Good morning team, Chris Conway your Chief Market and Trading Strategist here with your First Look.
The Aussie market is poised to open slightly weaker later this morning, receiving little direction from either Europe or the US.
Trading overseas was subdued for a second straight session, not helped by Donald Trump tweeting that he’s continuing to work on a plan to check drug prices. That knocked the wind out of drug maker shares in Europe and on Wall Street.
Also not helping sentiment was the negative reaction from Republicans in Congress to the party’s proposed new health care coverage plan: it would appear to be dead on arrival.
Local traders are not getting much help either from base metals, gold or oil as sentiment has shifted to neutral at best. Iron ore edged ever so slightly higher, though it remains below the $US90 a tonne mark.
What’s on today:
Local data: NZ economic survey of manufacturing fourth quarter
Overseas data: China trade balance; Japan GDP; US ADP employment February
Capital Economics on China trade: “Trade growth is always volatile at the start of the year due to shifts in the timing of Chinese New Year. While both export and import growth jumped in January, this boost is likely to have reversed last month, resulting in a sharp pull back in headline growth. We expect the trade surplus to have fallen from $US51.3bn to $US11.3bn.”
Trading Ex Div: BXB, CTD, HSN, HSO, IEL, EFL, IRE, ISD, MLD, MND, SDF, SHL, VLW
- SPI down 10 points at 5738
- AUD at US75.94¢
- Dow Jones -0.2%; S&P500 -0.2%; Nasdaq -0.1%
- FTSE100 -0.2%, CAC -0.4%, DAX +0.1%
- Spot gold -0.7% at $US1216.21 an ounce
- Brent oil -0.3% at $US55.87 a barrel
- Iron ore +0.1% at $US89.80 a tonne
What happened overnight: