Friday: 7th December 2017
Each Market In Focus
- The Australian market looks set to open lower after Wall Street fell private sector jobs figures disappointed and unemployment claims rose.
- At 7.00 AEST on Friday, the share price futures index was down 23 points, or 0.4 per cent, at 5,676.
- In the US, private sector payrolls lifted by 150,000 in June, less than the 230,000 positions created in May and less than the 185,000-188,000 the markets had expected.
- In a separate report, the US Labour Department said initial claims for state unemployment benefits increased 4,000 to a seasonally-adjusted 248,000 for the week ended July 1 – the third straight weekly increase in claims.
- Locally, in economic news on Friday, the Australian Bureau of Statistics is due to release the value of agricultural commodities produced data while the Ai Group’s performance of construction (PCI) index for June is due out.
- No major equities is expected.
- The Australian market on Thursday closed slightly weaker as gains by healthcare companies and several miners were outweighed by falls in the energy and banking sectors..
- The benchmark S&P/ASX200 index lost 4.5 points, or 0.08 per cent, to 5,758.8 points.
- The broader All Ordinaries index fell 3.5 points, or 0.06 per cent, to 5,797.5 points.
- Meanwhile, the Australian dollar has fallen against is US counterpart, which itself has fallen 0.5 per cent on the US jobs and unemployment data.
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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- US stocks have closed sharply lower after disappointing labour market data clashed with the possibility of a more hawkish Federal Reserve, while rising tensions in the Korean peninsula provided additional pressure.
- Private employers added 158,000 jobs in June, the ADP National Employment Report showed, coming in below the estimated gain of 185,000 and suggesting cooling in the US labour market as it nears full employment.
- Another set of data showed weekly jobless claims rose for the third straight week, climbing to 248,000 and topping the 243,000 expected.
- While the data still indicates a tight labour market, the reports hint at a soft monthly non-farm payrolls report on Friday, which includes hiring in both the public and private sectors.
- The softer data comes on the heels of Wednesday’s release of the minutes from the Federal Reserve’s June meeting, which showed policy makers were increasingly split on the inflation outlook and how it might affect the pace of interest rate increases.
- The Dow Jones Industrial Average fell 0.74 per cent to 21,320.04
- The S&P 500 lost 0.94 per cent to 2,409.75
- The Nasdaq Composite dropped 1 per cent to 6,089.46.
- Gold prices climbed for a second-straight session , finding support from a retreat in the U.S. dollar and weakness in equities. August gold rose $1.60, or 0.1%, to settle at $1,223.30 an ounce.
- Prices had climbed 0.2% Wednesday, recouping part of a three-session decline that brought prices to their lowest level since May on Monday, before the Independence Day holiday.
- IRON ORE: $62.11 -0.92 ( July contract )
Oil prices rebounded slightly after data showing a drop in U.S. stockpiles reignited a two-week-long rally.
Light, sweet crude for August settled up 39 cents, or 0.9%, at $45.52 a barrel on the New York Mercantile Exchange. Brent gained 32 cents, or 0.7%, to $48.11 a barrel on ICE Futures Europe.
Both are up nine sessions in the past 11.
The gains canceled out some the big losses from Wednesday’s session. But gains had been much larger early in the day only to retreat almost all the way back to unchanged in the last 90 minutes before settlement.
- The U.S. dollar weakened Thursday as investors watched U.S. employment data and geopolitical events.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, slipped 0.2%.
- Investors are paying close attention to U.S. as they assess the outlook for additional U.S. interest-rate increases.
- Minutes from the Federal Reserve’s June meeting, released Wednesday, showed some officials were divided on plans to start slowly shrinking the central bank’s balance sheet and a recent slowdown in inflation.
- The Fed raised rates at the June meeting and stuck by its projection for one more rate increase in 2017. But some investors remain skeptical amid the recent weakness in inflation.
- Markets are pricing in a roughly 60% chance that the Fed sticks to its projection for at least one more rate increase in 2017, according to fed-funds futures contracts tracked by CME Group.
The Australian dollar is down against its US counterpart, back below 76 US cents even though the greenback has also fallen after a round of weaker-than-expected US employment data.
At 7.00 AEST on Friday, the Australian dollar was worth 75.84 US cents, down from 76.00 US cents on Thursday.
- Britain’s top share index fell on Thursday as Reckitt Benckiser helped lead rate-sensitive consumer stocks lower, though a results-driven jump in AB Foods and gains among banks offered some support.
- Britain’s blue-chip FTSE 100 index closed down 0.41 per cent at 7,337.28 points among health and consumer staples shares fell. Both sectors are sensitive to interest rates changes.
- More hawkish central bank comments and the minutes from the European Central Bank’s latest policy meeting support the view that the ECB is open to a further step towards reducing stimulus.
- European shares fell to their lowest in 11 weeks after minutes from the ECB’S latest meeting showed the central bank had left the door open to scrapping its bond-buying pledge.
- The pan-European STOXX 600 ended the session 0.7 per cent lower, recovering some of its losses with all but three sectors closing in negative territory. Eurozone blue chips also hit an 11-week low.
- Germany’s DAX lost 0.58 per cent to 12,381.25.
- Most Asian stock markets fell on Thursday after minutes from the Federal Reserve’s last meeting showed a lack of consensus on the future pace of US interest rate increases, while oil prices inched higher following a steep decline a day earlier.
- MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1 per cent.
- Japan’s Nikkei slipped 0.44 per cent at 19,994.06 as a stronger yen depressed the outlook for export earnings.
- Hong Kong stocks followed most Asian markets lower, after the Fed’s minutes.
- The Hang Seng index fell 0.22 per cent, to 25,465.22, while the China Enterprises Index lost 0.3 per cent, to 10,346.32 points.
- China stocks inched up, helped by strong gains in resource firms on expectations of robust mid-year earnings.
- The blue-chip CSI300 index was unchanged at 3,660.10, while the Shanghai Composite Index added 0.22 per cent to 3,212.44 points.
- The S&P/NZX50 Index gained 0.4 per cent to 762961.
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