Monday: 24th July 2017
Each Market In Focus
The Australian market looks set to open nearly half a per cent lower amid a sharp slump in commodity prices and following falls on international bourses.
At 7.00 AEST on Monday, the share price futures index was down 25 points, or 0.44 per cent, at 5,639.
Locally, in economic news, CommSec’s latest State of the States report, released early
Monday, says NSW has maintained its position as the best performing economy in the country thanks to relatively strong retail spending and residential construction.
Meanwhile, the CoreLogic capital city house prices for the week just ended is due out on Monday.
In equities, Newcrest Mining is expected to release a quarterly production report.
The Australian market on Friday closed lower as investors took profits and mining and energy stocks were weighed down by lower commodity prices.
The benchmark S&P/ASX 200 index fell 38.7 points, or 0.67 per cent, to 5,722.8 points.
The broader All Ordinaries index lost 34.5 points, or 0.59 per cent, to 5,771.2 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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US stocks have ticked lower as weak earnings from industrial giant General Electric weighed, while tech shares retreated from record highs and energy tracked the price of oil lower.
GE shares fell 2.9 per cent to $US25.91 and hit their lowest level since October 2015.
The company reported a nearly 60 per cent slump in profit and said its full-year profit and cash flow will be at the low end of its forecasts.
Peers in the industrial sector, such as Caterpillar and 3M, also fell.
But Honeywell touched a record high and ended up 1.0 per cent at $US 136.35 after it raised the low-end of its profit forecast.
The S&P 500 energy sector fell more than 1 per cent as oil prices lost nearly 3 per cent, after a consultancy report forecast a rise in OPEC production for July despite the cartel’s pledge to curb output.
The Dow Jones Industrial Average fell 0.15 per cent to 21,580.07, the S&P 500 lost 0.04 per cent to 2,472.54 and the Nasdaq Composite dropped 0.04 per cent to 6,387.75.
Gold prices rose for the sixth session in a row, as the dollar weakened and investors closed out bearish positions.
Gold for August delivery settled up 0.8% at $1,254.90 a troy ounce on the Comex division of the New York Mercantile Exchange.
The WSJ Dollar Index fell 0.3% at 86.48, making dollar-denominated metals like gold cheaper for foreign buyers.
Meanwhile, copper prices were buoyed by tightening global supply and the prospect of further labor disputes in South America.
Futures for September delivery rose 0.2% to $2.7225 a pound in New York.
- IRON ORE: $66.25 -0.34 ( August contract )
- Oil’s rally fell flat with a late-week selloff cancelling out early-week gains after new questions emerged about OPEC’s ability to hold to its promise of output cuts.
- Light, sweet crude for September delivery settled down $1.15, or 2.5%, at $45.77 a barrel on the New York Mercantile Exchange.
- Brent crude, the global benchmark, lost $1.24, or 2.5%, to $48.06 a barrel on ICE Futures Europe.
- Both had their seventh-lowest settlement of the year.
- Both also lost ground for the seventh time in the last nine weeks. U.S. oil fell 98 cents, or 2.1% a barrel this week. Brent lost 85 cents, or 1.7%.
- The U.S. dollar slipped Friday as investors continued to focus on U.S. political uncertainty.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, fell 0.3% to 86.50, its lowest closing level since September. For the week, the index slid 0.9%.
- The U.S. dollar was hit this week by fresh turmoil in Washington.
- On Thursday, Bloomberg reported that the investigation into ties between President Donald Trump’s campaign and Russia in last year’s election are extending to his businesses.
- Earlier in the week, the Republican failure to dismantle the Affordable Care Act, one of Mr. Trump’s top legislative priorities since taking office, also weighed on the U.S. currency.
- Investors fear the political uncertainty will derail the Trump administration’s pro-growth agenda. Hopes that the administration’s plans for fiscal stimulus and tax reform would accelerate U.S. growth helped drive the dollar to a 14-year-high after the November election. The U.S. dollar has now given back all of those gains.
- Questions over the Federal Reserve’s path for raising interest rates have also driven the dollar lower. The Fed holds its latest meeting next week and is widely expected to hold policy steady.
- The euro ticked up 0.3% to $1.1666, its highest New York closing level since January 2015.
- Expectations that the central bank is moving closer to reducing its bond-buying program have propelled the currency higher this year.
- The Australian dollar is lower against its US counterpart, which has continued to hold firm against major currencies.
- At 8.00 a.m. AEDT on Monday, the local unit was trading at 74.55 US cents, down from 74.65 cents on Friday.
- Britain’s major share index fell on Friday but had its strongest weekly gains in two months, sheltered from the battering European stocks experienced at the mercy of a strong euro, while mid-caps had their best week in nearly a year.
- Britain’s FTSE 100 index was down 0.5 per cent, to 7,452.91, substantially outperforming European bourses, having earlier hit its highest level since mid-June.
- The relative weakness of the pound, close to an eight-month low against the euro, helped limit losses on the index whose exporting constituents tend to gain with a falling currency.
- European shares sank as the euro strengthened but company earnings disappointed at the end of a turbulent week.
- The euro climbed to a two-year high, sending the exporter-heavy STOXX 600 down 1 per cent to a weekly decline of 1.7 per cent.
- Germany’s DAX fell 1.7 per cent to 12,240.06.
- In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan, which has gained about 5 per cent in the past two weeks, eased 0.2 per cent, dragged down by a fall in material and financial shares.
Japan’s Nikkei dropped 0.2 per cent to 20,099.75.
- Hong Kong stocks snapped a nine-day winning streak as investors took a breather after the benchmark index scaled a fresh two-year peak in the previous session.
- The Hang Seng index shed 0.1 per cent to 26,706.09, ending its longest streak of gains since April 2015. However, it rose 1.3 per cent this week, its second week in the black.
- The Hang Seng China Enterprises Index, which tracks the performance of China companies listed in Hong Kong, was 0.6 per cent lower at 10,787.13.
- China’s stocks fell but ended the week higher, with demand for blue chips gaining momentum amid a slump in small-cap stocks, as investors sought firms with solid growth prospects and lower valuations.
- The blue-chip CSI300 index fell 0.5 per cent to 3,728.60 points, while the Shanghai Composite Index lost 0.2 per cent to 3,237.98 points.
- For the week, the two indexes gained 0.7 per cent and 0.5 per cent, respectively, erasing losses earlier this week when investors dumped start-ups stocks.
- The S&P/NZX50 Index closed down 0.02 per cent at 7670.86.
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