Friday: 2nd June 2017
Each Market In Focus
The Australian market looks set to open higher, following the lead of Wall Street where each of the major indexes notched record highs after a batch of economic data suggested the US economy was picking up speed.
At 7.00 a.m. AEST on Friday, the share price futures index was up 17 points, or 0.3 per cent, at 5,770.
- Locally, in economic news on Friday, April’s new home sales data are due to be released.
- No major equities news is expected.
- Meanwhile the Governance Institute of Australia’a Corporate Governance Forum finishes up in Brisbane.
- The Australian market on Thursday closed higher after a choppy day of trade on the back of upbeat local data and negative Chinese factory figures.
- The benchmark S&P/ASX200 index rose 13.5 points, or 0.24 per cent, at 5,738.1 points.
- The broader All Ordinaries index gained 11.2 points, or 0.19 per cent, at 5,772.5 points.
- Meanwhile, the Australian dollar is sharply lower against a strengthening greenback after local capital expenditure figures and Chinese manufacturing data disappointed.
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 advanced, with each of the major US indexes notching record highs, after a batch of economic data suggested the economy was picking up speed.
- The ADP private sector employment report showed 253,000 jobs were added in May, well above the 185,000 estimated by economists polled by Reuters.
- The report could signal a strong government payrolls report on Friday that includes hiring in both public and private sectors, which would cement expectations for an interest rate hike by the Federal Reserve in two weeks.
- A separate report showed factory activity ticked up in May after two straight months of slowing.
- The Dow Jones Industrial Average rose 0.65 per cent, to 21,144.18
- The S&P 500 gained 0.76 per cent to 2,430.06
- The Nasdaq Composite added 0.78 per cent to 6,246.83.
- Meanwhile, gold prices fell after stronger-than-expected U.S. payroll data bolstered the case for the Federal Reserve to raise interest rates later this month.
- Gold for August delivery closed down 0.4% at $1,270.10 a troy ounce on the Comex division of the New York Mercantile Exchange.
- Copper prices rose 0.3% to $2.5875 a pound.
- IRON ORE: $55.39 +0.36 ( June contract )
- U.S. oil prices rebounded slightly after another drop in U.S. crude stocks, though most of the gains got erased in a late-day selloff.
- U.S. storage levels fell by nearly three times as much as expected in the week ended Friday, according to data released by the U.S. Energy Information Administration.
- Crude inventories shrank by 6.4 million barrels and gasoline by 2.9 million.
Prices rose immediately after the data release. Light, sweet crude for July settled up 4 cents, or 0.1%, at $48.36 a barrel on the New York Mercantile Exchange.
Brent lost 13 cents, or 0.3%, to $50.63 a barrel on ICE Futures Europe.
- The U.S. dollar rallied after a better-than-expected monthly employment report boosted confidence in the U.S. labor market.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, rose 0.3% to 88.74.
- The U.S. dollar rose 0.5% against the Japanese yen but was mixed against emerging-market currencies.
- The Australian dollar is sharply lower against its US counterpart, dropping below 74 US cents after local and Chinese economic data disappointed.
- At 07.00 AEST on Friday, the Australian dollar was worth 73.76 US cents, down from 74.07 US cents on Thursday.
- European shares inched up on Thursday, with blue chips in Milan taking the lead after better-than-expected Italian economic growth helped markets shrug off political worries.
- Italy’s economy grew 0.4 p in the first quarter thanks to firm domestic demand, the statistics bureau said, sharply raising a preliminary estimate and improving prospects for the year.
- The pan-European STOXX 600 index gained 0.4 per cent, while Italy’s FTSE MIB rose 1 per cent after the data prompted renewed interest in Italian stocks as investors seemed to recover from rattled nerves earlier this week over a possible early election and the rescue of two ailing regional banks.
- Praise heaped on Nokia by analysts boosted the phone company and helped push France’s CAC 40 up 0.8 per cent.
- Germany’s DAX lifted 0.40 per cent to 12,664.92 while London’s FTSE100 gained 32 per cent to close at 7,543.77.
- Conflicting signals on the health of China’s manufacturing sector kept most Asian stock markets in check.
- MSCI’s broadest index of Asia-Pacific shares outside Japan was flat following four sessions of losses as investors took profits after stocks hit a two-year high last week and as economic and geopolitical concerns continued to weigh on sentiment.
- But Japan’s Nikkei advanced 1.07 per cent after data showed recurring first-quarter corporate profits were the highest on record for the January to March period.
- An increase in capital expenditure in the first quarter added to a raft of recent data pointing to economic expansion, while manufacturing growth in Japan also rose to a three-month high, according to a business survey.
- China’s Shanghai Composite Index fell as much as 0.47 per cent after a private survey showed the country’s manufacturing activity contracted in May for the first time in 11 months, contrasting with official data on Wednesday which suggested growth remained steady.
- The blue-chip CSI300 index finished 0.14 per cent higher at 3,497.74 points.
- Hong Kong’s benchmark stock index finished at a 23-month high, bolstered by property shares as Chinese money flowed steadily into the city’s market.
- The Hang Seng index ended up 0.58 per cent at 25,809.22, while the China Enterprises Index gained 0.2 per cent, to 10,619.88 points.
- The S&P/NZX 50 Index gained 0.4 per cent to 7450.9.
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