Wednesday: 14th June 2017
Each Market In Focus
- The Australian market looks set to open modestly higher, following Wall Street’s positive lead as international tech stocks regrouped and investors anticipated an interest rate rise from the US central bank.
- At 7.00 AEST on Wednesday, the share price futures index was up seven points, or 0.12 per cent, at 5,789.
- Locally, no major economic or equities news is expected on Wednesday.
- However, attention will focus on troubled free-to-air TV broadcaster Ten Network which on Tuesday went into a trading halt after three key backers refused to support a new funding deal.
- The network must find new financiers to back a $250 million debt facility or face possible administration.
- Meanwhile, Vocus has an institutional investor day. The Australian market on Tuesday posted its best session since November, helped by a strong performance by the big banks.
- The benchmark S&P/ASX200 index gained 95 points, or 1.67 per cent, to 5,772.8 points.
- The broader All Ordinaries index rose 86.3 points, or 1.51 per cent, to 5,801.8 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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Wall Street has gained, with the S&P 500, Dow industrials and Russell 2000 setting record closing highs, as technology stocks bounced back and investors positioned for an expected Federal Reserve interest rate rise.
The S&P 500 technology sector rose 0.9 per cent on Tuesday, recovering from its biggest two-day decline in nearly a year that also weighed on the broader market. Big tech names, such as Microsoft and Facebook, pushed the S&P 500 higher.
Financials gained 0.4 per cent, while energy rose 0.7 per cent. Materials were the top gaining sector, rising 1.3 per cent.
The Dow Jones Industrial Average rose 0.44 per cent to 21,328.47, the S&P 500 gained 0.45 per cent to 2,440.35 and the Nasdaq Composite added 0.73 per cent to 6,220.37.
Traders are overwhelmingly expecting an interest rate increase when the Fed concludes its two-day meeting on Wednesday (early Thursday AEST).
Gold prices fell for the fifth session in a row, as the prospect of higher interest rates outweighed concerns about political risk.
Gold for August delivery settled down 30 cents at $1,268.60 a troy ounce on the Comex division of the New York Mercantile Exchange, paring losses after trading as low as $1,260.50 earlier in the session. Prices closed at the lowest level since May 30.
Investors have sold off positions in gold as the market expects the Federal Reserve to raise short-term interest rates at the meeting this week.
Meanwhile, copper prices remained under pressure. Futures for July delivery fell 0.7% to $2.5965 a pound in New York, closing near a one-week low.
- IRON ORE: $52.81 -1.60 ( July contract )
- Oil prices turned lower intraday after the Organization of the Petroleum Exporting Countries said it had produced more crude in May.
- OPEC said its output rose 1% to 32.14 million barrels a day in May, led by increases in Libya, Nigeria and Iraq, according to its closely watched monthly report.
- U.S. crude futures fell 42 cents, or 0.91%, to $45.66 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 30 cents, or 0.62%, to $47.99 on ICE Futures Europe.
- The U.S. dollar wavered intraday as the Federal Reserve began its latest policy meeting.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, was down 0.1% to 88.36.
- The Fed is widely expected to raise its benchmark interest rate by a quarter percentage when it concludes its meeting Wednesday.
- Investors will focus on the Fed’s statement and post-meeting press conference, which could offer clues on the central bank’s plans for future rate increases and a shrinking of its balance sheet.
- The Australian dollar is lower against its US counterpart, pulling back from a multi-week high amid a sharp fall in the price of iron ore .
- At 7.00 AEST on Wednesday, the Australian dollar was worth 75.37 US cents, down from 75.50 US cents on Tuesday.
- A recovery in tech stocks and fresh optimism over troubled Italians banks lifted European shares from seven-week lows on Tuesday. Capita led the gains after offering a reassuring outlook.
- The pan-European STOXX 600 index ended up 0.6 per cent, almost fully recovering losses from the previous session. Italy’s benchmark rose 0.9 per cent.
- Tech stocks rose more than 1 per cent after Monday’s sell-off, when concern over valuations at US. companies spilled over to Europe, particularly companies supplying Apple.
- Germany’s DAX gained 0.6 per cent to 12,764.98. UK blue chips eased as a bounce in the pound hit export-oriented companies, overshadowing a recovery in tech stocks, while a rally in outsourcing firm Capita led mid-caps higher.
- There was relief after Monday’s tech stocks sell-off, which hit UK tech firms Micro Focus and Sophos, but trading remained muted with the FTSE 100 ending down 0.15 per cent to 7,500.44 points as investors continued to sift through the fall-out from Britain’s election.
- The blue-chip index reversed earlier small gains as big international firms such as British American Tobacco and GlaxoSmithKline progressively lost ground, as high inflation numbers helped the sterling recover.
Asian stocks mostly rebounded on Tuesday despite a further slide in US tech shares.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent, recouping about half of the previous session’s losses as regional tech shares regained their composure.
Japan’s Nikkei slipped 0. 05 per cent to 19,898.75.
Hong Kong stocks followed most Asian markets higher, recovering some of the previous session’s losses, as investors shrugged off a further slide in US tech shares.
But investors remained cautious ahead of a likely US interest rate rise early on Thursday Asia time. And if the Federal Reserve goes ahead with the raise, Hong Kong will also increase its rates.
The Hang Seng index, which tumbled 1.2 per cent on Monday, rose 0.6 per cent, to 25,852.10, while the China Enterprises Index gained 0.4 per cent, to 10,525.74 points.
Strong gains in small-cap shares led China stocks higher, but trading was thin as investors remained cautious ahead of a likely US interest rate rise.
The blue-chip CSI300 index rose 0.2 per cent, to 3,582.27 points, while the Shanghai Composite Index gained 0.4 per cent to 3,153.74 points.
The S&P/NZX 50 index rose 0.1 per cent to 7440.08.
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