Wednesday: 21st June 2017
Each Market In Focus
- At 8.00 a.m. AEDT on Monday, the local share price index was down 29 points, or 0.51 per cent, at 5,667.
- Australian shares snapped two straight sessions of gains as banks and energy companies led broad selling, sending the stock market down to a more than one-week low.
- Sentiment in the financial sector soured after the federal government passed a new tax on the largest lenders’ liabilities and Moody’s Investors Service downgraded its credit rating on a clutch of banks, including the big four lenders.
- Energy stocks also faced heavy selling as crude oil prices held steady near seven-month lows in Asian trading amid investor skepticism over efforts by the world’s biggest producers to curb the global supply glut.
- Finishing at its lows for the day, the S&P/ASX 200 dropped 47.9 points, or 0.8%, to 5757.3. That wiped out gains over the past two sessions.
- The four big banks collectively knocked almost 16 points off the index as they pulled back from a recovery over the past week.
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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- US have stocks closed lower as a sharp drop in oil prices hurt energy stocks and retail shares were pulled down by concerns about Amazon.com’s plan to boost its apparel business, while investors also worried about future Federal Reserve rate hikes.
- Healthcare was the brightest spot in stocks on Tuesday with a 0.3 per cent rise while the consumer discretionary index showed a 1.25 per cent drop in line with the energy index decline.
- Oil prices fell about two per cent after news of increases in supply by several key producers, a trend that has undermined attempts by OPEC and other producers to support the market through reduced output.
- The Dow Jones Industrial Average fell 0.29 per cent to 21,467.14
- The S&P 500 lost 0.67 per cent to 2437.03
- The Nasdaq Composite declined 0.82 per cent to 6188.03.
- Gold for August delivery closed down 0.3% at $1,243.50 a troy ounce, its lowest settlement value since May 16.
- Copper prices fell to a two-week low, dragged down by a drop in crude and a stronger dollar.
- Copper for July delivery closed down 1.4% at $2.5545 a pound on the Comex division of the New York Mercantile Exchange, the lowest settlement since June 7.
- IRON ORE: $55.80 -0.38( July contract )
- U.S. oil prices tumbled into a bear market, as the oversupply concerns that have roiled markets over the past few weeks put further pressure on investors.
- Bets that global exporters could ease a supply glut through a historic agreement to cut output have been undermined as production has increased in the U.S., Libya and Nigeria.
- Global inventories of crude oil and oil products have remained high, compounding on worries that rebalancing the global oil market will be harder than previously thought.
- Light, sweet crude for July delivery settled down 97 cents, or 2.2%, at $43.23 a barrel on the New York Mercantile Exchange, more than 20% below this year’s high of $54.45 on Feb. 23.
- Brent, the global benchmark, settled down 89 cents, or 1.9%, to $46.02 a barrel.
- The close put oil in a bear market for the first time since August 2016, before the Organization of the Petroleum Exporting Countries and other major oil-producing nations agreed to limit output by about 1.8 million barrels a day at the end of last year. In May, the group renewed the deal through March 2018.
The U.S. dollar rose to a three-week high intraday as investors grew more optimistic that the Federal Reserve will raise interest rates again this year.
The WSJ Dollar Index, which measures the U.S. currency against 16 others, rose 0.3% to 88.99, its highest intraday level since May 30.
The U.S. dollar was supported by comments made Monday by New York Fed President William Dudley, expressing confidence in the U.S. economy and the prospect for higher inflation.
- The Australian dollar is sharply down against its US counterpart as the greenback lifts against most currencies, except the yen and the kiwi dollar, in a lively session.
- At 7.00 a.m. AEST on Wednesday, the Australian dollar was worth 75.77 US cents, down from 76.10 US cents on Tuesday.
- European shares were pressured Tuesday by the fall in oil prices. Eurozone blue chips closed 0.4 per cent lower and the regional STOXX index fell 0.6 per cent, retreating from a two-week high and giving up most of the gains made in the previous session.
- Europe’s oil and gas companies fell more than 2 per cent with Royal Dutch Shell down 2.3 per cent and BP down 2.6 per cent after oil prices hit seven-month lows .
- Mining shares fell more than 3 per cent. Aside from the slide in oil-related stocks, Germany’s Prosiebensat 1 was a bright spot, after it sold its online travel agency Etraveli to CVC.
- Germany’s benchmark DAX index touched a fresh record high before retreating 0.6 per cent to 12,814.79.
- Britain’s FTSE 100 index, the worst-performing major benchmark in Europe this year, fell 0.7 per cent to 7,472.71, hit by its heavy weighting in commodities stocks.
- Japan’s Nikkei rose more than 1 per cent to a near two-year high, encouraged by rebound in US hi-tech shares as investors bet on solid growth in the economy and corporate profits globally.
- MSCI’s broadest index of Asia-Pacific shares outside Japan held firm near a two-year high struck last week, but was little changed on the day.
- Hong Kong stocks fell as excitement over the city’s plans for a new listing board for “new economy” companies waned, and investors shifted their attention to economic fundamentals.
- The Hang Seng index fell 0.3 per cent, to 25,843.04, while the China Enterprises Index lost 0.5 per cent, to 10,468.48 points.
- China stocks slipped amid lingering concerns over liquidity conditions, even as investors awaited a decision by US index provider MSCI on whether to add mainland shares to its Emerging Markets Index .
- The blue-chip CSI300 index fell 0.2 per cent, to 3,546.49 points, while the Shanghai Composite Index shed 0.2 per cent to 3,140.01 points.
- The S&P/NZX 50 index dipped 0.07 per cent to 7586.53.
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