Tuesday: 5th September 2017
Each Market In Focus
- The Australian market looks set to open modestly higher, bucking the negative trend of most international markets with investors spooked by North Korea’s nuclear test and fleeing to safe havens.
- At 7.00 AEST on Tuesday, the share price futures index was up 11 points, or 0.19 per cent, at 5,691.
- US markets were closed on Monday for the Labour Day holiday, but European and most Asian equities markets fell following North Korea’s nuclear test on Sunday.
- The missile test spooked investors who headed to safe-haven assets such as gold.
- Locally, in economic news on Tuesday, the Reserve Bank of Australia holds its monthly board meeting and announces its interest rate decision.
- Meanwhile, RBA Governor Philip Lowe is slated to speak at the RBA board dinner in Brisbane Tuesday evening.
- The Australian Bureau of Statistics releases the current account balance for the June quarter.
- The Ai Group’s Performance of Services Index (PSI) for August is expected, as is the ANZ-Roy Morgan Consumer Confidence weekly survey.
- No major equities news is expected, but there is a Surfstitch creditors meeting in Sydney.
- The Australian market on Monday closed closed lower, in line with sentiment across Asian markets, after North Korea’s weekend test of a nuclear bomb unnerved investors and sparked a surge in safe havens such as gold.
- The benchmark S&P/ASX200 index fell 22.3 points, or 0.39 per cent, at 5,763.8 points.
- The September SPI200 futures contract was down 25 points, or 0.44 per cent, at 5,676 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
US markets were closed on Monday for the Labour Day public holiday.
- Gold prices rose Monday, hitting their highest level in 11 months in the morning after North Korea’s latest nuclear test.
- The precious metal was up 0.68% to $1,333.95 a troy ounce in midmorning trade in London.
- Gold prices also rose Friday after the latest monthly U.S. jobs report came in weaker than economists expected.
- Copper prices also moved higher, up 0.85% to $6,904.50 a ton, amid a slip in the dollar.
- IRON ORE: $76.54 +2.02 ( October contract )
- Hurricane Harvey’s buoying effect on oil prices has bled through to ethanol prices, providing millers with more incentive to produce the fuel rather than sugar, Commerzbank said in a note on Monday.
- Chinese regulators on Monday declared initial coin offerings illegal, dealing a blow to the latest financial-markets mania and sending the prices of the two leading cryptocurrencies, Bitcoin and Ether, tumbling.
- The yen and the Swiss franc are the main gainers among major currencies as North Korea’s latest large nuclear test causes investors to seek perceived safe haven assets. USD/JPY was last down 0.56% at 109.65, while USD/CHF fell 0.68% to 0.9582.
- The U.S. dollar weakened broadly in European trade. The WSJ Dollar Index, which measures the U.S. currency against a basket of others, slipped 0.27% to 85.56.
- The U.S. dollar ticked lower in August, notching its longest monthly losing streak in a decade, as investors remain focused on uncertainty surrounding the U.S. economy and the Trump administration.
- The WSJ Dollar Index is down 7.7% this year.
- The focus for the euro is on the European Central Bank meeting Thursday.
- The prospect of the ECB setting out plans to scale back monetary easing has lifted the currency, but the prospect of ECB concerns about a strong euro may temper gains.
- Sterling traded flat against an otherwise weak U.S. dollar after North Korea’s nuclear test and weaker than expected U.S. jobs data Friday, with concerns about lack of progress in talks on the U.K. exiting the EU continuing to weigh on the pound.
- Concerns about lack of progress in talks on the U.K. exiting the EU continue to weigh on the pound. RBC expects it to stay under pressure before Thursday’s first full parliamentary debate on the ‘Great Repeal Bill’ and a large gilt redemption.
- The Australian dollar has slipped against its US counterpart, which also fell, but less so, as gold and defensive currencies fared better than equities and bonds amid quiet markets.
European stocks fell after North Korea’s most powerful nuclear test to date dampened investor appetite for risk.
Sunday’s test, and reports from Seoul that Pyongyang was preparing for another missile launch, sparked warnings from Washington and drove Japan’s Nikkei down almost 1 per cent.
With Wall Street closed for the Labor Day holiday at the start of a week likely to become increasingly dominated by a number of central bank meetings, the fall in European stocks was less marked.
The pan-European STOXX 600 index lost 0.4 per cent, led by a 0.7 per cent fall in banks, while Germany’s DAX fell 0.33 per cent to 12,102.21.
Britain’s top share index slipped, snapping a three-day winning streak as rising geopolitical tensions took their toll, hitting risky assets such as banks, but fears that it would trigger a broader sell-off proved to be unfounded.
Britain’s blue chip FTSE 100 index closed down 0.36 per cent at 7,414.74 points, while mid caps fell 0.5 per cent.
- Most Asian stock markets fell while the yen, gold and sovereign bonds rose as North Korea’s most powerful nuclear test provoked a knee-jerk shift to safe havens.
- Japan’s Nikkei lost 0.93 per cent to 19,508.25 while MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.75 per cent.
- Hong Kong stocks followed regional markets lower on the heightened geopolitical tensions.
- The Hang Seng index fell 0.76 per cent, to 27,740.26, while the China Enterprises Index lost 0.9 per cent, to 11,182.67 points.
- But China’s major indexes ended at fresh 20-month highs on Monday as investors downplayed the longer-term impact on stocks from North Korea’s latest nuclear test.
- The blue-chip CSI300 index rose 0.39 per cent, to 3,845.62 points, while the Shanghai Composite Index gained 0.37 per cent to 3,379.58 points.
- The S&P/NZX 50 Index fell 0.2 per cent to 7,808.22.
Important News Events For Today
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