Australian market expected to open higher 04/10/19

Australian market expected to open higher 04/10/19

OPENING CALL: The Australian share market is expected to open higher. The SPI200 futures contract expected to open up 35 points.

President Trump called for Ukraine and China to investigate his political rival, Joe Biden, doubling down on his efforts to push foreign countries to undertake probes that could benefit his re-election campaign. 

 

 

MGM Resorts reached a settlement estimated at $735 million to $800 million for claims related to the mass shooting in Las Vegas.  

 

 

 

Overnight Summary

 

 

Each Market in Focus

 

 
 
Australia’s ASX200 index closed 2.2% lower at 6493 as investors globally dumped stocks on growth concerns.  

Data showing another solid monthly trade surplus — slightly narrower than anticipated, but still near record highs — did little to lift the gloom.  

Gold miners fared the best on bets that investors will buy bullion as a perceived safe haven. Newcrest Mining closed 2.8% higher while Northern Star added 3.5%. Otherwise, shares were widely lower.  

The big miners, BHP and Rio Tinto, lost 3.2% and 4.2%, respectively. Among banks, Commonwealth Bank fell 2.8% and rival Westpac ended 2.4% lower.  

U.S. stocks swung sharply in another volatile session intraday as investors bet a string of disappointing economic data would spur the Federal Reserve to continue cutting interest rates.  

The Dow Jones Industrial Average dropped as much as 335 points – and then recovered all of those losses to turn higher-after data showed services activity softened in September.

The Institute for Supply Management said its nonmanufacturing index hit a three-year low, sparking fears a manufacturing slowdown had spread to other parts of the economy.  

The blue-chip index had already tumbled about 840 points, or 3.1%, over the two previous trading sessions on worries about an economic downturn. Reports earlier in the week showed U.S. factory activity slid to a 10-year low in September and the pace of job creation in the private sector slowed.  

The services data added to the anxiety, prompting traders to increase their bets on further easing by the Fed. 

 
 
Gold prices settled higher, tallying a third consecutive session gain, as a drop in the September U.S. ISM services sector index fed worries about the health of the economy, boosting haven demand for the precious metal.  
 
 
U.S. oil prices extended a streak of declines to eight sessions, closing 0.4% lower at $52.45/bbl, an eight-week low, on worries a slowing U.S. economy could worsen a global economic downturn.  
 

The WSJ Dollar Index was recently down 0.21% at 91.64, while the yen was up around 0.4% against the dollar. Earlier, the dollar fell against a broad range of currencies while haven assets such as gold and the yen rose after weaker-than-expected U.S. service sector data stoked recession fears.

The Stoxx Europe 600 fell less than 0.1% as fresh data added to the gloomy outlook for the broader European economy.  The U.K. services purchasing managers index hit a six-month low of 49.5, below the 50 level that marks contraction. The figures reignited concerns that the economy is in recession, analysts at Capital Economics said, adding that economic performance will remain “well below par” while Brexit negotiations drag on.  

London stocks closed lower, as the FTSE 100 extended its October selloff amid intensified worries about a global economic downturn. London’s blue-chip index fell 0.6% to 7077.64 in its fourth consecutive day in the red, but pared its losses in late trade. The FTSE 100 has slumped 4.5% so far this month. Steelmaker Evraz led the blue-chip fallers, down 3.8%, while stock-market operator London Stock Exchange Group was the biggest gainer, up 2.3%.  The French CAC-40 Index was up 16.00 points, or 0.29%, to 5438.77.  

In Asia, Japan’s Nikkei was down 2% and Hong Kong’s Hang Seng ticked up 0.1%. Stock markets in China and South Korea were closed.  

In Japan, all sectors declined to drag the Nikkei Stock Average down 2.0% to 21341.74. Weak jobs and manufacturing data from the U.S. combined with geopolitical tensions — including a fresh trade tiff between the E.U. and the U.S. — to stoke investor concern about the global economic outlook, pushing stocks down around the world. Consumer stocks were one of the worst performers on the Nikkei  

Hong Kong shares closed higher, clawing back their losses from the early morning trade despite weakness in most Asian markets. The benchmark Hang Seng closed 0.3% higher at 26110.31. However, investors remained concerned about the gloomy global outlook amid weaker global economic data and U.S.-China trade war uncertainties. Gaming stocks were one of the best performers on the index  


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