Friday: 7th April 2017
Each Market In Focus
- The Australian market looks set to open higher, following relatively small gains on Wall Street, as the leaders of the world’s two biggest economies meet in the US
- At 8.00 a.m. AEST on Friday, the share price futures index was up 16 points, or 0.27 per cent, at 5,864.
- Locally, no major economic news is expected on Friday.
- In equities news, Westfield Corporation holds its annual general meeting in Sydney, while Qantas launches its inflight Wi-Fi service.
- The Australian market on Thursday closed lower due to falls by the major banks, energy producers and miners.
- The benchmark S&P/ASX200 index lost 19.9 points, or 0.34 per cent, to 5,856.3 points.
- The broader All Ordinaries index dropped 18.6 points, or 0.31 per cent, to 5,897.3 points..
- Wall Street’s major indexes have closed slightly higher but well off session highs with investors nervous about upcoming talks between China’s President Xi Jinping and US President Donald Trump.
- The leaders of the world’s two biggest economies are to greet each other at the president’s Mar-a-Lago retreat in Palm Beach, Florida, later on Thursday.
- Investors are anxious for news on China-US trade relations and discussions on reining in North Korea’s arms program, according to market participants.
- The Dow Jones Industrial Average closed up 0.07 per cent at 20,662.95
- The S&P 500 gained 0.19 per cent to 2,357.49 after reaching a session high of 2364.16 earlier in the day
- The Nasdaq lifted 0.25 per cent to 5,878.95.
- Gold prices rose, a day after minutes from the Federal Reserve’s monetary policy meeting suggested the central bank was in no hurry to raise rates at a faster pace this year.
- Gold for June delivery closed up 0.4% at $1,253.30 a troy ounce on the Comex division of the New York Mercantile Exchange.
- IRON ORE: $78.92 -0.52 ( April contract )
- Oil prices rose to a one-month high after U.S. data gave hope that the country’s building crude stocks would soon reverse direction and begin falling.
Light, sweet crude for May settled up 55 cents, or 1.1%, at $51.70 a barrel on the New York Mercantile Exchange, its seventh gain in six eight.
Brent crude, the global benchmark, gained 53, or 1%, to $54.89 a barrel on ICE Futures Europe.
Both reached their highest settlement since March 7.
- The U.S. dollar rose as investors watched a summit between U.S. President Donald Trump and China’s President Xi Jinping.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, was up 0.1% to 90.58.
- The Australian dollar is fractionally lower against its US counterpart as its downward trajectory continues.
- At 7.00 a.m. AEST on Friday, the Australian dollar was worth 75.44 US cents, down slightly from 75.48 US cents on Thursday.
- British shares dropped on Thursday after minutes of the Federal Reserve’s last meeting indicated the central bank would shrink its balance sheet later in 2017.
- The FTSE 100 was down 0.39 per cent at 7,303.20 points at its close, with financials the biggest drag, taking almost 11 points off the index. US equities had dipped on Wednesday .
- The FTSE 100 was also under pressure from a firmer sterling, as a large number of FTSE constituents are US dollar-earning firms.
- Key stock indexes in Europe climbed but a gauge of global equities was little changed, with gains offset by a decline in emerging markets.
- The pan-European FTSEurofirst 300 index closed up 0.20 per cent to a provisional 1,500.65, while MSCI’s gauge of stocks across the globe fell 0.01 per cent.
- Germany’s DAX rose 0.11 per cent to 12,230.89.
Asia stocks fell with risk appetite soured by signs the Federal Reserve might start paring its king-sized balance sheet later this year just as the chances of an early US fiscal stimulus faded further.
Investors were also wary ahead of a potentially tense meeting between President Trump and his Chinese counterpart Xi Jinping.
Lingering fears of a possible trade war kept Asian markets on edge. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.2 per cent, while Tokyo’s Nikkei fell 1.4 per cent to 18,597.06.
Investor nervousness also hit Hong Kong stocks, with the benchmark Hang Seng index dropping 0.52 per cent to 24,273.72, while the Hong Kong China Enterprises Index lost 0.9 per cent to 10,276.41 points.
Analysts say risk appetites shrank on news that most Fed policymakers think the central bank should take steps to begin trimming its king-sized balance sheet later this year as long as US economic data holds up.
In China, the blue-chip CSI300 index rose 0.29 per cent to 3,514.05 points, while the Shanghai Composite Index gained 0.33 per cent to 3,281.01 points.
The S&P/NZX 50 index increased 24 points, or 0.4 per cent, to 7289.53.
Important News Events For Today
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