Tuesday: 9th May 2017
Each Market In Focus
The Australian market looks set to open flat as relief over centrist candidate Emmanuel Macron’s presidential election win fades.
At 7.00 A.M. AEDT on Tuesday, the share price futures index was up five points, or 0.09 per cent, at 5,867.
Locally, in economic news on Tuesday, the federal government hands down its budget at 1930 AEST.
The Australian Bureau of Statistics releases retail trade figures for March..
In equities news, the Commonwealth Bank is expected to release its March quarter trading update, while Incitec Pivot is slated to post half-year results. And, Qantas Airways chief executive is listed to speak at a business lunch in Perth.
The Australian market on Monday snapped a four-day losing streak, after encouraging US jobs data, the election of pro-European centrist Emmanuel Macron as French president, and other factors buoyed investors.
The benchmark S&P/ASX200 index gained 34.3 points, or 0.59 per cent, to 5,870.9 points.
The broader All Ordinaries index was up 34 points, or 0.58 per cent, to 5,897.8 points.
Meanwhile, the Australian dollar has fallen against its US counterpart as the US dollar traded higher against all other major currencies with traders trading off last week’s solid jobs figures.
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 has ended flat briefly touching a record high, while Wall Street’s “fear gauge” has dropped to its lowest in more than two decades following centrist Emmanuel Macron’s victory in the French presidential election.
- The CBOE Volatility index dropped 7.6 per cent to 9.77, its lowest since 1993 as investors took comfort from Macron’s victory, as well as from strong quarterly reports in recent weeks.
- A declining VIX typically indicates a bullish outlook for stocks, but the extreme lows the index has touched are sounding caution for some stock investors.
- Seven of the 11 major S&P sectors dipped, with the materials index down 0.91 per cent and energy rising 0.7 per cent on the back of higher oil prices.
- The Dow Jones Industrial Average edged up 0.03 per cent
- The S&P 500 gained less than a hundredth of a per cent to 2,399.37. It briefly touched a record high of 2,399.94.
- The Nasdaq Composite added 0.03 per cent.
- Gold futures for June delivery settled up 20 cents at $1,227.10 a troy ounce in a slight recovery from the selloff which followed pro-European Union candidate Emmanuel Macron’s victory in the French presidential election on Sunday. Prices recovered Monday as traders turned to examine coming elections in Germany and Italy, as well as the strong likelihood that the Federal Reserve would raise interest rates in June
- IRON ORE: $61.81 -0.90 ( May contract )
- Crude futures edged higher, amid expectations that major producers will cut their supplies for longer in a bid to reduce high global inventories.
- Prices were supported by comments from Saudi Arabia’s Energy Minister Khalid Al-Falih, who Monday said he was confident production cuts led by the Organization of the Petroleum Exporting Countries will be extended into the second half of the year or even longer.
- The election of Emmanuel Macron, a pro-free trade centrist, as France’s next president also helped to assuage concerns that the European economy may see further headwinds.
- U.S. crude futures rose 21 cents, or 0.45%, to $46.43 a barrel on the New York Mercantile Exchange.
- Brent, the global benchmark, rose 24 cents, or 0.49% to $49.34 a barrel on ICE Futures Europe.
- Oil prices have fallen more than 5% in the last week and are still hovering around their lowest levels since November, before OPEC and other major producers struck their
- The euro slid as investors took profits after the weekend’s French election outcome, while the dollar firmed ahead of important U.S. economic data.
- The euro was recently down 0.7% to $1.09255, off Sunday’s highs of above $1.10. Investors drove the euro to a seven-month high against the dollar after Emmanuel Macron’s victory over anti-euro candidate Marine Le Pen in Sunday’s French presidential election.
- Mr. Macron’s win allows investors to refocus on improving European growth and the prospects for policy tightening by the European Central Bank, which should support the euro.
- Still, analysts warn the euro will face more political risks in the months ahead, including next month’s French parliamentary elections. Italian elections, which must be held by May 2018, could also see anti-euro candidates gain ground in a country beset by economic problems.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, rose 0.5% to 90.13. Investors are looking ahead to important retail sales and inflation data later in the week.
- Friday’s closely watched U.S. jobs report showed hiring rebounded in April but the pace of wage growth slowed.
- Analysts said the report supports the Fed’s case for raising interest-rates at a steady pace.
- The Australian dollar is sharply lower against its US counterpart ahead of the federal budget.
- At 7.00 a.m. AEDT on Tuesday, the Australian dollar was worth 73.85 US cents, down from 74.04 US cents on Monday.
European shares dipped on Monday as the relief rally that greeted Emmanuel Macron’s victory in the French presidential election petered out although strong earnings growth continued to underpin demand for the region’s equities.
Average earnings growth for major eurozone blue-chip firms is more than 20 per cent, according to Thomson Reuters data, while political risk that had put off some investors is fading.
The pan-European STOXX 600 index was down 0.2 per cent, while France’s CAC fell 0.9 per cent after hitting its highest levels for more than nine years.
Germany’s DAX dipped 0.2 per cent after touching a new all-time high.
London’s FTSE100 lifted 0.05 per cent.
Most Asian markets rose on investor relief after centrist Emmanuel Macron comfortably won the French presidential election, beating his far-right rival Marine Le Pen.
Hong Kong’s Hang Seng index ended up 0.4 per cent, while the China Enterprises Index gained 0.6 per cent.
The upbeat mood after French election results helped shield Hong Kong from bearishness in China, where the benchmark stock index closed at near seven-month lows amid deepening fears over tighter regulations.
China stocks extended falls, with the benchmark Shanghai Composite Index ending at its lowest close since mid-October, as investor fears over tightening regulations deepened.
The blue-chip CSI300 index fell 0.7 per cent, while the Shanghai Composite Index lost 0.8 per cent.
The China Insurance Regulatory Commission (CIRC) said loopholes should be plugged, and in its latest bid to curb “aggressive” insurance money, it barred Anbang Life Insurance, a unit of Chinese conglomerate Anbang Group, from applying to issue new products for three months.
Meanwhile, Tokyo shares, resuming trade after a three-day market holiday, closed up 2.3 per cent at a 17-month high.
The S&P/NZX 50 index rose 0.8 per cent to 7426.460.
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