Good morning team, Chris Conway your Head of Research here with your First Look.
The Aussie market is poised to open with a modest gain this morning, with US markets little changed ahead of the NY close.
Global equities continue to trade in a narrow range as earnings validate current valuations and amid increasing chatter that the outlook is increasingly clouded by political risk.
SPI futures are up 5 points, at 5601.
Local data: RBNZ policy decision, NZ building permits December; Australia HIA new home sales December, NAB business confidence fourth quarter, RBA governor Lowe speaks tonight
Capital Economics ahead of the RBNZ decision: “Since the RBNZ cut the official cash rate in November to a record low of 1.75 per cent, developments in the domestic economy have all-but confirmed that rates will remain on hold at this policy meeting. What’s more, in the accompanying Monetary Policy Statement we suspect that the Bank will revise up its inflation forecasts following the stronger-than-expected Q4 inflation figures. Nonetheless, with core inflation likely to remain stubbornly low, rate hikes seem a long way off. We expect monetary policy to remain unchanged throughout 2017 and perhaps 2018 too.”
Overseas data: Japan machine orders December, US Fed speakers – Bullard, Evans
- SPI up 5 points, to 5601
- AUD at US76.33¢
- Dow Jones -0.2%; S&P500 flat; Nasdaq +0.1%
- FTSE100 flat, CAC +0.3%, DAX -0.1%
- Spot gold +0.3% at $US1237.92 an ounce
- Brent oil +0.4% at $US55.25 a barrel
- Iron ore +0.3% at $US83.53 a tonne