Friday: 9th June 2017
Each Market In Focus
- The Australian market looks set to open flat, echoing Wall Street’s movements after ex-FBI chief James Comey says US President Donald Trump fired him to undermine an investigation into Russia’s meddling in the US election.
- At 7.00 a.m. AEST on Friday, the share price futures index was up five points, or 0.09 per cent, at 5,680.
- Locally, in economic news on Friday, the Australian Bureau of Statistics is due to release April’s housing finance figures.
- No major equities news is expected.
- The Australian market on Thursday closed slightly higher as strength in bank and healthcare stocks offset falls by energy companies, as investors wait on key political events overseas..
- The benchmark S&P/ASX200 index rose 9.4 points, or 0.17 per cent, to 5,676.6 points at the close.
- The broader All Ordinaries index gained seven points, or 0.12 per cent, to 5,714.8 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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- The ‘Trump trade’ has made a comeback on Wall Street but the S&P and Dow industrials ended flat as former FBI director James Comey said President Donald Trump fired him to undermine an investigation into Russian meddling into last November’s US election.
- The Nasdaq Composite posted a record closing high boosted by gains in Nvidia and Yahoo.
- Traders had been on tenterhooks ahead of Comey’s testimony to a Senate committee, his first since being fired by Trump on May 9.
- His prepared remarks had been made public Wednesday.
- The market’s concern on the issue is whether the Trump administration can put the investigation behind it and revive momentum for their agenda of lower taxes and looser regulations. Bets on that agenda are partly behind a rally that has taken stock indexes to record highs.
- The Trump ‘reflation trade’ that favoured banks and sectors linked to infrastructure spending, among others, was back on Thursday, with the S&P 500 financial sector up 1.1 per cent.
- In his statement, Comey said the president lied in describing their encounters and that he had no doubt that Russia interfered with the election, but was confident that no votes had been altered.
- The Dow Jones Industrial Average rose 0.04 per cent to 21,182.53, the S&P 500 gained 0.03 per cent to 2,433.79 and the Nasdaq Composite added 0.39 per cent to 6,321.76.
- Gold for August delivery fell 1.1% to $1,279.50 a troy ounce in New York.
- Copper prices rallied after severe weather hit some mines in South America and labor issues recurred in Indonesia. Copper for July delivery settled up 2.3% at $2.6095 a pound on the Comex division of the New York Mercantile Exchange, its highest close since May 2.
- IRON ORE: $53.99 -0.54( July contract )
- Oil prices edged lower, near lows going back to last year with traders still fearing the implications of an unexpected addition to U.S. crude inventories from last week.
- The lurch lower is the latest in a season full of them for oil. Only weeks ago analysts and traders broadly expected a steady march higher toward $60 a barrel because of output cuts from the world’s biggest exporters.
- But U.S. inventories have barely responded to that, holding near to record highs and spreading a fear that even $50 may be too high a price for crude.
- The losses added just slightly to Wednesday’s, which were the steepest in three months.
- U.S. government data Wednesday showed stockpiles unexpectedly growing again after a long stretch of drawdowns. The market did briefly rebound – likely from bearish traders closing out profitable bets -but its swift retreat again may demonstrate bloated stockpiles are still the dominant factor waylaying the rally many expected.
- Light, sweet crude for July settled down 8 cents, or 0.2%, at $45.64 a barrel on the New York Mercantile Exchange.
- Brent lost 20 cents, or 0.4%, to $47.86 a barrel on ICE Futures Europe.
- The U.S. dollar rose as investors brushed off important events including testimony from former FBI director James Comey, a European Central Bank meeting and the U.K. general election.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, edged up 0.1% to 88.22. The euro fell 0.3% after the European Central Bank’s latest meeting, while the pound slipped 0.1% as investors awaited the results of the U.K. election.
- Mr. Comey, who was fired in May, testified Thursday before a Senate panel that he believed President Donald Trump was trying to pressure him to drop an investigation into a White House adviser.
- The Australian dollar is treading water against its US counterpart ahead of key housing finance data and as the greenback firms slightly.
- At 7.00 a.m. AEST on Friday, the Australian dollar was worth 75.47 US cents, down fractionally from 75.50 US cents on Thursday.
- European stocks were little changed on Thursday as investors digested testimony from former FBI Director James Comey before a Senate panel, while the euro fell after the European Central Bank kept interest rates on hold and oil prices briefly touched one-month lows.
- Comey told US lawmakers he had no doubt that Russia had interfered with the election but was confident that no votes had been altered.
- Investors also await the outcome of the general election in Britain as voting began on Thursday in a snap vote predicted to give Prime Minister Theresa May a larger parliamentary majority.
- The FTSEurofirst 300 of top European equities briefly hit a three-week low of 1,526.29 after the ECB said subdued inflation meant it would continue to pump more stimulus into the region’s economy.
- It still judged the eurozone economy to be rebounding and signalled it would not cut interest rates further.
- Germany’s DAX lost 0.38 per cent to close at 12,713.58.
- The major FTSE 100 benchmark slid steadily throughout the session to close 0.4 per cent lower at 7,449.98 points.
- Asian shares wobbled as investors braced for any surprises from the UK elections, the European Central Bank’s policy meeting and congressional testimony from ex-FBI director James Comey who was fired by President Donald Trump last month.
- MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1 per cent while Japan’s Nikkei 22 lost 0.38 per cent to 19,909.26.
- Hong Kong’s benchmark Hang Seng Index climbed to another 23-month closing high, as China’s solid May trade data somewhat offset investor caution ahead of a slew of key global events.
- The Hang Seng index rose 0.32 per cent, to 26,063.06, while the China Enterprises Index gained 0.4 per cent, to 10,649.90 points.
- China stocks extended gains, with the blue-chip CSI300 index settling at a fresh six-month high, buoyed by stronger-than-expected foreign exchange and trade data.
- Chinese markets were also supported by signs of improved liquidity in the financial system and growing expectations that index publisher MSCI will decide to include Chinese
- A shares in its benchmark on June 20.
- The blue-chip CSI300 index rose 0.77 per cent to 3,560.98 points, while the Shanghai Composite Index added 0.34 per cent to 3,150.33.
- Data on Wednesday showed China’s foreign exchange reserves rose more than expected in May to a seven-month high as tougher capital restrictions and a weak dollar reduced pressure from capital outflows.
- The S&P/NZX50 Index fell 0.1 per cent to 7458.66.
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