Thursday: 12th December 2016
Each Market In Focus
The Australian market looks set to open flat with markets in wait-and-see mode ahead of US President Donald Trump’s first address to Congress and with local growth figures due later on Wednesday.
At 8.00 a.m AEDT on Wednesday, the share price futures index was down six points at 5,678.
In the US, the Dow Jones Industrial Average looked to have snapped a 12-session winning streak, and was down 0.13 per cent in late afternoon trading.
Markets hope to hear details on President Trump’s promised tax and infrastructure spending plans in his speech, due at 9pm Tuesday EDT (1300 Wednesday AETD).
Meanwhile, in local economic news on Wednesday, the Australian Bureau of Statistics releases national accounts – including gross domestic product – figures for the December quarters.
No major equities news is expected
The Australian market on Tuesday closed lower for the fourth straight day.
- AUS Perpetual Ltd (PPT.AU) Interim 2017 Ex-dividend date
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- NZ Feb QV Nationwide Residential Property Values
- AUS Feb Australian PMI
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- NZ Q4 Overseas Trade Indexes (Volumes / Prices) provisional
- AUS Q4 GDP
- AUS Feb Commodity Price Index
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)
US stocks have traded lower, with the Dow set to snap a 12-day winning streak, as financial and consumer discretionary stocks weigh and investors await President Donald Trump’s speech to a joint session of Congress.
The address at 9pm Tuesday EDT (1300 Wednesday AEDT) could touch on tax reforms, defence spending and his plans to overhaul the US healthcare system.
But on Wall Street, financial and consumer discretionary stocks dropped and pulled down the three major indexes, which were set for their worst one-day decline in four weeks.
Target slumped 12.2 per cent and was on track for its worst day since December 2008, after the retailer’s full-year profit forecast missed estimates and the company said it would take a $US1 billion hit to its operating profit.
Also weighing on sentiment was data that showed US economic growth slowed in the fourth quarter.
In late afternoon trading, the Dow Jones Industrial Average was down 0.13 per cent at 20,801.9
The S&P 500 was down 0.26 per cent at 2,361.85.
The Nasdaq Composite was down 0.59 per cent at 5,824.96.
- Gold prices edged lower as investors awaited U.S. President Donald Trump’s first address to Congress for hints on the progress of tax reform and infrastructure spending plans.
- Gold for April delivery settled down 0.4% to $1,253.90 a troy ounce on the Comex division of the New York Mercantile Exchange, breaking a three-day winning streak that led prices to a three-month high.
The London Metal Exchange’s three-month copper contract closed up 0.7% to $5,973.00 a metric ton.
- IRON ORE: $88.60 -0.35 ( March contract )
- Crude prices pared losses but remained within their recent narrow trading band as high levels of oil inventories in the U.S. continued to weigh on the market.
- U.S. crude futures settled down 4 cents, or 0.07%, at $54.01 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 34 cents, or 0.61%, to $55.59 a barrel on ICE Futures Europe.
The U.S. dollar edged lower intraday, as investors looked to U.S. President Donald Trump’s address to Congress this evening, awaiting details on how the new administration plans to push through promised fiscal spending.
The Wall Street Journal Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently down 0.2% at 90.80.
Mr. Trump is expected to call for a $20 billion boost in current military spending and sharp cuts in other programs, and to insist on raising budget caps that call for future cuts to defense outlays.
The Australian dollar is slightly lower against its US counterpart with markets in wait-and-see mode ahead of US president Donald Trump’s keenly awaited address to Congress and local economic growth data.
At 7.00 A.M. AEDT on Wednesday, the Australian dollar was worth 76.72 US cents, down from 76.86 US cents on Tuesday.
European shares edged higher on Tuesday as investors awaited President Trump’s first speech to Congress.
The STOXX 600 rose 0.2 per cent to snap a four-session losing streak and end February up 2.8 per cent, close to a 14-month peak hit earlier in February.
European shares have rallied more than 10 per cent since Trump was elected in November as global stock markets surged in anticipation of his expansive economic policies.
Investors have also cheered data confirming an economic recovery in Europe and a turn around in company earnings.
But on Tuesday investors said there were risks that Trump’s speech later in the day could disappoint, triggering a sell-off.
Germany’s DAX gained 0.10 per cent to 11,834.41.
London’s FTSE 100 rose 0.14 per cent to 7,263.44.
- Asian shares lost their grip on Tuesday but were still on track for a winning month, bolstered by gains on Wall Street as investors awaited a speech by President Trump for signals on tax reform and infrastructure spending.
- MSCI’s broadest index of Asia-Pacific shares outside Japan erased earlier modest gains and edged down slightly by mid-afternoon.
- Tokyo’s Nikkei 225 closed flat, up just 0.06 per cent, at 19,118.99.
- Hong Kong stocks fell for the fourth session in a row as a months-long rally showed further signs of fatigue, and investors awaited President Trump’s speech.
- The Hang Seng index fell 0.77 per cent to 23,740.73 points, while the China Enterprises Index lost 0.3 per cent to 10,297.96.
- China stocks edged up in thin trading as caution prevailed following a months-long run-up to the main index’s late-November peak, a key technical resistance.
- The blue-chip CSI300 index rose 0.2 per cent, to 3,452.81 points, while the Shanghai Composite Index gained 0.40 per cent to 3,241.73 points.
- The S&P/NZX50 Index gained 20.61 points, or 0.3 per cent, to 7,079.19.
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