Chinese IPOs will restart today after a four-month absence. Shandong Longda Meat Foodstuff, Wuxi Xuelang Environmental Technology, and Feitian Technologies will be the first to list on local bourses since February.
There's been some concern over whether this will draw funds away from the market and lead to a liquidity crunch. This should continue to weigh down on sentiment. We expect China A50 to test the 6632.60 resistance level, with worries still lingering over a property slump.
Iraq’s oil minister expects crude exports to accelerate next month, with signs of the conflict in the country easing and appearing not to have a big impact so far on output. The outlook is also being lifted with the US Federal Reserve opening the door to more US oil exports by reclassifying processed condensates as petroleum products eligible for export. This could see give it further momentum to test its resistance of $112.15.
With the consumer discretionary sector under pressure as unseasonal temperatures sees sales waning; we would not be surprised to see a downgrade to guides for Myer in line with downgrade that was seen at Kathmandu. The sector as a whole has been under pressure as the federal budget and sluggish wage growth hits back pockets which is likely to translate into lower sales at the registers. Myer has been in a down trend and having seen slightly lower than expected numbers in the first half further disappointment is on the cards.
The first day of its flagship annual event Google I/O saw quite a few big announcements on the product front. It revealed an improvement to the Android operating system, an update on its smartwatch plans, in-car control features, Android TV, and a low-cost smartphone under $100.
The market has reacted positively on the news so far, with a slight run up in Google’s share price. With more product announcements likely from day two of the event tonight, we expect the positive sentiment to give a further lift to the stock.