Wednesday: 12th April 2017
Each Market In Focus
- The Australian share market looks set to open slightly higher amid subdued trade in global markets ahead of the Easter holiday and brushing off concerns about military developments in Syria and North Korea.
- At 8.00 a.m. AEST on Wednesday the share price futures index was up 18 points, or 0.3 per cent, at 5,936.
- In local economic news on Wednesday, the Westpac-Melbourne Institute Monthly Consumer Confidence Index and official lending finance figures are due out.
- The share market remained at a two-year high on Tuesday after a third straight day of gains, thanks to strong demand for financial and energy companies.
- The benchmark S&P/ASX200 gained 16.4 points, or 0.28 per cent, to 5,929.3 points
- The broader All Ordinaries index gained 15.7 points, 0.26 per cent, to 5,964.6 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. The filter uses an above 50 cent price filter, and the codes in Blue are on our watch list. ( 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. The filter uses an above 50 cent price filter, and the codes in Blue are on our watch list. ( source Metastock)
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- Anxious investors sought shelter in gold, Treasuries and the yen on Tuesday after reports that Syrian warplanes dropped barrel bombs on rebel-held areas a day after the United States said their use could lead to further US strikes in Syria.
- Also, North Korea state media warned of a nuclear attack on the United States if provoked, as a US Navy strike group moved toward the western Pacific en route to the Korean peninsula.
- US stock indexes were down in afternoon trading but still above session lows after the Syrian Observatory for Human Rights report of the bombing, which a Syrian military source denied.
- The United States and other countries blamed Syrian President Bashar al-Assad for a deadly gas attack last week and US President Donald Trump responded by firing cruise missiles at a Syrian air base while Russian President Vladimir Putin has stood by Moscow’s ally Assad, who denies blame.
- On top of political concerns investors also have last Friday’s weak US payroll number weighing on them ahead of the first-quarter GDP report next week, according to Christopher, who says stocks have already priced in the year’s economic growth.
- The Dow Jones Industrial Average was down 22.85 points, or 0.11 per cent, to 20,635.17
- The S&P 500 lost 6.02 points, or 0.26 per cent, to 2,351.14
- The Nasdaq Composite dropped 22.78 points, or 0.39 per cent, to 5,858.14.
- Gold prices rallied to settle at their highest levels in about five months as investors grew jittery over the impending French presidential election as well as U.S. relations with Russia and North Korea.
- June gold gained $20.30, or 1.6%, to settle at $1,274.20 an ounce.
- The settlement was the highest since early November.
- Prices are also ended above their 200-day moving average of $1,260.65, suggesting positive momentum building in the yellow metal.
- IRON ORE: $74.89 -0.52 ( April contract )
- Oil futures flipped to small gains and extended a lengthy rally after news that raised expectations the world’s biggest crude exporters will extend an agreement to cut output.
- Light, sweet crude for May settled up 32 cents, or 0.6%, at $53.40 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, gained 25 cents, or 0.4%, to $56.23 a barrel on ICE Futures Europe. Both hit their highest settlements since March 1.
- The Japanese yen jumped to its highest level in five months as geopolitical tensions drove investors into assets seen as safe.
- The dollar slid 1.1% against the Japanese yen to Y109.7, its lowest level since mid-November. Other assets that tend to benefit in times of market nervousness, including the Swiss franc and gold, also strengthened.
- Investors are digesting a number of geopolitical events this week. U.S. Secretary of State Rex Tillerson arrived in Moscow Tuesday, as the administration questions Russia’s role in a suspected chemical weapons attack in Syria.
- The U.S. struck a Syrian air base last week in response to the attack.
- The Australian dollar is a touch lower and bonds have rallied as global concerns rise over the conflict in Syria and tensions on the Korean peninsula.
- The local currency was trading at 74.99 US cents at 8.00 AEST on Wednesday, from 75.03 on Tuesday.
- European shares edged higher, reversing early falls, but Wall Street looked set to open lower, according to index futures , as uncertainty over looming French presidential elections also simmered.
- US Secretary of State Rex Tillerson carried a unified message from world powers to Moscow, denouncing Russian support for Syria, after a meeting with foreign ministers of the Group of Seven major advanced economies and Middle East allies.
- Western countries blame Syrian President Bashar al-Assad for last week’s deadly gas attack. US President Donald Trump responded by firing cruise missiles at a Syrian air base. Russian President Vladimir Putin has stood by Moscow’s ally Assad, who denies blame.
- Gold was taking a run at Friday’s highest level since November, emerging market stocks were on their worst run of the year so far, while the euro fell to a four-month low versus a broadly stronger Japanese yen.
- The latest polls from France are providing another twist in the race for the presidency, with far-left candidate Jean-Luc Melenchon making ground against the rest of the pack before the first round of voting on April 23.
- This has raised the possibility that Melenchon could square off against far-right leader Marine Le Pen – both of whom are eurosceptics – in the election’s decisive second round in May.
- German Bunds yields dipped below 0.20 per cent for the first time in more than five weeks, before edging higher, while French yields hit a one-week high of 0.96 per cent leaving the gap between the two – a key gauge of investors’ concerns – at its widest in six weeks.
- Then pan-European STOXX 600 share index eked out gains of 0.1 per cent, led higher by miners as the gold price rose.
- Asian stocks fell on Tuesday as the political tinderbox in the Middle East and the Korean Peninsula added to uncertainty over the looming French vote, pushing nervous investors into safer assets such as the yen and Treasuries.
- Even oil, which advanced earlier on supply concerns in the wake of US missile strikes on a Syrian air base last week and a shutdown at a Libyan oilfield, reversed to trade lower, breaking its multi-session winning streak.
- MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.3 per cent.
- The heightened geopolitical risks come at a time when the global economy has shown steady improvement, led by the United States and encouraging momentum in export-reliant Asia.
- Tokyo’s Nikkei closed 0.3 per cent lower, dragged down by a stronger yen. Toshiba Corp. was among the biggest decliners, ending the day 2.7 per cent lower, with the conglomerate expected to file its twice-delayed earnings results on Tuesday, without a full sign-off by auditors.
- Accountants question the numbers at the company’s US nuclear subsidiary Westinghouse Electric Co., where massive cost overruns have pushed the Japanese parent company to the brink.
- Chinese shares lost 0.4 per cent, while Hong Kong stocks slumped 0.9 per cent.
- South Korean shares and Taiwan were also lower.
- New Zealand shares rose on Tuesday, with Comvita recovering some ground after last week’s slump as the government proposed a definition of manuka honey.
- Tourism Holdings, SkyCity Entertainment Group and Arvida Group were among leading gainers.
- The S&P/NZX 50 Index rose 15.52 points, or 0.2 per cent, to 7254.38. Within the index, 31 stocks gained, 10 fell and nine were unchanged.
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