Friday: 19th May 2017
Each Market In Focus
- The Australian share market is set to open flat, with investors likely uncertain about the direction despite a strong lead from Wall Street.
- At 7.00 a.m. AEST on Friday, the local share price futures index was down 3 points, or 0.05 per cent, at 5,727.
- The market gains were accompanied by a rebound in the US dollar, leading to the Aussie dollar paring back Thursday’s gains.
- No major economic news is expected in the local market.
- In equities, Papua New Guinea-focused oil and gas producer Oil Search will hold its annual general meeting on Friday.
- On Thursday, the Australian share market fell for a second straight day as political uncertainty around US President Donald Trump soured risk appetite.
- The benchmark S&P/ASX200 dropped 47.7 points, or 0.82 per cent, to 5,738.3 points, while the broader All Ordinaries index dropped 45.7 points, or 0.79 per cent, to 5,775.5 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 rebounded on Thursday from its biggest selloff in more than eight months with help from a move to loosen internet regulations and strong economic data.
- Investors were still watching Washington closely after reports the U.S. President tried to interfere with an investigation into former National Security Adviser Michael Flynn’s ties with Russia.
- Investors were likely relieved, she said, by last night’s appointment of former FBI chief Robert Mueller to investigate alleged Russian interference in the election and possible collusion between Trump’s campaign and Moscow.
- Investors are monitoring events that could help or hurt Trump’s ability to implement proposals such as tax reform and deregulation. At least some of the stock market’s post-election rally has been thanks to those proposals.
- The Dow Jones Industrial Average rose 56.09 points, or 0.27 per cent, to 20,663.02
- The S&P 500 gained 8.69 points, or 0.37 per cent, to 2,365.72.
- The Nasdaq Composite added 43.89 points, or 0.73 per cent, to 6,055.13.
- Gold prices reversed gains, as the dollar strengthened.
- Gold for June delivery closed down 0.5% at $1,252.80 a troy ounce.
- July silver was down 1.4% at $16.67 troy ounce, platinum was down 1% at $936.80 a troy ounce, and palladium fell 1.5% to $765.45 a troy ounce.
- Copper for July delivery closed down 0.6% at $2.5315 a pound on the Comex division of the New York Mercantile Exchange.
- Iron Ore: 62.15 – 0.45 (May Contract)
- Oil prices settled at a three-week high as investors weighed declining crude stockpiles in the U.S. against signs of a broader oversupplied market.
- Light, sweet crude for June delivery settled up 28 cents, or 0.6%, to $49.35 a barrel on the New York Mercantile Exchange, closing at the highest level since April 26.
- Brent, the global benchmark, settled up 30 cents, or 0.6%, at $52.51 a barrel.
- Wednesday data from the U.S. Energy Information Administration showed that the amount of crude, gasoline and diesel fuel in storage declined in the week ended Friday.
- While the 1.75 million barrel decline in crude stockpiles fell short of analyst estimates for a 2.2 million barrel draw, it was a much improved sign compared to the American Petroleum Institute’s estimate of a weekly build.
The U.S. dollar rebounded, while the Brazilian real and other emerging-market currencies tumbled as political uncertainty continued to rattle investors.
The WSJ Dollar Index, which measures the U.S. currency against 16 others, rose 0.4% to 89.21 as the dollar rose against the Japanese yen, euro and many emerging market currencies.
The index had tumbled 0.7% on Wednesday, nearly wiping out its post-election rally, as investors worried that political turbulence surrounding the Trump administration will compromise its tax overhaul and fiscal-spending proposals.
Those plans were expected to boost U.S. economic growth and helped propel the dollar to a 14-year-high after the election.
Markets have been rattled by reports that President Donald Trump shared sensitive information with Russian officials and asked then-FBI Director James Comey to back off an investigation of former national security adviser Michael Flynn.
- The Australian dollar has slipped back against the US dollar, which rebounded along with the major US share markets following appointment of a special counsel to head a key federal investigation in the US.
- At 7.00 a.m. AEST on Friday, the local unit was worth 74.19 US cents, down from 74.47 US cents on Thursday.
- European shares fell on Thursday, but ended off lows as jitters over political turmoil in the United States abated, while stocks exposed to Brazil were hit after a scandal embroiled the country’s president.
- The STOXX 600 index ended down 0.5 per cent at 389.19 points after falling as much as 1.2 per cent earlier in the day to its lowest in three weeks.
- On Wednesday, the pan-European benchmark saw its biggest one-day drop in eight months on worries about U.S. President Donald Trump’s ability to enact stimulus policies after reports he may have tried to interfere with a federal investigation.
- But concerns about political stability appeared to ease as strong U.S. economic data helped Wall Street turn into positive territory.
- British blue chips suffered their worst day since the end of April on Thursday, but came off lows as pressure triggered by uncertainty over U.S. President Donald Trump’s stimulus agenda eased.
- The mostly foreign-earning FTSE 100 index ended down 0.9 per cent, underperforming the broader European market as the pound strengthened after data showed consumers are maintaining spending despite inflation worries.
- China’s main stock indexes followed other Asian markets lower on Thursday as political turmoil in Washington knocked Wall Street and dented risk appetite in global markets.
- The blue-chip CSI300 index fell 0.3 per cent, to 3,398.11 points, while the Shanghai Composite Index lost 0.5 per cent to 3,090.14 points.
- Equities in Asia took cues from Wall Street, where the Dow and S&P 500 both sank about 1.8 per cent overnight.
- The Hang Seng index fell 0.6 per cent, to 25,136.52, while the China Enterprises Index lost 1.1 per cent, to 10,271.35 points.
- MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.5 per cent.
- Japan’s Nikkei shed 1.4 per cent, Australian shares lost 1.1 per cent and South Korea’s KOSPI declined 0.4 per cent.
- Ongoing jitters about US politics pushed New Zealand stocks lower on Thursday as investors took risk off the table. The S&P/NZX 50 Index fell 51 points, or 0.7 per cent, to 7371.76.
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