Friday: 5th May 2017
Each Market In Focus
- The Australian market looks set to open lower despite gains on most major international markets, ahead of the Reserve Bank’s statement on monetary policy later in the day.
- At 7.00 a.m. AEST on Friday, the share price futures index was down eight points, or 0.14 per cent, at 5,856.
- Locally, in economic news on Friday, the Reserve Bank of Australia’s statement on monetary policy is expected, while the Ai Group’s performance of construction (PCI) index for month just ended is also scheduled for release.
- The Australian Competition and Consumer Commission is expected to announce its decision on the regulation of mobile roaming charges, which could deliver a major blow for Australia’s biggest telecommunications companies, Telstra and Optus.
- In equities news, Macquarie Group is slated to post full-year results while Woodside Petroleum has its annual general meeting in Perth.
- The Australian market on Thursday for a third straight session as the big banks continue to slide.
- The benchmark S&P/ASX200 index lost 15.9 points, or 0.27 per cent, to 5,876.4 points.
- The broader All Ordinaries index fell 15.4 points, or 0.26 per cent, to 5,904.5 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 has ended flat as a steep fall for the energy sector countered some solid earnings reports, with major stock indexes closing little changed after the US House of Representatives passed a healthcare overhaul.
- The House on Thursday afternoon narrowly voted to repeal major portions of the 2010 Affordable Care Act, known as Obamacare, and replace it with a Republican healthcare plan, sending it to the Senate for consideration.
- The bill’s passage comes after House Republicans pulled healthcare legislation earlier this year in a setback, raising questions among investors about President Donald Trump’s ability to enact his agenda.
- The benchmark S&P 500 has gained 11.7 per cent since Trump’s election, fuelled by his plans for tax cuts, infrastructure spending and deregulation.
- The Dow Jones Industrial Average fell 0.03 per cent to 20,951.47.
- The S&P 500 gained 0.06 per cent to 2,389.52.
- The Nasdaq Composite added 0.05 per cent to 6,075.34.
Gold finished at its lowest price in seven weeks, pressured by a report showing a slowdown in demand for the precious metal a day after the Federal Reserve signaled confidence in the U.S. economy.
June gold fell $19.90, or 1.6%, to settle at $1,228.60 an ounce, the lowest close since March 16. July silver also lost 24.3 cents, or 1.5%, to $16.303 an ounce, marking their lowest finish of this year.
- IRON ORE: $64.00 -3.45 ( May contract )
- Oil prices fell to a five-month low, as investors have become increasingly skeptical of OPEC’s abilities to ease a global supply glut amid elevated U.S. crude production and inventories.
- Light, sweet crude for June delivery fell $2.30, or 4.8%, to $45.52 a barrel on the New York Mercantile Exchange, closing at the lowest level since Nov. 29. Brent, the global oil benchmark, fell $2.41, or 4.7%, to $48.38 a barrel.
- The recent selloff in oil has erased most of the gains made after the Organization of the Petroleum Exporting Countries agreed to cut production in November.
- Other non-OPEC producers, including Russia, joined the deal late last year, bringing expected cuts to about 1.8 million barrels a day.
- The U.S. dollar fell as investors digested mixed U.S. economic data and a slide in commodity prices.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, fell 0.3% to 89.81.
- The U.S. dollar rose against emerging-market currencies but fell nearly 1% against the euro.
- The U.S. dollar had jumped a day earlier after the Federal Reserve said it believes a recent slowdown in economic growth is “transitory” at the close of its latest meeting. The upbeat statement helped fuel bets that the Fed will raise rates at its June meeting, which would likely boost the dollar by making U.S. assets more attractive to yield-seeking investors.
- U.S. economic data were mixed. The number of Americans applying for first-time unemployment benefits fell sharply last week to one of the lowest levels since the 1970s, while the U.S. trade deficit narrowed in March. Reports on U.S. factory orders and productivity were weaker-than-expected.
- The data comes ahead of Friday’s U.S. non-farm payrolls report. A strong reading on that closely watched data would further bolster the Fed’s case for raising rates and support the dollar.
- The Australian dollar is higher against its US counterpart as the greenback is sold off.
- At 7.00 a.m. AEST on Friday, the Australian dollar was worth 74.11 US cents, up from 74.03 US cents on Thursday.
- European shares powered ahead on Thursday as earnings, economic data and politics aligned to boost the market to further highs.
- The pan-European STOXX 600 index rose 0.7 per cent, holding at 20-month highs, while German blue chips soared to an all-time high and France’s CAC climbed to its highest in more than nine years.
- The DAX gained 0.96 per cent to 12,647.78. Also supporting the region’s stocks were signs that centrist Emmanuel Macron is set for victory in France’s presidential election on Sunday, and a survey showing euro zone businesses started the second quarter by turning out their best performance in six years.
- British blue-chip stocks rose slightly but lagged European peers, with miners falling and retailer Next slumping as a difficult consumer environment bit into its profits.
- The FTSE inched up 0.19 per cent to 7,248.10.
- Hong Kong stocks slipped slightly on Thursday, as a jump in index heavyweight HSBC Holdings largely counterbalanced any bearish sentiment stemming from the US Federal Reserve’s hawkish policy statement.
- The Hang Seng index fell 0.05 per cent, to 24,683.88, while the China Enterprises Index lost 0.8 per cent, to 10,088.02 points.
- The Fed kept its benchmark interest rate steady as expected, but downplayed weak first-quarter economic growth and emphasised the strength of the labour market, a sign it was still on track for two more interest rate increases this year.
- The market was sluggish in the morning session, but recovered much of the losses by the close as HSBC jumped more than 3 per cent in late trading, after posting a better-than-expected first-quarter profit and capital position.
- China stocks extended losses on Thursday to close at three-month lows, after a survey showing softer services sector activity raised concerns over growing economic risks.
- The blue-chip CSI300 index fell 0.26 per cent, to 3,404.39 points, while the Shanghai Composite Index closed down 0.25 per cent at 3,127.37 points.
- Growth in China’s services sector cooled to its slowest in almost a year in April as fears of slower economic growth dented business confidence, even as cost pressures eased, a private survey showed on Thursday.
- The findings echoed a similar trend of slowing growth seen in China’s official factory and services surveys on Sunday.
- The S&P/NZX 50 Index fell 27.43 points, or 0.4 per cent, to 7378.41.
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