Monday: 10th April 2017
Each Market In Focus
- The Australian share market is set to open higher.
- At 8.00 a.m. AEDT on Monday, the local share price index was up 14 points, or 0.24 per cent, at 5,866.
- Wall Street’s three major indexes have edged fractionally lower in a choppy session as investors grappled with a weaker-than-expected jobs report, the US airstrike in Syria and a top Federal Reserve official’s comments on
trimming the US central bank’s balance sheet.
- US employers added about 98,000 jobs in March, the fewest since last May and well below economists’ expectation of 180,000, as bad weather hit construction hiring.
- However, wage growth edged up and unemployment fell.
- New York Fed president William Dudley on Friday shed more light on the US central bank’s developing plan for when to stop replacing bonds that expire in its portfolio, how to execute it, and how far it would ultimately shrink its balance sheet.
- The Dow Jones Industrial Average lost 0.03 per cent to 20,656.1
- The S&P 500 fell 0.08 per cent to 2,355.54
- The Nasdaq Composite dropped 0.02 per cent, to 5,877.81.
- Gold prices retreated from a five-month high, weighed upon by a stronger dollar.
- IRON ORE: $76.91 -2.01(April contract )
- Crude prices hit one-month highs Friday as U.S. airstrikes in Syria raised concerns that conflict in the oil-producing region could spread.
Oil has been steadily rebounding from its 2017 lows in March. Both U.S. crude and Brent rose more than 3% this week, notching a second consecutive week of gains.
On Friday, U.S. crude futures settled up 54 cents, or 1.04%, at $52.24 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 35 cents, or 0.64, to $55.24 a barrel on ICE Futures Europe.
Both benchmarks settled at their highest level since March 7.
- The U.S. dollar rose, brushing off disappointing U.S. jobs data as investors focused on the Federal Reserve’s plans to tighten policy.
- The WSJ Dollar Index, measuring the U.S. currency against 16 others, rose 0.4% to 90.90 as the greenback rallied against the Japanese yen, euro and Russian ruble.
- Nonfarm payrolls rose by a seasonally adjusted 98,000 in March from the prior month, the Labor Department said Friday, a sharp slowdown from the prior two months and below expectations for 175,000 additions.
- The Australian dollar has fallen further against its US counterpart, dropping below the 75 US cent mark.
- At 7.00 AEST on Monday, the Australian dollar was worth 74.94 US cents, down from 75.24 US cents on Friday.
- European shares inched up on Friday, reversing earlier weakness as oil stocks climbed after a US cruise missile strike in Syria sent crude prices near to one-month highs.
- The pan-European STOXX 600 index ended up 0.1 per cent, also supported by precious metal miners which benefited from a rise in prices of gold, seen as a safe-haven asset.
- Oil stocks provided the biggest boost to the STOXX with their sectoral index surging to its highest level in 10 weeks with majors BP, Total, and Royal Dutch Shell all up around 1 per cent.
- European shares touched the day’s lows after disappointing US non-farm payrolls data.
- But traders said the figures had not changed expectations surrounding monetary policy in the world’s largest economy.
- Elsewhere price action was dictated by broker moves.
- London’s FTSE 100 lifted 0.63 per cent to close at 7,349.37
- Germany’s DAX slipped just into the negative, closing down 0.05 per cent at 12,225.06.
- Asian stocks were spooked by the US strike on Syria, but Tokyo and mainland China later reversed the negative trend.
- MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.4 per cent after earlier sliding as much as 0.85 per cent to a 2-1/2-week low.
- But Japan’s Nikkei reversed course to close up 0.36 per cent.
- Hong Kong stocks barely moved, with strength in energy stocks offset by the confidence-sapping news of the US firing cruise missiles at a Syrian air base. The benchmark Hang Seng index pared earlier losses and was flat, down just 0.03 per cent at 24,267.30.
- Sentiment in Hong Kong was already soft as investors awaited the outcome of US president Donald Trump’s talks with his Chinese counterpart Xi Jinping, expected to cover North Korea and China’s big trade surplus with the United States.
- China stocks rose, led by the Shanghai benchmark closing at a 15-month high, with risk appetite lifted by Beijing’s decision to launch a new economic zone in Hebei province.
- The blue-chip CSI300 index rose 0.1 per cent to 3,517.46 points, while the Shanghai Composite Index added 0.17 per cent to 3,286.62 points.
- The S&P/NZX 50 index fell 46 points, or 0.6 per cent, to 7,243.750.
Important News Events For Today
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