email alert specifically for The Overnight Report. Go to Portfolio and Alerts in the Cockpit and tick the box in front of The Overnight Report. You will receive an email alert every time a new Overnight Report has been published on the website.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" - Warning this story contains unashamedly positive feedback on the service provided. www.fnarena.com

article 3 months old

The Overnight Report: Thanks

By Greg Peel

Capex

The local market was surprisingly off to the races from the opening bell yesterday despite the futures suggesting a 9 point fall. Perhaps the fact Russia did not declare war on Turkey – it has elected to retaliate economically instead – was enough for the market to decide to reverse the selling of the day before.

The ASX200 was up 60 points by late morning but there it stalled, before drifting slowly away all afternoon to a 17 point gain on the close. While the selling began around the time of the release of the September quarter capex report, that report was not an overall disaster. More likely the market simply settled back after some early exuberance.

Private capital expenditure fell 9.5% in the September quarter when economists had expected a 2.9% fall. The sensationalist headline on the day for the popular press was the 20% capex decline year on year, within which mining spending is down 29.6% and business spending down 9.0%.

The mining story comes as no surprise given persistently low commodity prices, but the business number suggests further downside risk to non-mining spending over FY16, Commonwealth Bank’s economists suggest. There was, nevertheless, some minor good news.

For economists, and the RBA, the key component of the capex data is capex intentions. The September quarter numbers represented the fourth quarter in which those surveyed provided an estimate for FY16. It came in at $120.4bn, which is 4% higher than the last estimate made in the June quarter.

The problem with such estimates is they tend to ebb and flow from quarter to quarter depending on the economic mood and confidence at the time. Nailing down a trend is not easy. CBA’s assessment is that mining capex will fall by 35-40% in FY16, and non-mining by 10%. These numbers are in line with the RBA’s projections. While yesterday’s report will lead to a trimming of September quarter GDP forecasts, there is no reason for the RBA to alter its policy.

And pragmatically, what would another 25 basis point interest rate cut achieve? Commodity prices are the major issue, not borrowing rates. For non-miners, it is clearly a matter of confidence. If a record low 2% cash rate is not a trigger to start investing in one’s business, why would 1.75% be any different? The best thing that can happen to non-mining in the near term is that the benefits of the lower Aussie dollar start to show up in the numbers. This does not happen overnight, but rather can be a lag effect of six to twelve months.

By the close, the resource sectors bore the brunt of any capex disappointment. Energy fell 0.5% and materials 1.3%. Woolies management clearly did not manage to wow them at the company’s AGM, so consumer staples fell 0.6%. Otherwise, the yield stocks that were all sold down on Tuesday were all bought back up again yesterday.

The Aussie is 0.3% lower at US$0.7230.

Commodities

For the record, European stock markets posted gains of around 1% overnight. For eurozone markets, the promise of extended ECB stimulus continues to provide support. For the London market, rallies in metal prices overnight provided a fillip.

It was reported overnight that the China Non-Ferrous Metals Industry Association has suggested to Beijing the government buy 900,000t of aluminium from the market, 300,000t of nickel and 400,000t of zinc. If the government agrees, it will be the first such intervention since 2009.

In a base metals market still susceptible to bursts of short-covering, and in thin trading overnight due to the absence of US interest, tin rose 1.5%, copper, lead, nickel and zinc rose 2% and aluminium rose 4%.

Commentary out of the LME was nevertheless dismissive. While it is all well and good for the Chinese government to take supply out of the market it is still there, just in another location. Such purchases will not resolve the issue of global oversupply.

Meanwhile, iron ore rose US20c to US$43.60/t.

Gold is unchanged at US$1070.60/oz given a flat US dollar index.

Electronic trading sees West Texas crude down US59c at US$42.38/bbl and Brent, which is only electronic, down US72c to US$45.37/bbl.

Today

With the base metal rally about the only thing to go on, the SPI Overnight closed up 16 points or 0.3%.

China will release industrial profits numbers today and Japan will release inflation data.

The NYSE will close at 1pm New York time tonight.

The local AGM season suddenly eases back to a trickle of stragglers as of today. Fisher & Paykal Healthcare ((FPH)) will report half-year earnings.
 

All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available in the FNArena Cockpit.  Click here. (Subscribers can access prices in the Cockpit.)

(Readers should note that all commentary, observations, names and calculations are provided for informative and educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions. All views expressed are the author's and not by association FNArena's - see disclaimer on the website)

All paying members at FNArena are being reminded they can set an email alert specifically for The Overnight Report. Go to Portfolio and Alerts in the Cockpit and tick the box in front of The Overnight Report. You will receive an email alert every time a new Overnight Report has been published on the website.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" - Warning this story contains unashamedly positive feedback on the service provided. www.fnarena.com

article 3 months old

The Monday Report

By Greg Peel

Resilient

There was every reason to expect profits to be taken on the local bourse on Friday following a very sharp and solid rally for the index over the week, but it was not to be. While there was no great enthusiasm from the buyers early in the session, potential sellers were also thin on the ground.

By day’s end the index posted a mild gain to cap a consistent up-week, led by the banks, which posted a 0.6% gain to offset oil price-inspired weakness in energy (-1.1%). Materials (+0.2%) held up despite another slide in the iron ore price, struggling to fall further from the BHP-driven lows already posted.

Nor does there seem to be a lot of concern at this stage that the Aussie dollar has staged a bit of a comeback. The market had assumed that were the Fed to go ahead with its first rate rise in December, the Aussie must surely fall into the sixties and stay there this time. But that rate rise is now priced in and attention has turned to expectations of a very slow tightening cycle from the US central bank thereafter.

This realisation has sparked selling the US dollar, although downside for the greenback is limited when there is a race to the bottom among other currencies, particularly the euro. Having fallen sharply on Thursday night, Friday night saw the US dollar index bounce back again by 0.7% to 99.63. By rights the Aussie should counter with a fall, but it was up another 0.6% on Saturday morning at US$0.7237.

Clearly the shorts are still being cleared out.

As You Were

The Dow was up as many as 180 points during Wall Street’s session on Friday but the afternoon did bring in the sellers, likely taking the profits Bridge Street seemed content to leave alone after a strong week. In fact it was the best week on Wall Street in almost a year.

But the week before was one of the worst, so over two weeks Wall Street has gone nowhere.

It makes more sense that traders should take profits ahead of this week given Thursday is Thanksgiving in the US, which closes all markets and ensures half-day sessions on either side of the holiday. For many it would simply be a holiday week.

At the closing bell on Friday the Dow was up 91 points or 0.5% while the S&P had gained 0.4% to 2089 and the Nasdaq had risen 0.6%.

Leading the charge on Friday was teen fashion, with apparel retailer Abercrombie & Fitch stunning the market with its earnings result and enjoying a 25% share price hike in response, while Nike announced a 14% increase in dividend and share buy-back to ensure its position as best performer in the Dow over 2015 to date.

The 0.7% rise in the US dollar index came about primarily because of a tale of two central banks. On Friday night ECB president Mario Draghi reaffirmed his commitment to extensive stimulus measures to combat low inflation. Meanwhile, St Louis Fed president James Bullard suggested the US rate of inflation will soon rise to the Fed’s 2% target, further cementing expectations of a December hike.

Commodities

A stronger US dollar is as always, a drag on commodity prices. But right now the currency conversion is not the biggest issue. On Friday night nickel fell over 3% in London to its lowest level since 2003.

That’s lower than the 2008 GFC sell-off. Yet not so long ago nickel was the darling of the base metals thanks to Indonesian export bans. It just goes to show what oversupply will do. Meanwhile, news that a group of Chinese zinc smelters had agreed to lower production next year helped zinc to a 1.5% gain. Similar curtailments have previously been announced by the likes of Glencore and others.

Copper and aluminium would be best served by curtailments as well. They were both down 1% on Friday night.

Iron ore fell US10c to US$45.00/t.

The oils were mixed on small moves, complicated by the rollover of West Texas into the new January delivery front month. The two majors are now aligned on delivery, and a fall for WTI of US15c to US$41.57/bbl was offset by a US21c rise in Brent to US$44.46/bbl.

Gold had jumped ten dollars the night before on a fall in the greenback, so it was back down US$5.30 on Friday night to US$1076.60/oz.

The SPI Overnight closed down 5 points on Saturday morning.

The Week Ahead

As noted, it’s Thanksgiving in the US on Thursday, closing all US markets. The NYSE will close at 1pm on Wednesday and on Friday. From Wednesday lunchtime, Wall Street will quickly be emptied.

There are nevertheless a lot of data releases crammed into the first three days of the week.

Tonight sees existing home sales, the Chicago Fed national activity index and a flash estimate of November manufacturing PMI. The eurozone will also flash tonight, while Japan will wait to tomorrow given a public holiday today. Caixin no longer provides a China flash.

Tuesday in the US sees Case-Shiller house prices, monthly consumer confidence, the Richmond Fed activity index and the first revision of the September quarter GDP result. Economists are expecting an upgrade to a 1.9% annual rate from the initial estimate of 1.5%.

Wednesday brings durable goods, FHFA house prices, new home sales, personal income & spending, fortnightly consumer sentiment and a flash estimate of the services PMI.  And that’s it for the week.

Locally, RBA governor Glenn Stevens will make a speech tomorrow night while attention turns to September quarter data in the lead-up to next week’s GDP result. Wednesday sees construction work done and Thursday private sector capex.

This week brings the last big rush of corporate AGMs before December meetings slow to a trickle. This week’s highlight will no doubt be Woolworths ((WOW)) on Thursday.

TechnologyOne ((TNE)) posts its FY15 result tomorrow and Fisher & Paykal Healthcare ((FPH)) posts its interim on Friday.

Rudi will appear twice on Sky Business on Thursday. First at noon and again from 6.30-7pm.
 

For further global economic release dates and local company events please refer to the FNArena Calendar.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" - Warning this story contains unashamedly positive feedback on the service provided. www.fnarena.com

article 3 months old

Next Week At A Glance

For a more comprehensive preview of next week's events, please refer to "The Monday Report", published each Monday morning. For all economic data release dates, ex-div dates and times and other relevant information, please refer to the FNArena Calendar.


By Greg Peel

The market has come to the belief the Fed is no longer “data dependent”, even if it claims to be, at least in terms of incremental monthly numbers. Maybe if the November US jobs report shocks to the downside, and/or includes a big downward revision to the October result, would doubts creep in. Otherwise, only a major exogenous shock will prevent the Fed raising next month, it appears.

There is nevertheless plenty of US data out next week for the Fed to ponder, all crammed into the first three days. It’s Thanksgiving week in the US, which means a full day’s trading on Monday and Tuesday, half a day on Wednesday, closed on Thursday and half a day on Friday – “Black Friday”, that is, the day America does its Christmas shopping and the P&Ls of Christmas-weighted retailers swing into the black for the first time in the year.  

Or so the story goes.

So Wall Street will be keeping a close eye on existing and new home sales, house prices, consumer confidence, durable goods, personal income & spending, the Chicago and Richmond Fed activity indices, and a revision of the first estimate of September quarter GDP, all in three days. By Wednesday afternoon the tumbleweeds will be rolling through the NYSE and only the skeletons will come out to play.

Monday is flash day next week, but now that Caixin has decided to no longer provide a flash estimate of its China PMIs, the excitement has waned somewhat. Japan, the eurozone and US will still flash, although Japan is closed on Monday.

Locally attention turns again to September quarter data ahead of our own GDP result the following week. We’ll see construction work done and private sector capex – the latter being particularly important to RBA policy considerations.

And the AGM season rolls on, although thankfully numbers begin to thin next week. There are a handful of stragglers booked in December.

Technology One ((TNE)) and Fisher & Paykal Healthcare ((FPH)) will provide earnings reports.
 

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" - Warning this story contains unashamedly positive feedback on the service provided.

article 3 months old

The Overnight Report: Caution

By Greg Peel

The Dow closed up 6 points while the S&P lost 0.1% to 2050 and the Nasdaq was flat.

Optimistic

It was an extraordinary day on Bridge Street yesterday considering just how weak markets were locally, and globally, heading into last weekend. It would be easy to say the 2.3% surge was a typical rebound out of the prior terror-related panic sell-off, but there was no such sell-off. The ASX200 traded down on Monday but recovered the 5000 technical level by day’s end.

There followed flat markets in Europe and a strong session on Wall Street and somehow the Paris attacks have acted counter-intuitively – as a reason to buy. But yesterday was not just one simple surge on the open for the ASX200. There was an opening pop but thereafter it was a steady upward trajectory throughout the session, aided by a round of local economic optimism.

The minutes of the November RBA meeting, released yesterday, were decidedly, if not cautiously, upbeat. “Moderate economic expansion had continued,” the board noted, and “the prospects for an improvement in economic conditions had firmed a little over recent months”.

The board also seems now quite content that the housing bubble has subsided but did give a nod to the “relatively high unemployment rate” as suggesting spare capacity in the economy would linger. The meeting was of course held before the release of the startling October jobs numbers.

The hawkishness contained in the minutes would appear to put paid to any rate cut speculation, although the board did reiterate that the inflation outlook still offered “some scope for further easing”. Call that the put option that provides the downside hedge for an upside trade on the Australian economy.

At Commonwealth Bank’s AGM, held yesterday, the CBA chairman declared the bank was optimistic about the transition away from the mining investment boom, albeit acknowledging it would take some time. ANZ’s chief economist weighed in, on the release of the weekly ANZ-Roy Morgan consumer confidence survey, suggesting that the recent trend provided “a good sign ahead of the critical Christmas season”.

And of course overnight, oil prices had rebounded strongly. There was thus a little bit for everyone yesterday – energy rallied 3.7% (although oil prices were right back down again last night), the banks rallied 2.3% and consumer discretionary rallied 2.7%. But gains were solid across all sectors nonetheless. It was a session in which the most popular stocks were the least popular of the previous weeks and months – the likes of BHP, Santos, Woolies and Telstra.

While there was an Australia-specific element to yesterday’s local surge, the macro influence of post-Paris buying nevertheless underscored and flowed across the globe. The Japanese and Hong Kong markets were both up 1.2%. London was up 2.0%, Germany 2.4% and France, the centre of attention, jumped 2.8%.

In Europe there is no doubt an expectation that if the ECB had harboured any doubt about extending QE, Paris snuffed those out. News of French fighter planes launching an all-out attack on IS, with Russia now also redirecting its attention to IS, is also likely a source of revenge-fuelled optimism.

Jittery

But none of the above means Europe, and the world, is not on edge. Wall Street opened strongly again last night, buoyed by a positive CPI reading, but when the Dow was up over 100 points news came through after the close of the European markets that a football stadium in Hanover, where Germany and the Netherlands were set to play a friendly in front of Angela Merkel, had been evacuated and the game cancelled.

It was all about a suspicious suitcase and came to nought, but it was enough to turn Wall Street around and send the indices back to flat closes. Oil prices fell back again, which also helped to sour the mood.

The US CPI rose in October for the first time in three months, up 0.2%. The annual rate remains a paltry 0.2% but that’s all about oil prices. The core CPI, ex food &energy, also rose 0.2% in the month but is up 1.9% annually, just shy of the Fed’s 2% target.

There is nothing in these numbers that would stop the Fed raising next month.

Wall Street was also surprised by some very strong earnings results from Dow components Wal-Mart and Home Depot. We might say Wal-Mart is a supermarket on steroids and Home Depot is Bunnings on steroids, and given the sort of crowds one sees at such hardware-houses on weekends we could arguably call both consumer “staples”.

The 4% share price jumps both stocks enjoyed would reflect some return to confidence in the US consumer in the wake of shocking results from US department stores, representing consumer “discretionary”, but also representing “obsolete model”.

Overhanging Wall Street is nevertheless the rising US dollar, which was up another 0.2% last night to 99.59 on its index as the euro continued its fall.

Commodities

It appears the geopolitical element which sparked a rally in oil prices on Monday night was no more than a short-covering snap-back. Last night oil markets were back to worrying about just what the upcoming weekly US inventory data would reveal and prices fell all the way back from where they had bounced to. West Texas is down US$1.33 or 3.2% to US$40.73/bbl and Brent is down US$1.29 or 2.9% to US$43.58/bbl.

The US CPI data did nothing to gladden the hearts of metals traders, given Fed rate rise and strong greenback implications. On the LME, only aluminium was spared last night as copper, lead and tin fell around half a percent while nickel fell 2% and zinc fell 3%.

Iron ore fell 3% as well, down US$1.50 to US$45.80/t.

Gold fell US$10.30 to US$1071.60/oz.

The Aussie did not much move during yesterday’s session, so its 0.4% increase from this time yesterday to US$0.7119 is not about the RBA minutes and is in defiance of the stronger US dollar. Maybe offshore forex traders took over the RBA trade.

Today

The SPI Overnight closed down 24 points or 0.5% which is to be expected given yesterday’s surge and the fall in commodity prices overnight.

Locally we’ll see September quarter wage price data today in the lead-up to our GDP result in early December. Tonight it’s the Fed’s turn to release minutes.

Orica ((ORI)) will release its FY15 result today amidst a very busy day of AGMs.
 

All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available in the FNArena Cockpit.  Click here. (Subscribers can access prices in the Cockpit.)

(Readers should note that all commentary, observations, names and calculations are provided for informative and educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions. All views expressed are the author's and not by association FNArena's - see disclaimer on the website)

All paying members at FNArena are being reminded they can set an email alert specifically for The Overnight Report. Go to Portfolio and Alerts in the Cockpit and tick the box in front of The Overnight Report. You will receive an email alert every time a new Overnight Report has been published on the website.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" - Warning this story contains unashamedly positive feedback on the service provided. www.fnarena.com

article 3 months old

The Overnight Report: Aujourd’hui Je Suis Un Parisien

By Greg Peel

The Dow rose 237 points or 1.4% while the S&P gained 1.5% to 2053 and the Nasdaq added 1.2%.

Resilience

Wall Street was accelerating to the downside when it closed on Friday night and commodity prices were all again mostly lower in that session, ensuring the local market would be under pressure yesterday morning. The Paris attacks added an additional level of expected downside.

But the world, it seems, has become inured to terrorist attacks and no longer reflects global fear through stock market sell-offs. History shows that such terror events initially prompt market sell-offs before recoveries that are swift and solid. This time around the world has decided the initial sell-off is the unnecessary part.

The ASX200 plunged 72 points from the open yesterday. The SPI futures had closed down 37 points on Saturday morning so the balance could be considered the Paris effect, but the index very quickly rebounded.

On a technical basis, the breach of 5000 brought in the buyers at least to some extent, with almost all sectors ultimately finishing in the red. The industrials sector (-1.3%) was one of the hardest hit, as therein lies all manner of companies connected to overseas travel and tourism. But a large part of the rally back to a less ominous close can be attributed to energy (+1.6%). On expectation the war against IS will intensify in the Middle East, buyers were no doubt anticipating a bounce in oil prices.

The index closed right on the pivot point of 5000, waiting to see what might transpire overnight.

Meanwhile Japan released its September quarter GDP result yesterday which showed a 0.8% year on year contraction, confirming that Japan is yet again in technical recession. The June quarter saw 0.7% contraction. While the result is another thorn in the side of Abenomics, and underscores just how significantly Japan’s earlier sales tax increase has hit an economy 60% reliant on consumption, economists are confident the December quarter will provide a bounce-back given improvement in more recent data releases.

Defiance

Tourism represents some 7% of French GDP, and already airlines and travel companies are offering refunds to those having planned trips to France. Fashion and high-end retail are also a major beneficiary of tourists to Paris. The French stock market plunged on the open last night but very quickly recovered to a flat close. Ditto the German market, while the London market fell briefly before rallying 0.5%.

Wall Street never blinked. It was a stumbling start, but buyers came in on a steady trend all session to a solid close. Commentators were surprised, expecting at least some fearful reaction in the country most likely to see terrorist events. The response was made even more surprising by the two steep falls on Thursday and Friday and Friday’s very weak close, which suggested the US indices could be in for more selling this week.

Wall Street also shrugged off another weak reading for manufacturing in the New York Fed region, with the Empire State index coming in at minus 10.7 from minus 11.4 last month when economists had forecast improvement to minus 6.5.

Traders also ignored a stronger US dollar, which is up 0.5% on its index to 99.39 on a typical safe haven trade. The strong greenback is a major factor in US September quarter earnings showing negative growth for the second consecutive quarter and negative revenue growth for the third. The stronger dollar also impacts on commodity prices, and for the US the most important commodity is oil.

Trouble in the Middle East? Oil would typically rally. But then IS has been in operation for some time now and oil prices have been retesting lows. Thus oil prices actually fell on the open on Nymex last night.

Then news came through US air strikes had begun targeting IS oil truck convoys. West Texas crude turned around on the news and rallied strongly, supporting stock indices.

Commodities

West Texas is up US$1.29 or 3.2% at US$42.06/bbl and Brent is up US$1.26 or 2.9% at US$44.87/bbl.

In earlier times one would expect a rally in gold as the haven against all things geopolitical. Those days are gone however, and if anything gold tends to be sold off at times of crisis in order to cover margin calls on plummeting stock positions. But stocks did not plummet and while gold did see some buying earlier on, it is currently flat at US$1081.90/oz.

The stronger greenback provided a headwind, as it did for base metal prices.

Sentiment is already at a low ebb on the LME. The Paris attacks, the stronger greenback, the Japanese recession and a weaker than expected reading on US manufacturing did nothing to brighten the mood last night. Copper was slammed, down 2.2%. Zinc fell 2%, aluminium and nickel fell 1.5% and lead and tin fell 1%.

Iron ore fell US10c to US$47.30/t.

The Aussie is down 0.5% to match the greenback’s rally, at US$0.7093.

Today

The SPI Overnight is up 66 points or 1.3%. We shall overcome.

The minutes of the November RBA meeting are out this morning and economists will be looking for clues, but the meeting pre-dated the astonishing October jobs report.

The US October CPI is out tonight, playing into Fed speculation.

AusNet Services ((AST)) will report interim earnings today while a large number of AGMs will take place across the country, including that of Commonwealth Bank ((CBA)).
 

All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available in the FNArena Cockpit.  Click here. (Subscribers can access prices in the Cockpit.)

(Readers should note that all commentary, observations, names and calculations are provided for informative and educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions. All views expressed are the author's and not by association FNArena's - see disclaimer on the website)

All paying members at FNArena are being reminded they can set an email alert specifically for The Overnight Report. Go to Portfolio and Alerts in the Cockpit and tick the box in front of The Overnight Report. You will receive an email alert every time a new Overnight Report has been published on the website.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" - Warning this story contains unashamedly positive feedback on the service provided. www.fnarena.com

article 3 months old

The Monday Report

By Greg Peel

Central Bank Tango

Wall Street was upset on Thursday night that Janet Yellen did not take the opportunity in a speech to provide more clarity on a December Fed rate hike in the wake of the very strong US jobs numbers. So stock markets were sold off on uncertainty and frustration.

But commodity markets are more certain and see a real threat in the dichotomy that is opening up across the globe regarding monetary policy. Commodities are traded in US dollars, and the Fed is set to raise, thus boosting the US dollar. With the exception of the UK, where the BoE is still holding back on a rate rise, every other major economy is looking at further stimulus. The eurozone will extend QE in December, China will continue ongoing stimulus measures and the BoJ is expected to be forced into extending QE anytime soon.

Thus we have the problem of commodity prices falling both on weaker demand from struggling economies, a rising US dollar, and on overriding global oversupply issues.

Falling commodity prices were always going to be the factor for the local resource sectors on Friday and so it was materials fell 2.2% and energy 3.5%. Within those sectors we also have the individual issues of BHP, the tragedy in Brazil and its share price being front page news, and Santos, its balance sheet issues and just what the company is planning to do.

A stronger US dollar means a lower Aussie dollar and that is good news for the Australian economy but not for offshore investors in the near term. If the Fed does start raising then the Aussie is destined to head into the sixties. As US investors lose on the falling currency, they are best to get out now and get back in when the currency has adjusted and yields are even more attractive.

Every sector took a beating on Friday.

Euro Woes

The attacks in Paris were yet to occur when the first estimate of eurozone September quarter GDP was released on Friday night. It showed a slowdown in the pace of growth to 0.3% from 0.4% in June, missing expectations of a steady 0.4%. Year on year growth is 1.2%.

The “miss” was blamed on Germany, which posted the same 0.3% growth when 0.4% was expected. France managed 0.3%, as expected. For major exporter Germany, the slowing Chinese economy is having a significant impact.

Expectations that the ECB will announce an extension to QE in December are already largely baked in, and this GDP result only serves to underscore that assumption. The euro did fall on Friday, pushing the US dollar index up 0.3% to 98.93, and most believe the falls will continue toward parity.

European stock markets were also weaker on Friday night as the whole world adjusts to monetary policy imbalances, but as noted, the terrorist attacks in Paris were yet to come. European markets will have their first chance to respond tonight.

Retail Woes

The problem for the Fed is that the data in the US, outside of jobs, are not looking flash.

Retail sales grew only 0.1% in October when economists had forecast 0.4%. Lower oil prices were a factor, as were a drop-off in auto sale value from the month before, suggesting discounting. Ex of autos and energy, sales rose 0.3%.

Within the sector, the death of bricks & mortar retail continues. In the wake of an earlier poor result from Macy’s, Friday night saw a similarly weak result from JC Penney and a profit warning from Nordstrom, sending both share prices down 15% each.

US producer prices fell 0.4% in October when a 0.3% gain was expected. The core PPI, ex of food & energy, fell 0.1%.

Looking at these numbers in isolation, one would not be expecting the central bank to be considering tightening policy. Yet in contrast, the Michigan Uni fortnightly consumer sentiment index showed a rise to 93.1 from a previous 90.0.

Retail and resources led Wall Street lower on Friday night, in a continuation of the US dollar-related selling across the week. The Dow fell 202 points or 1.2% while the S&P lost 1.1% to 2023 and the Nasdaq fell 1.5%.

The broad market S&P500 has broken down through its 200-day moving average – a bearish signal – as Wall Street posted its worst week since early September. The S&P is now back to being down for the year.

Commodities

On Friday night the International Energy Agency published a forecast for global oil demand growth of 1.2m barrels per day in 2016, down from the 1.8mbpd run rate for 2015 to date. This year’s demand growth actually represents a five-year high, which just goes to show the impact of oversupply.

On that note, the US rig count rose by 2 last week, to 574. Doesn’t seem earth-shattering, but it is the first time in eleven weeks the count had risen rather than fallen. With oil markets already suffering weakness, it was no surprise that Friday night saw West Texas fall another US92c to US$40.77/bbl and Brent fall US66c to US$43.61/bbl.

WTI’s 8% price fall over the week is the biggest since March.

The LME opened on Friday night with yet more selling. If Chinese weakness and prospects of a rising US dollar aren’t enough, weak US retail sales and inflation numbers didn’t help either. But base metal prices have fallen low enough for some to start risking the contrarian trade. Prices recovered from session lows by the end of the day. Aluminium, copper and lead still closed mildly weaker but nickel, tin and zinc posted modest gains.

The slight tick-up in the iron ore price on Thursday night proved but a blip. Iron ore fell US40c to US$47.40/t on Friday night.

Gold was relatively steady at US$1182.50/oz.

The Aussie was also steady at US$0.7125 on Saturday morning.

The SPI Overnight closed down 37 points or 0.7% on Saturday morning.

The Week Ahead

Then came Paris.

The G20 leaders may be steeling their resolve in Turkey but the next 24 hours will indicate just what dent to global confidence the attacks will precipitate. On the 37-point SPI fall alone pre-attacks, the ASX200 will be looking closely at the psychological 5000 support level.

Japan will release its September quarter GDP result today. The Bank of Japan will hold a policy meeting on Thursday and the world is still assuming an extension to QE must be a possibility as a counter to Europe and China, with a Fed rate hike being the swing factor.

The US will see the Empire State activity index tonight, housing sentiment and industrial production tomorrow night, and housing starts on Wednesday. The minutes of the October Fed meeting will also be closely scrutinised on Wednesday, ahead of the Philadelphia Fed activity index and Conference Board leading economic index on Thursday.

Australia sees vehicle sales today followed by the minutes of the Cup Day RBA meeting tomorrow. At that point the ridiculously strong October jobs numbers were yet to be released.

On Wednesday the September quarter wage price index will be released, commencing the countdown to our own GDP result due in early December.

The AGM season sees a second big wave this week, with meetings to be held by the likes of Commonwealth Bank ((CBA)) and a shell-shocked BHP Billiton ((BHP)), along with a struggling Myer ((MYR)) and a whole lot of others to boot.

AusNet Services ((AST)) will report interim earnings tomorrow, Orica ((ORI)) releases full-year earnings on Wednesday followed by interims for James Hardie ((JHX)) and Programmed Maintenance ((PRG)) on Thursday.

Rudi will appear on Sky Business on Thursday at noon and again between 7-8pm for the Switzer Report, and potentially again on Friday's Your Money, Your Call - Bonds (not confirmed as yet).
 

For further global economic release dates and local company events please refer to the FNArena Calendar.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" - Warning this story contains unashamedly positive feedback on the service provided. www.fnarena.com

article 3 months old

Next Week At A Glance

For a more comprehensive preview of next week's events, please refer to "The Monday Report", published each Monday morning. For all economic data release dates, ex-div dates and times and other relevant information, please refer to the FNArena Calendar.


By Greg Peel

As the Fed leaves the entire would uncertain and frustrated over monetary policy direction, or lack thereof, the ECB’s intentions are less vague. Tonight sees the release of the first estimate of eurozone September quarter GDP.

The Bank of Japan has simply remained silent on the subject of monetary policy when many have been expecting some recourse to both ECB QE and Chinese stimulus measures. Monday sees the release of Japan’s GDP.

The BoJ will hold a policy meeting on Thursday.

If the Fed is still waiting for last minute US data to provide a guide, next week sees housing sentiment and starts, the CPI, industrial production, leading economic indicators and the Empire State and Philly Fed activity indices.

Wednesday night see the release of the minutes of the October Fed meeting, which will undoubtedly provide no further clues.

The minutes of the October RBA meeting are out on Tuesday and further clues will also be sought, this time in the other direction.

Just when you thought there couldn’t possibly be any more local corporate AGMs, the next two weeks bring a late barrage.

Orica ((ORI)) and James Hardie ((JHX)) will report earnings next week.
 

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" - Warning this story contains unashamedly positive feedback on the service provided.