Friday: 13th October 2017
Each Market In Focus
- The Australian share market is poised to open flat after Wall Street took a breather from its recent run of gains.
- At 7.00 AEDT on Friday, the local share price futures index was down two points, or 0.03 per cent, at 5,766.
- The Australian share market overcame early falls on Thursday to close higher, as Bank of Queensland’s profit growth boosted the financial sector and energy producers were boosted by forecasts of stronger oil demand.
- The benchmark S&P/ASX200 index rose 0.39 per cent to 5,794.5 points, its highest level since June 29.
- In local news on Friday, the Reserve Bank of Australia is due to publish its latest Financial Stability Review, which should offer its perspective on home loan borrowing and offer clues about the next move in the cash rate.
- The Australian dollar was flat against its US counterpart on Friday morning, as the greenback drifted after the Federal Reserve showed a more guarded view towards inflation.
- The local unit was worth 78.22 US cents, up just slightly from 78.21 US cents on Thursday.
60 Day High. This is a list of codes that made a new 60 day High in the past 2 days. We use the 60 day high as this would infer that a breakout in price has occurred after a period of consolidation OR the stock is moving up each day if the code shows repeatedly. ( source MetaStock )
60 Day Low. This is a list of codes that made a new 60 day LOW in the past 2 days. We use the 60 day low as this would infer that a breakdown in price has occurred after a period of consolidation OR the stock is declining each day if the code shows repeatedly. ( source Metastock)
Scans Powered by Metastock. Click here for more information
US stocks have edged lower, pausing after recent gains, after AT&T said it lost subscribers in the last quarter, while banks fell following results.
JPMorgan Chase and Citibank managed to beat profit and revenue estimates despite reporting a drop in trading revenue, but JPMorgan fell about 0.9 per cent, while Citigroup dropped 3.1 per cent.
Bank of America and Wells Fargo, scheduled to report on Friday, were also lower, dragging the financials index down 0.7 per cent.
The Dow Jones Industrial Average was down 31.87 points, or 0.14 per cent, to 22,841.02
The S&P 500 lost 3.4 points, or 0.13 per cent, to 2,551.84
The Nasdaq Composite dropped 7.11 points, or 0.11 per cent, to 6,596.44.
AT&T tumbled 5.7 per cent after the No. 2 US wireless carrier said it lost 90,000 US video subscribers in the third quarter due to intense competition and the impact of recent hurricanes.
Related stocks also fell, including Comcast, down 4.3 per cent.
Viacom sank 2.6 per cent after warning that Charter Communications subscribers may lose access to its channels as the expiration looms for a distribution deal. Charter fell 2.1 per cent.
With the S&P 500 up about 14 per cent in 2017, investors are hoping earnings growth can help justify valuations.
S&P 500 companies posted double-digit profit gains in both the first and second quarters.
- Gold prices climbed after minutes from the Federal Reserve’s last meeting, released Wednesday, suggested divided opinions on whether to raise interest rates again this year.
- Futures for December delivery rose 0.56 to $1,295.50 a troy ounce on the Comex division of the New York Mercantile Exchange.
- Copper prices also gained, rising 0.8% to $3.1200 a pound in New York.
- Gold prices have been pressured this year by strong economic data and higher interest rates.
- The precious metal pays its holders nothing and struggles to compete with yield-bearing assets when borrowing costs rise.
- IRON ORE: $59.47 +2.06 ( November contract )
Oil prices fell, as concerns that rising U.S. production will offset efforts to rebalance the market resurfaced.
U.S. crude futures closed down 70 cents, or 1.4%, at $50.60 a barrel on the New York Mercantile Exchange, ending a three-session winning streak.
Prices slightly pared losses after falling as much as 2.2% earlier in the session.
Brent, the global benchmark, declined 69 cents, or 1.2%, to $56.25 a barrel.
Data released by the U.S. Energy Information Administration showed a 2.7-million barrel drop in crude-oil stocks last week.
However, oil stored at Cushing, Okla., the delivery point for U.S. stocks, increased by 1.3 million barrels, the EIA said.
That increase added to existing concerns that U.S. production will offset efforts by the Organization of the Petroleum Exporting Countries and other major producers to alleviate a global supply glut moving forward.
- The U.S. dollar edged higher intraday, boosted by stronger-than-expected U.S. employment data.
- The Wall Street journal Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently up 0.1% at 86.52.
- Initial jobless claims, a proxy for layoffs across the U.S., decreased to a seasonally adjusted 243,000 in the week ended Oct. 7, the Labor Department said.
- Investors have been keeping a close eye on U.S. data to determine whether the economy is strong enough for the Federal Reserve to raise interest rates a third time this year.
- Expectations of higher rates tend to boost the dollar, as they make the currency more attractive to yield-seeking investors.
- Many believe Friday’s consumer price data could play an important role in the Fed’s monetary policy outlook. Minutes from the central bank’s latest meeting, released Wednesday, showed that officials remained divided on whether a recent soft patch in consumer prices will last.
- The Australian dollar has edged higher against its US counterpart, as the greenback drifted while investors waited on US inflation figures.
- At 6:30 AEDT on Friday, the local unit was worth 87.27 US cents, up slightly from 87.21 US cents on Thursday.
- Britain’s top share index enjoyed a record close on Thursday, boosted by a fresh fall in Brexit bellwether sterling after the European Union’s chief negotiator Michel Barnier said talks are in deadlock.
- Britain’s FTSE 100 ended the day up 0.3 per cent, at 7,556.24 points.
- The heavily internationally exposed index earlier hit its highest intraday level in three months as the pound tumbled, but it is yet to better its 7,599-point record hit on June 2.
- Sterling slid against the dollar as Barnier said talks were in an “impasse” due to an elusive compromise over the amount Britain would contribute to the EU budget, though Prime Minister Theresa May said talks were making good progress.
- Energy suppliers Centrica and SSE recovered from their earlier losses, closing up 1.9 and 2.5 per cent respectively after a draft bill to cap electricity prices revealed few details about the specifics of the cap, dispelling investors’ fears.
- Financials took the most points off the index, with shares in Asia-exposed HSBC and Standard Chartered down 0.9 to 1.5 per cent, in line with falls among European bank stocks.
- MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.7 per cent to reach its highest since December 2007.
- Japan’s Nikkei was up 0.4 per cent after brushing 20,994.40, its highest since November 1996, while South Korea’s KOSPI added 0.55 per cent to mark a fresh record peak and Hong Kong’s Hang Seng scaled a decade-high.
- Hong Kong stocks ended higher on Thursday, tracking the global rally in equities and led higher by financial firms, which tracked gains in mainland peers and helped mitigate losses in energy shares.
- The Hang Seng index rose 0.2 per cent, to 28,459.03 points, while the China Enterprises Index gained 0.8 per cent, to 11,500.34 points.
- The S&P/NZX50 Index edged up 7.14 points, or 0.008 per cent, to 8068.12.
Important News Events For Today
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