Friday: 14th July 2017
Each Market In Focus
- The Australian market looks set to open lower, ignoring Wall Street’s modest positive lead.
- At 7.00 AEST on Friday, the share price futures index was down nine points, or 0.16 per cent, at 5,684.
- Locally, in economic news on Friday, the Australian Bureau of Statistics releases May overseas arrivals and departures data.
- No major equities news is expected.
- The Australian market on Thursday rose more than one per cent, with gains in nearly all sectors, following signals from the US Federal Reserve that it will gradually tighten interest rates.
- The broader All Ordinaries index lifted 61.4 points, or 1.07 per cent, to 5,779.1 points.
- The benchmark S&P/ASX200 index rose 63 points, or 1.11 per cent, to 5,736.8 points.
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)
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- Wall Street has posted slight gains and the Dow has hit another record high close, with financials rising ahead of profit reports due Friday from several big US banks.
- The financial index was the best performer among the 11 major S&P sectors, ending Thursday up 0.61 per cent. Quarterly earnings kick off on Friday with three of the biggest US banks – JPMorgan Chase, Wells Fargo and Citigroup – reporting results.
- Analysts estimate second-quarter earnings for S&P 500 companies rose 7.8 per cent from a year ago, with financials projected to have had the third-best profit growth among sectors, according to Thomson Reuters I/B/E/S.
- Over the last seven trading days, investors have more than doubled the amount of cash invested in a key financial sector fund, betting that second-quarter bank earnings will be strong.
- The Dow Jones Industrial Average rose 0.1 per cent to 21,553.09, the S&P 500 gained 0.19 per cent to 2,447.86 and the Nasdaq Composite rose 0.21 per cent to 6,274.44.
- Federal Reserve Chair Janet Yellen told a Senate panel on Thursday that it would be “quite challenging” for US growth to reach a three-per cent target set by President Donald Trump.
- Gold prices turned lower, after Federal Reserve Chairwoman Janet Yellen said she believed a recent downturn in inflation won’t last.
- Gold for August delivery closed down 0.2% at $1,217.30 a troy ounce on the Comex division of the New York Mercantile Exchange. Prices were as high as $1223.60 a troy ounce earlier in the session.
- IRON ORE: $63.70 -0.35 ( August contract )
- Oil prices rose, with growing momentum behind the International Energy Agency’s prediction of higher global demand.
- In its closely watched monthly oil market report, the IEA said it now expects global demand to rise by 1.5% this year to 98 million barrels a day, driven in part by rising consumption in Germany and the U.S. during the second quarter.
- The Paris-based adviser to governments and companies raised its 2017 demand forecast by 100,000 barrels a day, compared with a previous estimate last month.
- Oil prices initially fell after the IEA report, with investors focused on rising production in June from the Organization of the Petroleum Exporting Countries, which hit its highest level of the year at 32.6 million barrels a day.
- Light, sweet crude for August delivery settled up 59 cents, or 1.3%, at $46.08 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, gained 68 cents, or 1.4%, to $48.42 a barrel on ICE Futures Europe.
- They had both traded at losses, about $1 lower than their settlement price, before surging to gains around the traditional start of U.S. trading hours.
- The U.S. dollar wavered as investors dissected Federal Reserve Chairwoman Janet Yellen’s semi-annual testimony to Congress for clues on the path for higher interest rates.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, slipped 0.1% to 87.90.
- The U.S. dollar rose against the Japanese yen but fell against the Norwegian krone and Australian dollar.
- During her semi-annual testimony to Congress, Ms. Yellen reiterated her view that a tight labor market will put upward pressure on wages and prices, allowing the central bank to stick to its plans for gradual interest-rate increases.
- Some of Ms. Yellen’s other comments were perceived by investors as cautious, including her statement that rates “would not have to rise all that much further to get to a neutral policy stance.”
- Investors have been watching Ms. Yellen’s testimony for insight into how the central bank is thinking about a recent softening in inflation.
- The Fed raises rates at its meeting last month and stuck to its projection for one more rate increase this year despite the slowdown in consumer prices.
- The Australian dollar is still rising strongly and as reached a four-month high against its US counterpart which remains unchanged ahead of key US jobs figures.
- At 7.00 AEST on Friday, the Australian dollar was worth 77.32 US cents, up from 77.11 US cents on Thursday.
- European shares inched higher on Thursday, with investors less keen to chase the previous session’s strong rally that came on the back of the relatively dovish tone struck by Fed chair Janet Yellen overnight.
- The pan-European STOXX 600 was up 0.3 per cent at its close while blue-chips gained 0.4 per cent, with rate-sensitive real estate stocks, which were top gainers on Wednesday, tracking more modest gains.
- On Wednesday, the European benchmark posted its best day since Emmanuel Macron’s victory in the first round of French presidential elections, as banks and yield plays rallied – Yellen’s speech being a catalyst for that.
- Germany’s DAX lifted 0.1 per cent to 12,641.33.
- British shares underperformed, with AstraZeneca weighing on the healthcare sector and BP and Royal Dutch Shell tracking crude prices lower.
- Investors shunned AstraZeneca shares, which slid 3.4 per cent to the bottom of the FTSE after a media report said Chief Executive Pascal Soriot could be preparing to defect to Israel-based Teva Pharmaceutical Industries. The company declined to deny the report.
- Retailers and BT made gains but the FTSE 100 ended the session 0.05 per cent lower at 7,413.44 points.
Asian shares up more than 1 per cent with sentiment getting another boost from China’s upbeat data on exports and imports for June, the latest sign that global trade is finding some real traction again.
Japan’s Nikkei 225, however, closed flat, up just 0.01 per cent at 20,099.81.
Hong Kong stocks rose for the fourth straight day to a fresh 2-year high, as investors responded positively to China’s solid trade data and Federal Reserve Chair Janet Yellen’s signal to adopt a patient approach in the current US rate-tightening phase.
The Hang Seng index jumped 1.2 per cent, to 26,346.17, while the China Enterprises Index gained 1.5 per cent, to 10,677.44 points.
China posted better-than-expected trade data for June, with exports rising 11.3 per cent and imports expanding 17.2 per cent, suggesting the economy is holding up well thanks to firmer global demand.
Chinese stocks firmed with the blue-chip index closing at an 18-month high, underpinned by the solid trade data and Federal Reserve Chair Janet Yellen’s rates stance.
The blue-chip CSI300 index rose 0.8 per cent, to 3,686.92 points, while the Shanghai Composite Index gained 0.6 per cent to 3,218.16 points.
The S&P/NZX50 Index rose 0.3 per cent to 7610.89
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