Thursday: 12th October 2017
Each Market In Focus
The Australian share market is expected to open flat, ignoring leads from the US where major stock indexes edged up to post record closing highs.
At 8.00 AEDT on Thursday, the share price futures index was down two points, or 0.03 per cent, at 5,743.
Locally in economic news on Thursday, the Australian Bureau of Statistics is due to release housing finance figures for the month of August.
In equities, Whitehaven Coal is due to release its quarterly production report while Transurban Group will host its annual general meeting in Melbourne and report on quarterly traffic and revenue.
The Bank of Queensland is expected to release its full-year results.
The Australian share market gained ground on Wednesday, due to a positive lead from overseas markets, an upgrade of the International Monetary Fund’s global economic growth forecasts, and stronger prices for copper and oil.
The benchmark S&P/ASX200 index rose 0.6 per cent to 5,772.1 points, the first time it has broken through the technical hurdle of 5,750 points in almost two months.
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)
Scans Powered by Metastock. Click here for more information
Wall Street’s main indexes are little changed at the open, as a jump in shares of consumer staples were offset by a drop in financials on the eve of their financial reports.
Kroger rose nearly seven per cent after the grocery chain said it would explore a potential sale of its convenience stores business.
That led the consumer staples index up 0.36 per cent on Wednesday. But those gains were offset by a 0.5 per cent drop in financials.
Wall Street banks JPMorgan Chase and Citigroup both report on Thursday. But, analysts warn bank results will be held back by a lack of volatility compared with a year ago.
With the S&P 500 up 14 per cent in 2017, investors are betting on strong earnings growth across the S&P 500.
The Dow Jones Industrial Average was up 4.04 points, or 0.02 per cent, at 22,834.72
The S&P 500 was down 0.73 points, or 0.03 per cent, at 2,549.91.
The Nasdaq Composite was down 4.12 points, or 0.06 per cent, at 6,583.13.
Seven of the 11 major S&P indexes were higher.
General Electric slipped about 1 per cent after JPMorgan said a dividend cut was “increasingly likely” and cut its price target on the stock.
Micron Technology dipped 1.17 per cent after launching a $1 billion stock offering to cut debt.
The US dollar dipped to a 12-day low on worries that a feud with influential Tennessee senator Bob Corker would undermine US President Donald Trump’s efforts to pass tax changes.
- Gold for December delivery was recently down 0.1% at $1,292.30 a troy ounce in electronic trading. Prices closed at $1,288.90 a troy ounce in regular trading on the Comex division of the New York Mercantile Exchange.
- Several officials said their decision on another rate move this year would depend on whether the economic data in coming months showed that inflation was set to move higher.
- Others worried that holding off on raising interest rates too long could lead to a surge in inflation that would be difficult to control.
- Expectations for a more hawkish Fed have pressured gold prices over the last several weeks, as the metal struggles to compete with yield-bearing investments when rates rise.
In base metals, copper for December delivery was up 1.1% at $3.0955 a pound.
- IRON ORE: $57.41 -1.20 ( November contract )
- Oil prices logged a third straight session gain, as OPEC raised its forecast for crude demand but said output by member countries rose in September despite a deal to limit production.
- November West Texas Intermediate crude rose 38 cents, or 0.8%, to settle at $51.30 a barrel on the New York Mercantile Exchange.
- Brent crude, the global benchmark, for December delivery on ICE Futures Europe exchange climbed by 33 cents, or 0.6%, to $56.94 a barrel.
- In its monthly report, the Organization of the Petroleum Exporting Countries said crude-oil production last month jumped by 90,000 barrels a day, complicating efforts by the cartel and other major producers to limit output and curb the global supply glut.
- OPEC also noted an increase of 31,000 barrels a day in output by non-OPEC countries in September, driven partly by a rise in U.S. production.
- The cartel, however, raised its forecast for growth in global demand for oil by around 30,000 barrels a day for this year and 2018.
- It now sees demand increasing by 1.5 million barrels a day in 2017 and 1.4 million barrels a day next year.
- The declined Wednesday as investors looked ahead to inflation data Friday which may shed some light on whether the Federal Reserve will be able to achieve its interest-rate forecasts.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, declined 0.1% to 86.50 amid losses against the euro.
- The Fed has forecast it will increase rates by the end of the year, its third hike for 2017, followed by three more moves in 2018.
- The Fed has begun paring back on its $4.2 trillion bond portfolio amassed during the financial crisis to remove stimulus policy makers no longer deem necessary.
- Higher interest rates make a the dollar more attractive to yield-seeking investors.
- Consumer prices rose 1.9% in August from the previous year, climbing 1.7% when more volatile food and energy components are excluded. A loss of momentum could make it more difficult for the Fed to meet its forecast.
- Thursday morning, the Australian dollar was marginally higher against its US counterpart which slipped overnight following a small fall in US treasury yields due to dovish Fed speak from central banker Charles Evans who wondered whether more accommodation was needed to reach two per cent inflation.
- At 8.00 AEDT on Thursday, the Australian dollar was worth 77.87 US cents, up from 77.85 US cents on Wednesday.
- British shares ended the session slightly down on Wednesday after results from paper and packaging firm Mondi disappointed and sub-prime lender Provident Financial sank after a downgrade from Barclays.
- The FTSE 100 closed down 0.06 per cent at 7,533.81 points with financials and materials firms being the biggest drags on the index.
- The index is up 5.5 per cent year-to-date.
- Investors expect the leading share index to stall into the year-end, with economic and political worries and a stronger pound preventing further gains.
- Mondi was the main weak spot on the index, down 7.6 per cent after the paper and packaging manufacturer said full-year results would be “modestly below market expectations” due to cost pressures and negative currency moves.
- Among the mid-caps, embattled sub-prime lender Provident Financial fell 4.3 per cent after Barclays cut the stock to “underweight”.
- Another stressed midcap was British recruitment company PageGroup, which lost 9.2 per cent amid uncertainty over Brexit hitting the recruitment market.
- Some positive corporate news lifted a number of stocks such as homeware retailer Dunelm, which jumped 5.4 per cent after it reported first-quarter revenue rose nearly 25 per cent as better weather drew more customers. Medical devices company Smith & Nephew, was up 3.1 per cent after a report that activist investor Elliott built a stake in the company.
Hong Kong stocks fell, pressured by a sharp reversal in property shares after the city’s chief executive unveiled a mix of housing and tax relief policies that disappointed some investors.
The Hang Seng index fell 0.4 per cent to 28,389.57 points on Wednesday, while the China Enterprises Index lost 0.1 per cent, to 11,411.41 points.
In her maiden policy speech, Carrie Lam on Wednesday warned the city faced “grave” challenges and must develop a diversified and high value economy.
She pledged to increase land supply where possible and launch a new subsidised “starter homes” scheme to help families not eligible for cheap-rental public housing.
But property shares gave up initial gains, and closed the session down 1.8 per cent, as some observers felt Lam’s housing initiatives were not bold enough.
In particular, some investors had bet Lam would announce details of how she plans to free up more land in the tiny territory for development.
Materials shares also weighed, dropping 1.8 per cent.
New Zealand shares rose as the export-orientated growth stocks A2 Milk and Xero extended recent gains, while insurer CBL Corp declined.
The S&P/NZX 50 Index increased 23.17 points, or 0.3 per cent, to 8060.98, another record close on Wednesday.
Within the index, 21 stocks rose, 21 fell and eight were unchanged. Turnover was $194 million
Important News Events For Today
“It always seems impossible until it’s done”. – Nelson Mandela
*Now you know everything.*