Thursday: 6th July 2017
Each Market In Focus
- The Australian market looks set to open higher despite a slump in oil prices and a mixed lead from Wall Street.
- At 7.00 AEST on Thursday, the share price futures index was up 21 points, or 0.37 per cent, at 5,726.
- Oil prices retreated about 4 per cent overnight, ending their longest bull-run in more than five years, as climbing OPEC exports and a stronger US dollar turned sentiment more bearish.
- Locally, in economic news on Thursday, the Australian Bureau of Statistics releases June’s international trade in goods and services data.
- No major equities news is expected.
- The Australian market on Wednesday closed lower despite a late rally as global concerns were felt across most sectors except the major miners.
- The benchmark S&P/ASX200 index fell 20.5 points, or 0.35 per cent, to 5,763.3 points
- The broader All Ordinaries index was down 18 points, or 0.32 per cent, to 5,801.0 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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- A steep drop in oil prices has dragged energy shares lower and kept the Dow and S&P 500 in check, while the Nasdaq was buoyed by gains in tech stocks.
- Crude prices settled about 4 per cent lower on Wednesday, ending their longest bull run in more than five years, hurt by a stronger US dollar and concerns about rising OPEC exports.
- Recent tepid economic data and an inflation rate below the Federal Reserve’s 2 per cent target may have a bearing on the US central bank’s plans for interest rate hikes.
- New orders for US-made goods fell more than expected in May, data showed, but capital equipment orders were slightly stronger than previously reported, suggesting manufacturing remains on a path of moderate growth.
- Fed policymakers were increasingly split on the outlook for inflation and how it will affect the future pace of rate increases, according to minutes of the Fed’s latest policy meeting on June 13-14.
- The Dow Jones Industrial Average fell 0.01 per cent to 21,478.17
- The S&P 500 gained 0.15 per cent to 2,432.54
- The Nasdaq Composite added 0.67 per cent to 6,150.86.
- Gold prices ended higher, getting a boost as downbeat U.S. economic data and North Korea’s ballistic-missile test drew investor interest to the precious metal.
- After gold settled for the session, prices briefly struggled for direction in electronic trading, before eventually easing back as investors weighed the release of minutes from the U.S. Federal Reserve’s June meeting.
- The metal managed to recoup some of the losses it suffered on Monday, when prices dropped 1.9%-the biggest single-session percentage decline of the year. August gold tacked on $2.50, or 0.2%, to settle at $1,221.70 an ounce for the session, after briefly trading as low as $1,216.50.
- In electronic trading after the release of the Fed minutes, prices traded above $1,223, then fell to lows under $1,220. It was at $1,219.90 about a half-hour following the release.
- September copper tumbled 3.3 cents, or 1.2%, to $2.66 a pound.
- China’s services sector grew at a slower pace in June as new orders slumped-pointing to a softening outlook for the economy of the world’s largest consumer of commodities, including copper.
- IRON ORE: $61.81 -1.88 ( August contract )
Oil prices settled with a loss of more than 4% Wednesday–their largest such decline in a month.
Prices pulled back on the heels of eight-straight sessions of gains on reports of a rise in monthly crude exports from the Organization of the Petroleum Exporting Countries and news that Russia has ruled out deeper OPEC-led production cuts.
August WTI crude fell $1.94, or 4.1%, to settle $45.13 a barrel on the New York Mercantile Exchange.
Brent crude for September delivery lost $1.82, or 3.67%, to $47.79 a barrel.
- The U.S. dollar held on to gains as investors parsed minutes from the Federal Reserve’s last meeting for clues on the path for U.S. interest-rate increases.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, rose 0.1% to 88.46, relatively unchanged after the release of meeting minutes.
- The minutes from the central bank’s June meeting showed officials debated plans to start slowly shrinking the central bank’s large portfolio of bonds and other assets in the next few months.
- Some officials argued that the Fed had sufficiently prepared markets to begin the balance-sheet reduction process, while others suggested waiting for more proof that inflation would pick up.
- The Fed raised rates at the June meeting and stuck by its projection for one more rate increase in 2017. But some investors remain skeptical amid data showing a slowdown in U.S. inflation.
The U.S. dollar fell 6% in the first half of the year, its steepest decline for that period since 2011, as investors worried weak U.S. data and political uncertainty would weigh on the Fed’s plans for raising rates.
A slide in oil prices on Wednesday dragged down the currencies of commodity exporters.
The U.S. dollar rose 0.3% against the Canadian dollar, 1.3% against the Russian ruble and 0.7% against the Norwegian krone.
- The Australian dollar is lower against its US counterpart which has remained steady, while oil prices have pluneged.
- At 7.00 AEST on Thursday, the Australian dollar was worth 76.04 US cents, down from 76.26 US cents on Wednesday.
- European shares rose on Wednesday at the end of a volatile session with gains among consumer stocks, led by Adidas on optimism over its upcoming earnings.
- A renewed slide in oil prices kept a lid on the increase, with the pan-European STOXX 600 index ending up 0.2 per cent while the eurozone blue chip index closed flat.
- Germany’s DAX closed up 0.13 per cent at 12,453.68.
- Britain’s major share index climbed higher, bolstered by buoyant housebuilders after a strong trading update from Persimmon, as strength in consumer staples underpinned gains.
- The FTSE 100 rose 0.14 per cent to 7,367.60, while mid-caps gained 0.8 per cent.
- Asian share markets were subdued for a second session on Wednesday as simmering tensions on the Korean peninsula supported safe-harbours including the yen, bonds and gold.
- A holiday in the United States and a dearth of major data kept activity muted.
- The Caixin/Markit services purchasing managers’ index (PMI) for China dropped to 51.6 in June, from 52.8 in May.
- MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1 per cent.
- The Nikkei 225 added 0.25 per cent to 20,081.63.
- Hong Kong shares rebounded helped by consumer and financial stocks and as index heavyweight Tencent Holdings bounced from a seven-week low.
- The Hang Seng index rose 0.52 per cent to 25,521.97, while the China Enterprises Index gained 0.7 per cent to 10,380.73 points.
- Most sectors rose, with financials and consumer stocks leading the gains. China’s blue-chips snapped a three-day losing streak, helped by a wider quota for Hong Kong institutional investors and a cabinet paper promoting the use of commercial pension money in capital markets.
- The blue-chip CSI300 index rose 1.10 per cent, to 3,659.68 points, while the Shanghai Composite Index gained 0.76 per cent to 3,207.13 points.
- The S&P/NZX 50 Index declined 0.3 per cent to 7620.64.
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