Tuesday: 4th July 2017
Each Market In Focus
- The Australian market looks set to open higher after Wall Street closed mainly positive with the Dow Jones Industrial hitting a record intraday high.
- At 7.00 a.m. AEST on Tuesday, the share price futures index was up 35 points, or 0.62 per cent, at 5,670.
- In the US, the S&P 500 and Dow Industrials rose, with the Dow hitting an intraday record as energy and bank stocks gained, but continued weakness in the technology sector pulled the Nasdaq lower.
- The Dow Jones Industrial Average rose 0.61 per cent, the S&P 500 gained 0.23 per cent but the Nasdaq Composite dropped 0.49 per cent.
- Locally, in economic news on Tuesday, the Reserve Bank of Australia holds its monthly board meeting and makes its interest rates announcement.
- The Australian Bureau of Statistics is due to release June’s retail trade figures, and the ANZ-Roy Morgan Consumer Confidence weekly survey is also due out.
- No major equities news is expected.
- The Australian market on Monday closed lower with all sectors except for energy in negative territory, with a lift in world oil prices keeping energy stocks just in the black.
- The benchmark S&P/ASX 200 index fell 37 points, or 0.65 per cent, to 5,684.5 points
- The broader All Ordinaries index lost 36.5 points, or 0.63 per cent, to 5,727.5 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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- The S&P 500 and Dow Industrials have closed higher, with the Dow hitting an intraday record as energy and bank stocks gained, but continued weakness in the technology sector pulled the Nasdaq lower.
- The S&P energy index rose 2 per cent on Monday, its best performance in nearly a month, led by gains in Exxon Mobil and Chevron.
- Both Brent and US crude climbed more than 1 per cent to resume its longest stretch of daily rallies in more than five years after data pointed to moderating US output, pushing energy names higher.
- Financials, up 1.3 per cent, also supported gains. With the sector notching its sixth advance in the seven sessions.
- The Nasdaq was lower as the technology sector saw its recent struggles continue, down 0.9 on the session after a drop of nearly 3 per cent last week.
- The Dow Jones Industrial Average rose 0.61 per cent to 21,479.27, the S&P 500 gained 0.23 per cent to 2429.01 while the Nasdaq Composite dropped 0.49 per cent to 6110.06.
Gold prices fell to a seven-week low, as investors continued to favor riskier assets and the U.S. dollar rose.
Gold for August delivery settled down 1.9% to $1,219.20 a troy ounce on the Comex division of the New York Mercantile Exchange, closing at the lowest level since May 10 in the biggest one-day drop year to date.
Meanwhile, copper for September delivery settled down 0.7% to $2.6930 a pound in New York.
- IRON ORE: $63.69 +1.92 ( August contract )
- U.S. crude futures climbed intraday, on track for their longest stretch of daily gains in nearly eight years amid indications that U.S. oil output may not be as resilient as many anticipated in the face of lower prices.
- U.S. crude futures recently traded up 54 cents, or 1.17%, at $46.58 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 50 cents, or 1.03%, to $49.27 a barrel on ICE Futures Europe.
This would be oil’s eighth straight session of gains-the longest streak for West Texas Intermediate, the U.S. benchmark, since a 10-day rally in late 2009 and early 2010.
Brent hasn’t experienced such a winning streak since 2012.
The move higher is a sharp turnaround from last month, when U.S. crude prices hit a 10-month low and Brent fell to its lowest level since November. Oil slid into bear market territory in June, down more than 20% from highs hit in February.
But fresh U.S. data late last week has raised some investors’ hopes that the resurgence of U.S. crude production may not be unstoppable. Growth in U.S. output has been hampering efforts led by the Organization of the Petroleum Exporting Countries to reduce global oil inventories.
- The U.S. dollar rallied after a strong U.S. manufacturing report bolstered confidence in the U.S. economy.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, rose 0.6% to 88.29. The dollar jumped against the euro, Japanese yen and many emerging-market currencies.
- The Australian dollar is lower against a strengthening US dollar ahead of the Reserve Bank of Australia’s interest rate announcement and retail trade figures.
- At 7.00 a.m. AEST on Tuesday, the Australian dollar was worth 76.59 US cents, down from 76.73 US cents on Monday.
- European shares kicked off the new quarter with gains on Monday as talk about interest rate rises boosted bank stocks,
- Investors appeared to have got used to the idea central banks including the European Central Bank could move away from stimulus measures such as bond purchases and ultra-low interest rates.
- MSCI’S all world index rose 0.2 per cent to erase Friday’s losses. The pan-European STOXX 600 index rose 1.1 per cent posting its best day in more than 2 months.
- Germany’s DAX gained 1.22 per cent to close at 12,475.31.
- Britain’s major share index also made a positive start to the second half on Monday, bolstered by strong gains among financials, miners and energy companies as oil prices firmed.
- The FTSE 100 ended the day 0.88 per cent higher at 7,377.09 points, recovering from losses last week, and was more or less in line with the broader European market which gained 1.1 per cent on the day.
- Oil majors BP and Royal Dutch Shell were up 1.9 per cent and 1.8 per cent respectively.
- HSBC, Lloyds and Barclays were among top gainers after several central bankers suggested last week that monetary policy could soon start to tighten.
- Asian stocks hardly budged on the first day of a new quarter. MSCI’s broadest index of Asia-Pacific shares outside Japan ticked down 0.1 per cent, staying within a stone’s throw of its two-year peak hit last week while Japan’s Nikkei ticked up 0.11 per cent.
- Financial shares rose in Hong Kong on Monday, on the back of a new bond trading link between Hong Kong and China, but the overall market was largely flat as blue-chips generally underperformed and the service sector slipped.
- The Hang Seng index rose 0.08 per cent, to 25,784.17 points, while the China Enterprises Index gained 0.5 per cent, to 10,412.48 points.
- China’s blue-chip stocks fell in thin trading on Monday, as investors were cautious at the start of the mid-year earnings season amid lingering concerns of an economic slowdown in the second half and monetary tightening.
- The blue-chip CSI300 index fell 0.43 per cent, to 3,650.85 points, with some industry-leading blue-chips retreating from record highs after having rallied strongly this year.
- The Shanghai Composite Index added 0.11 per cent to 3,195.91 points.
- The S&P/NZX 50 Index dropped 0.3 per cent to 7,588.43.
Important News Events For Today
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