Friday: 21st July 2017
Each Market In Focus
- The Australian share market looks set to open lower, with investors expected to mimic Wall Street’s lead where stocks ended little changed.
- At 7.00 AEST on Friday, the share price futures index was down 11 points, or 0.19 per cent, to 5,688 points.
- The local market on Thursday was trading in the green with strong gains by the major banks and a rally by energy stocks, pushing the share market higher.
- The benchmark S&P/ASX 200 index rose 0.5 per cent to 5,761.5 points, as the financial sector closed 2.4 per cent higher.
- In local economic news on Friday, two Reserve Bank of Australia policy makers, deputy governor Guy Debelle and assistant governor Michele Bullock, are scheduled to speak.
- Mr Debelle is expected to be questioned about the Australian dollar’s surge and the market’s reaction to the RBA minutes.
- On Thursday, the Aussie dollar spiked on the back of the news the Australian economy added 14,000 jobs in June, with full-time employment up by 62,000 – the second strongest one month increase in full time work since June 2011.
- The local currency has held on to its gains on Friday, supported by broad US dollar weakness and a partial recovery in Australia’s key commodity prices following steep declines in April and May.
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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- Stocks ended little changed on Wall Street as a deal between Sears and Amazon weighed on home improvement retailers while gains in Microsoft helped buoy the Nasdaq.
- The Dow Jones Industrial Average fell 28.97 points, or 0.13 per cent, to close at 21,611.78
- The S&P 500 lost 0.38 point, or 0.02 per cent, to 2473.45
- The Nasdaq Composite added 4.96 points, or 0.08 per cent, to 6390.00.
- Retailers and appliance makers fell on Thursday after Sears said it would sell its Kenmore home appliances on Amazon and integrate the brand’s smart gadgets with the online giant’s Alexa digital assistant.
- Sears was up 10.6 per cent at $US9.60 and Amazon shares rose 0.2 per cent.
- Home Depot fell 4.1 per cent, shaving off 40 points from the Dow and weighing the most on the S&P 500. Retailers Lowes and Best Buy, as well as appliance maker Whirlpool, were down between 3.9 and 5.6 per cent.
- Microsoft shares rose 0.9 per cent in after-hours trading to $US 74.89 after it reported a quarterly profit that more than doubled, helped by a tax benefit and strong growth in its cloud business.
- Gold prices turned higher as comments from the European Central Bank’s president lifted the euro, pummeling the U.S. dollar.
- The ECB, as expected, left interest rate policy and other stimulative measures untouched.
- But the euro jumped after ECB head Mario Draghi pledged to continue the central bank’s asset-purchasing plan through at least December.
- August gold rose $3.60, or 0.3%, to $1,245.60 an ounce after tapping a low of $1,234.60.
- The contract settled Wednesday at $1,242, its highest finish since June 30.
- IRON ORE: $66.59 -1.72 ( August contract )
- Crude prices retreated after hitting a seven-week high.
The market bounced lower after plateauing just above an intraday high dating back to June 7, which some momentum-focused traders read as a sign a rally is slowing, at least temporarily.
U.S. oil had gained in 16 of 19 sessions through Wednesday – a period that included its longest winning streak in seven years.
Light, sweet crude for August delivery settled down 33 cents, or 0.7%, at $46.79 a barrel on the New York Mercantile Exchange.
It peaked at $47.55 a barrel, and then retreated.
The August contract expires at settlement, and the more actively traded September contract settled down 40 cents, or 0.9%, to $46.92 a barrel.
Brent crude, the global benchmark, lost 40 cents, or 0.8%, to $49.30 a barrel on ICE Futures Europe.
- The euro jumped against the dollar to its highest level in nearly two years intraday after European Central Bank President Mario Draghi said the ECB will discuss when to trim its massive bond purchases in the fall.
- But bond markets remained broadly calm, as Mr. Draghi’s tentative language failed to spark the kind of volatility that followed his comments last month in which he hinted at winding down its massive stimulus program.
- The euro traded at $1.1638 late in the European afternoon, up 1.1% on the day against the dollar and its highest intraday trading level since August 2015. Meanwhile, 10-year German bond yields were little changed at around 0.54% and riskier eurozone debt rallied, as financial markets showed signs of mixed reactions to the ECB’s messaging.
- That contrasts to the concurrent rises in bond yields and the euro that followed Mr. Draghi’s comments in late June on the improving outlook in the euro area that investors took as the first clues the ECB is moving closer to ending its easy-money policies.
- Yields rise as prices fall.
- The ECB’s policies of ultralow interest rates and mass asset purchases have helped pin down the euro and bond yields in recent years.
- The Australian dollar has held on to gains after it received a boost from the latest employment numbers which showed another rise in full-time employment.
- At 7.00 AEST on Friday the local currency was worth 79.58 US cents, from 79.23 US cents on Thursday.
- The euro strengthened to its highest level in nearly two years against the US dollar after Europe’s central bank chief said officials would discuss possible changes to its bond-buying scheme this autumn, while a gauge of stocks globally gained for a 10th straight session.
- Though European Central Bank President Mario Draghi set no date for changes to the bond-buying plan and said that officials were unanimous in their decision not to change their guidance on monetary policy, investors suspected the talks would lead to tightening next year.
- The euro was up 0.96 per cent to $1.1625, and poised for its biggest single-day percentage gain in more than three weeks.
- Britain’s FTSE 100 index advanced 0.8 per cent while the DAX in Germany was little changed.
- Hong Kong stocks finished higher for a ninth straight session, its longest winning streak since April 2015, as technology stocks powered through.
- Speakers maker AAC Technologies, which supplies to Apple, rose 6.1 per cent to an all-time high, in line with tech stocks in the United States which broke dot-com era records on Wednesday.
- Much larger sector peer, Tencent Holdings, also finished at a record high after a brief slowdown around mid-day.
- The Chinese gaming and social media firm has added about 11 per cent so far since July 7 when it announced it would launch its mega-hit smartphone game in Europe and the United States this year.
- The benchmark Hang Seng index ended up 0.3 per cent, or 68.05 points at 26,740.21, its highest level since June, 2015.
- Meanwhile, strong trade data and expectations for continued lavish monetary stimulus from Japan’s central bank pushed Tokyo’s Nikkei 225 index up 0.6 percent.
- New Zealand shares fell, dragged lower by Fletcher Building hitting a six-week low, as the company’s board advised a second large earnings downgrade this year and the departure of its chief executive, Mark Adamson.
- The S&P/NZX50 Index dropped 60.31 points, or 0.8 per cent, to 7672.44.
- Within the index, 29 stocks fell, 11 rose and 10 were unchanged.
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