Thursday: 20th July 2017
Each Market In Focus
The Australian share market looks set to open higher, with investors expected to take the lead from Wall Street where the major indices closed at record highs.
At 8.00 AEST on Thursday, the share price futures index was up 30 points, or 0.53 per cent, to 5,695 points.
In local economic news, June employment data will be released by the Australian Bureau of Statistics at 1130 AEST, with employment numbers expected to increase by 15,000.
In equities news, Woodside Petroleum, Santos, South32 and Evolution Mining will detail their June quarter production reports.
On Wednesday, big gains by the major banks after the release of softer-than-expected new capital requirements drove the share market higher.
The benchmark S&P/ASX200 was up 44.7 points, or 0.79 per cent, at 5,732.1 points.
The broader All Ordinaries index was up 41.3 points, or 0.72 per cent, at 5,779.4 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)
Scans Powered by Metastock. Click here for more information
The S&P 500, Dow industrials and Nasdaq marked record closing highs in the United States, tracking strong performances by major European stock indexes as the tech sector gave a boost in both regions.
The S&P 500 technology sector recorded its first closing record high since March 2000, which was at the height of the tech bubble.
Morgan Stanley shares climbed 3.3 percent after the bank’s profit report.
The Dow Jones Industrial Average rose 66.02 points, or 0.31 per cent, to 21,640.75,
The S&P 500 gained 13.22 points, or 0.54 per cent, to 2,473.83
The Nasdaq Composite added 40.74 points, or 0.64 per cent, to 6,385.04.
Gold prices finished a few cents higher on Wednesday, extending their streak of gains to a fourth session by a hair, as the U.S. dollar failed to rebound much from 10-month lows as prospects for more U.S. interest-rate hikes this year weaken.
August gold edged up by a dime to settle at $1,242 an ounce, after trading between $1,235.10 and $1,243.50.
Copper for September delivery settled down 0.8% at $2.7105.
- IRON ORE: $68.31 +0.92 ( August contract )
- Oil prices climbed to a six-week high Wednesday after a U.S. government report showed sharp drawdowns in oil and fuel stockpiles.
- Both U.S. and global crude benchmarks had their biggest single day gains since July 3 and settled at their highest level since June 6.
- U.S. crude futures settled up 72 cents, or 1.55%, at $47.12 a barrel on the New York Mercantile Exchange.
- Brent, the global benchmark, gained 86 cents, or 1.76%, to $49.70.
The declines in oil and fuel inventories helped bolster confidence that production cuts by the Organization of the Petroleum Exporting Countries and other major producers are having an impact on bloated U.S. stockpiles. U.S. oil inventories have now dropped in 13 of the last 15 weeks.
- The U.S. dollar edged higher Wednesday, as investors awaited central bank decisions in Europe and Japan later this week.
- The ICE Dollar Index, which measures the U.S. currency against a basket of 6 others, was recently up 0.2% at 94.81.
- European Central Bank President Mario Draghi will likely reinforce previous signals of a reduction in the ECB’s bond buying program when the central bank concludes its monetary policy meeting Thursday.
- Expectations of tighter monetary policy and eventually, higher rates, make the euro more attractive to yield-seeking investors.
- The euro is up around 2.5% against the dollar since the beginning of June. It recently traded down 0.3% at $1.1512.
- The Bank of Japan’s meeting also concludes Thursday. Most analysts expect the central bank to leave rates unchanged and cut forecasts for inflation.
- The U.S. dollar was recently down 0.2% at Yen111.81.
The Australian dollar has continued to make gains, helped by a recovery in iron ore and oil prices and as traders stay bullish ahead of employment data later on Thursday.
At 7.00 AEST on Thursday, the local currency was worth 79.54 US cents, from 79.22 US cents on Wednesday.
- A slew of upbeat updates from European firms helped the region’s benchmark index rise on Wednesday and recoup the previous session’s sharp losses, with tech stocks enjoying their best day in 10 months and all sectors making gains.
- The pan-European STOXX 600 index rose 0.7 per cent while blue chips climbed 0.6 per cent.
- Tech stocks rose 2.2 per cent in their best daily performance since September last year, as chipmakers ASM and STMicro followed ASML higher.
- Europe’s tech sector has gained more than 14 per cent so far this year, but worries over stretched valuations, especially among U.S. peers, have put the brakes on that rally.
- Overall earnings in the second quarter are expected to grow by 7.9 per cent from the same period last year, which would be an increase of 5.6 per cent excluding the energy sector, according to Thomson Reuters I/B/E/S estimates.
- British shares also climbed on Wednesday, helped by a buoyant consumer goods sector after Reckitt Benckiser sold its food business, while housebuilders added to gains.
- The FTSE 100 gained 0.6 per cent, with household goods boosting the index, while miners were a weak spot.
- While European stocks rebounded modestly, there were bigger gains in Asia and emerging markets.
- Those gains come on the back of data this week which showed China’s economy expanding at a faster-than-expected 6.9 per cent clip in the second quarter, setting the country on course to comfortably meet its 2017 growth target.
- MSCI’s index of Asia-Pacific shares outside Japan and its index of emerging market shares were both up 0.5 per cent at their highest since April 2015.
- China’s major share indexes rebounded on Wednesday as investors piled into blue chips after robust economic growth data and on expectations that Beijing is stepping up efforts to reform lumbering and inefficient state companies.
- Shanghai’s blue-chip CSI300 index rose 1 per cent and back toward an 18-month peak, while Australia’s main index added 0.9 per cent.
- The strength of the yen limited Japan’s Nikkei to a rise of 0.1 per cent.
- The S&P/NZX50 Index rose 18.44 points, or 0.2 per cent, to 7725.77. Within the index, 32 stocks rose, 11 fell and seven were unchanged. Turnover was $151 million.
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