Wednesday: 9th August 2017
Each Market In Focus
- The Australian market looks set to open flat after European equities rose but Wall Street’s key indexes snapping a nine-day run of gains.
- At 7.00 AEST on Wednesday, the share price futures index was up four points, or 0.07 per cent, at 5,682.
- Locally, in economic news on Wednesday, Reserve Bank of Australia Assistant Governor (Financial Markets) Christopher Kent is slated to deliver the Bloomberg Address in Sydney.
- The Australian Bureau of Statistics releases housing finance figures for June while the Westpac Consumer Confidence Index is also due out.
- In equities, Commonwealth Bank is expected to unveil an eighth straight record full-year profit on Wednesday, while Carsales.com and Skycity Entertainment are also slated to release their full-year results.
- The Australian market on Tuesday closed lower with every sector down after the miners gave up earlier gains as Chinese iron ore futures eased.
- The benchmark S&P/ASX200 index was down 29.8 points, or 0.52 per cent, at 5,743.8 points.
- The broader All Ordinaries index was down 28.8 points, or 0.49 per cent, at 5,795.7 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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US stocks have closed lower after a late afternoon selling spree as investors fled for safety after President Donald Trump vowed to respond aggressively to any threats from North Korea.
After scaling back from record highs earlier in the session, Wall Street’s three major indexes dipped after Trump said North Korea “will be met with fire and fury” like the world has never seen if it threatens the United States.
Japan on Tuesday said it was possible that North Korea had already developed nuclear warheads and warned of an acute threat posed by its weapons programs as Pyongyang’s continued missile and nuclear tests in defiance of UN sanctions.
Investors, who took the North Korea report from Japan in their stride earlier in the day, lost their appetite for risk after Trump’s comments to reporters.
The Dow Jones Industrial Average ended down 0.15 per cent at 22,085.34, snapping a nine-day streak of closing records.
The S&P 500 fell 0.24 per cent to 2474.92
Nasdaq Composite dropped 0.21 per cent to 6370.46.
- The spot price of gold in Sydney at 7.00 AEST was $US1,260.62 per fine ounce, from $US1,259.79 per fine ounce on Tuesday.
- IRON ORE: $73.71 -1.67 ( September contract )
Oil prices gave back gains intraday despite reports that Saudi Arabia is planning to cut exports to Asia next month.
Light, sweet crude for September delivery was recently down 21 cents, or 0.4%, to $49.18 a barrel on the New York Mercantile Exchange.
Brent, the global benchmark, lost 21 cents, or 0.4%, to $52.16.
Saudi Arabia – the world’s largest producer of crude oil – is expected to cut sales of oil supplies to Asia by up to 10% in September, to tackle the global crude glut, according to multiple reports.
However, oil prices wavered between gains and losses as investors stayed focused on the challenges the global oil cartel has faced in lowering supply this year.
The Organization of the Petroleum Exporting Countries and 10 producers outside the cartel – including Russia – agreed late last year to cap their production at around 1.8 million barrels a day lower than peak October 2016 levels.
The oil-market reaction has proved muted, in part due to rising U.S. production, though poor compliance by some participants in the OPEC output-cap agreement has also contributed.
- The U.S. dollar fell to a 10-month low against the Chinese yuan intraday as investors continue to seek out higher-yielding currencies.
- The U.S. dollar fell 0.3% to 6.71 yuan in offshore trading, the lowest level since October.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, was flat at 86.32.
- Doubts that the Federal Reserve will raise interest rates again this year have weighed on the U.S. dollar and driven investors into riskier emerging-market currencies such as the yuan, which offer higher yields.
- The rally in the yuan came despite disappointing trade data that showed China’s export growth slowed in June.
The Australian dollar is lower against its US counterpart which has strengthened following a much-stronger-than expected US jobs opening report.
At 7.00 AEST on Wednesday, the Australian dollar was worth 79.10 US cents, down from 79.16 US cents on Tuesday.
- European equities turned positive after a damp start on Tuesday as strong gains in utilities, auto and energy stocks outweighed losses from Pandora after disappointing results. Investors pointed to strong earnings growth as the second-quarter results season powered on.
- The pan-European STOXX 600 index was up 0.2 per cent, while blue chips rose 0.4 per cent.
- Britain’s FTSE 100 was also up 0.2 per cent
- Germany’s DAX gained 0.3 per cent.
- Year-on-year earnings growth for the quarter is running at 17 per cent so far, with results in from 70 per cent of MSCI Euro zone companies.
- Some 51 per cent of companies have beaten expectations, with this figure rising to 55 per cent for the broader MSCI Europe universe.
Asian shares turned mixed on Tuesday as disappointing Chinese trade data clouded an otherwise bright outlook for global growth.
MSCI’s broadest index of Asia-Pacific shares outside Japan proved relatively resilient, inching up 0.2 per cent and back toward decade highs, while Japan’s Nikkei eased 0.3 per cent to 19,996.01 and China’s main markets dithered either side of flat.
Beijing reported exports and imports both grew much less than expected in July, seemingly breaking a run of better numbers from the Asian giant that had fuelled optimism on global growth and a rally in industrial commodity prices.
Hong Kong shares rose as strong company earnings and surging prices for steel and other building materials convinced investors that China’s economy remains solid despite weaker-than-expected trade data.
The Hang Seng index ended up 0.6 per cent at 27,854.91 points, while the China Enterprises Index gained 0.2 per cent to 11,079.79.
China stocks edged slightly higher in quiet trading as investors shrugged off data showing Chinese exports and imports grew more slowly than expected in July.
The blue-chip CSI300 index rose 0.2 per cent, to 3,732.21 points, while the Shanghai Composite Index gained 0.07 per cent, to 3,281.87 points.
The S&P/NZX 50 Index gained 0.1 per cent to 7782.72.
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