Australian market expected to open lower 23/08/19

Australian market expected to open lower 23/08/19

OPENING CALL: The Australian share market is expected to open lower. The SPI Futures is expected to be down 15 points.

 

Shares of Boeing ascended on a signal that the aerospace giant’s troubled fleet of 737 MAX aircraft is moving toward a return to service.

 

Alphabet’s Google News and other digital platforms don’t reward publishers’ work adequately and play down articles from certain types of sites.

 

Overnight Summary

 

 

Each Market in Focus

 

 

A raft of generally well-receiving earnings reports helped buoy Australian shares.
Outperforming most benchmarks in the region, the S&P/ASX 200 settled up 0.3% at 6501.8.

The heavily-weighted big banks lent support, with Westpac, ANZ and National Australia Bank each up at least 0.8%. But it was the energy subindex that made the strongest push, with Santos and Origin Energy up 3.5% and 2.4%, respectively, following results.
Also following results, Coca-Cola Amatil gained 5.8%, Coles lifted 2.1% and Medibank Private added 3.0%. However, South32 fell 4.4% on soft annual earnings and a weaker-than-expected dividend. ERM Power soared 42% after unveiling a takeover bid from Shell. 

The S&P 500 flipped between small gains and losses intraday after weaker-than-expected manufacturing data raised fresh worries over the health of the economy.
The broad index ticked down 0.1%, as declines in material stocks offset gains in financial shares. The Dow Jones Industrial Average climbed 58 points, or 0.2%, while the Nasdaq Composite slid 0.3%.
Stocks initially tumbled in morning trading after preliminary manufacturing data showed U.S. factory activity slowed in August. The Markit manufacturing purchasing managers index fell to 49.9 in August, dropping below 50 for the first time in about a decade.
Weak data out of Germany also added to fears that slowing global growth could be spilling over to the U.S., and the bond market sent a fresh warning about the risk of a potential recession.

Gold futures settled with a loss, at their lowest in almost two weeks, as strength in U.S. Treasury bond yields dulled the metal’s appeal as a safe haven.
Uncertainty over the path for U.S. interest rates also pressured prices, as two top Federal Reserve officials indicated that they would not support further interest-rate cuts.
December gold fell $7.20, or 0.5%, to settle at $1,508.50 on Comex. That was the lowest most-active contract settlement since Aug. 9, according to FactSet data.
In other commodity markets, September wheat prices were up 4 3/4 cents at $4.67 1/4 cents.

Oil futures ended lower, weighed down by expectations for surplus supplies, with the economy and energy demand moving back into focus on the first day of the Jackson Hole economic policy symposium in Wyoming.
West Texas Intermediate crude for October delivery on the New York Mercantile Exchange fell 33 cents, or 0.6%, to settle at $55.35 a barrel. Prices, based on the front-month contract, trade about 1% higher than the week-ago finish, but down 5.5% for the month so far. October Brent crude shed 38 cents, or 0.6%, to $59.92 a barrel on ICE Futures Europe — logging its first decline in five sessions.

The U.S. dollar slipped early after the flash reading for IHS Markit U.S. Manufacturing PMI fell to 49.9 — less than economists in a WSJ survey predicted and its lowest point in almost 10 years. 
The data added to evidence that the economy is decelerating and gives ammunition to Fed officials who may want to continue lowering interest rates later this year.
The WSJ Dollar Index, which measures the currency against a basket of 16 others, was recently at down 0.04% at 91.28. 

The Stoxx Europe 600 fell 0.4% after minutes from the European Central Bank showing broad support for prolonged stimulus measures failed to ease recession concerns.
The index was down 1.51 points to 374.29, and is down for two of the past three trading days.
The FTSE 100 Index slumped 1.1% to 7128 as the pound strengthened 0.9% in response to comments by German Chancellor Angela Merkel about the UK’s plan to leave the EU.
Merkel appeared to suggest the EU and UK could reach a deal by the Oct. 31 exit deadline, seemingly contradicting her earlier suggestion that the UK needed to find a solution within 30 days. Still, some analysts still pointed out that the comments may only indicate willingness to reach a deal, rather than any increased likelihood of being able to achieve one.
Meanwhile, the German DAX was down 55.81 points, or 0.47%, to 11747.04 while the French CAC was down 47.23 points, or 0.87%, to 5388.25.

In Asia, stocks were mixed, with the Shanghai Composite down 0.1%, Hong Kong’s Hang Seng down 0.9% and Japan’s Nikkei 225 up 0.1%.
Japanese stocks finished the session virtually flat as gains in auto and financial stocks just about offset losses in electronics. The Nikkei ended up 0.04% at 20628.01.
South Korea’s benchmark Kospi closed down 0.7% at 1951.01 snapping its three-day winning streak. Lower likelihood of aggressive rate cuts by the Fed and uncertainties over U.S.-China trade talks dampened sentiment to prompt the swing, Seoul-based Kiwoom Securities analyst Seo Sang-young said.
Hong Kong’s benchmark Hang Seng Index closed down 0.8% at 26048.72, surrendering the previous session’s slight gains as major banks in the city took out ads calling for the restoration of social order while pro-democracy protests grind on. Volatility is set to be the market’s main theme in the near term, brokerage Guodu Hong Kong said.
The FTSE Bursa Malaysia KLCI Index closed 0.5% higher at 1602.47, led by financial stocks.
Meanwhile, India’s BSE Sensex fell for the third consecutive session as a disappointing earnings season and faltering economic growth weigh on sentiment. The BSE Sensex fell 1.6% to 36472.93, with most of its constituents down.


« »



Start Trading
in Minutes

Open an account now

bullet Access +10,000 financial instruments
bullet Auto open & close positions
bullet News & economic calendar
bullet Technical indicator & charts
bullet Many more tools included

By supplying your email you agree to FP Markets privacy policy and receive future marketing materials from FP Markets. You can unsubscribe at any time.







© FP Markets 2019