Australian market expected to open higher 19/08/19

Australian market expected to open higher 19/08/19

OPENING CALL: The Australian share market is expected to open higher. The SPI Futures is expected to be up 41 points.


Deere provided fresh evidence of weakening conditions in the U.S. manufacturing sector, saying lower demand for U.S. farm commodities is discouraging farmers from buying its machinery.


Qualcomm has reached a new patent-licensing deal with LG Electronics, helping land its technology in a suite of wireless devices while U.S. federal regulators continue to scrutinize its business practices on antitrust grounds.


Cathay Pacific CEO Resigns After Backlash Over Hong Kong Protests, Rupert Hogg is stepping down to “take responsibility” after the company suffered a backlash from Beijing over employees’ involvement in protests against the city’s government.


Overnight Summary



Each Market in Focus



Despite finishing little changed, Australian shares logged a third straight weekly decline after tumbling Thursday on heightened worries about global trade and economic growth.
The S&P/ASX 200 ended a choppy session down just 2.6 points at 6405.5, leaving the index 2.7% weaker for the week and down 6% so far this month.
The major and regional banks were all firmer, with Commonwealth Bank snapping a three-day run lower with a gain of 1.1%. Healthcare firms also advanced, lifted by Cochlear’s 3.9% gain and Healius’ 5% jump on their earnings reports. But that wasn't quite enough to counter weakness across the miners and energy companies. 

U.S. stocks climbed for a second consecutive session but notched modest weekly losses as investors continue to parse signs of slowing economic growth.
Positive developments around trade and reassurances of extra stimulus from central bakers buoyed markets, which were rattled earlier this week after weak data out of Germany and China exacerbated fears of a potential recession. Concerns about weakening corporate earnings and uncertainty over the pace of the Federal Reserve’s potential interest-rate cuts have added to the unease.
Many investors have rushed to cut their exposure to riskier stocks and instead sought the relative safety of U.S. government bonds, which sent the yield on the 30-year Treasury bond to a record low this week.
The Dow Jones Industrial Average ended the week down 1.5%, despite a rally of more than 300 points, or 1.2%. The blue-chip index suffered its steepest loss of the year Wednesday following the disappointing overseas data and ominous signals from the bond market.

Gold ended lower, distancing itself from the more-than six-year high it settled at a day earlier, but the metal’s investment haven appeal contributed to a third weekly climb in a row.

Oil futures finished higher, helping to contribute to a weekly gain for the commodity, as traders weighed weakening demand against supply uncertainties linked to the Middle East and OPEC production.
West Texas Intermediate crude for September delivery rose 40 cents, or 0.7%, to settle at $54.87 a barrel after trading as high as $55.67 during the session on the New York Mercantile Exchange. October Brent crude added 41 cents, or 0.7%, to $58.64 a barrel on ICE Futures Europe.

The ICE U.S. dollar index was little changed near two-year highs seen earlier this month.
The ICE Dollar Index, which tracks the dollar against a basket of six major currencies, stands near its highest level in more than two years and is up around 11% from its 2018 lows.
The WSJ Dollar Index recently was up 0.03% at 91.17.

In Europe, stocks were on the rise, with the pan-European Stoxx Europe 600 adding 1.3%.
The Stoxx Europe 600 index was down 1.93 points, or 0.52%, this week to 369.63.
London shares closed higher, as the FTSE 100 capped two days of heavy losses thanks to consumer-stock gains. London’s blue-chip index rose 0.7% to 7117.15, but still ended the week down 1.9%.
The French CAC was up 63.86 points, or 1.22%, on the day and ended the week 0.51% lower at 5300.79. The German DAX was up 150.07 points, or 1.31%, on the day and DAX ended the week 1.12% lower at 11562.74.

In Asia, Hong Kong’s Hang Seng gained 1%, stocks in Shanghai rose 0.3% and Japan’s Nikkei edged up 0.1%.
The Nikkei Stock Average ended up 0.1% at 20418.81 as some gains for consumer-demand stocks narrowly offset losses in financial and auto stocks. Daiwa House Industry was up 5.1% and Suntory Beverage & Food rose 2.0% while Japan Post Insurance lost 0.6% and Mitsubishi Motors dropped 1.4%.
Hong Kong’s Hang Seng Index closed up 0.9% at 25734.22, led higher primarily by property and consumer-goods companies. New World Development and CK Asset Holdings closed up 6.3% and 4.1% respectively, while knitwear maker Shenzhou International Group added 4.8%. The HSI fell 1.5% during the busy earnings week, as worries over economic growth and social unrest in Hong Kong spooked investors.
Meanwhile, Malaysia’s stock index closed slightly lower, but not without a better afternoon session on the release of stronger-than-expected 2Q GDP data. The Kuala Lumpur Composite Index closed 0.07% lower at 1599.22, and market breadth was positive, with gainers beating losers 390 to 325. The KLCI dropped almost 1.0% on the week, not helped by the escalation of the U.S.-China trade war. Investors will next watch for Malaysia’s corporate-earnings season, which picks up next week.
Singapore shares closed lower, weighed by banks and commodity suppliers. The FTSE Straits Times Index closes 0.4% lower at 3115.03.
India’s benchmark BSE Sensex closed slightly higher on a mixed day for Asian markets. The benchmark closed 0.1% higher at 37350.33, rising for the second consecutive day as investors continued to pick some recently-beaten blue-chips.
And South Korea’s Kospi fell 0.6% to 1927.17, down for the fourth-straight week.
Concerns about a global recession dragged the benchmark stock index down to a session low of 1911.72, but hopes for an easing of U.S.-China trade tensions capped and pared early losses.

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