Monday: 19th December 2016
Each Market In Focus
- The Australian share market is poised to open lower, following falls on Wall Street after US investors turned to bonds with rising yields and the stronger US dollar.
- At 8.00 a.m. AEDT on Monday, the local SPI 200 futures contract was down four points, or 0.07 per cent, at 5,489 points.
- In the US, the Dow Jones Industrial Average fell 0.04 per cent close, while Nasdaq was 0.36 per cent lower.
- In local economic news, federal Treasurer Scott Morrison will release the mid-year budget review on Monday.
- The Australian share market had closed lower on Friday, following the US interest rate hike earlier in the week.
- The benchmark S&P/ASX 200 index lost 5.7 points, or 0.1 per cent, to finish at 5,532.9 points, while the broader All Ordinaries index was down 5.3 points, or 0.09 per cent, at 5,589.7 points.
- AUS Corporate Travel Record date for 1-for-21 pro-rata Management Ltd (CTD.AU) renounceable rights issue
- NZ Q4 Westpac McDermott Miller Consumer Confidence Index
- AUS Oct Australia Conference Board Leading Index
- NZ Nov BNZ – BusinessNZ Performance of Services Index (PSI)
- NZ Oct Building Consents Issued
- NZ Dec ANZ Business Outlook
- Australian Mid-year Economic and Fiscal Outlook
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. The filter uses an above 50 cent price filter, and the codes in Blue are on our watch list. ( source Metastock)
- US stocks fell on Friday, weighed by a more than four per cent drop in Oracle shares, while recently battered stocks in the real estate and utilities sectors posted the largest gains.
- Oracle dropped 4.3 per cent to $US39.10 after its adjusted revenue missed analysts’ estimates. The stock was the biggest drag on the S&P and the tech sector.
- The Dow Jones industrial average fell 8.83 points, or 0.04 per cent, to 19,843.41
- S&P 500 lost 3.96 points, or 0.18 per cent, to 2,258.07
- Nasdaq Composite dropped 19.69 points, or 0.36 per cent, to 5,437.16.
- The Dow rose for its sixth consecutive week but the S&P 500 and Nasdaq posted slight weekly declines.
- Utilities and real estate were the best-performing sectors on the S&P, in a rotation out of recent winning sectors.
- US stocks have been on the up since the November 8 presidential election, with the S&P rising 5.5 per cent on bets that president-elect Donald Trump’s expected deregulation and infrastructure spending will boost the economy.
- However, there are some concerns that the rally may have little support as policy will take time to be implemented and likely will change as it makes its way through Congress.
- The S&P 500 posted 22 new 52-week highs and one new low
- The Nasdaq Composite recorded 172 new highs and 41 new lows.
- About 10.84 billion shares changed hands in US exchanges, well up from the 7.53 billion daily average over the last 20 sessions.
- Gold prices bounced from a 10-month low Friday, as the decline prompted investors to cover short positions and look for bargains.
- Gold for February delivery settled up 0.7% at $1,137.40 a troy ounce on the Comex division of the New York Mercantile Exchange.
- Copper futures slid Friday as stocks of the industrial metal continued to accumulate in warehouses.
- Copper for March delivery settled down 1.4% at $2.5645 a pound on the Comex division of the New York Mercantile Exchange, its biggest one-day loss since Nov. 29. IRON
- ORE: $79.89 -0.06 ( December contract )
- Oil prices rose Friday amid signals that major oil producers will stick to their agreement to cut production next year and the dollar’s rally slowed.
- U.S. crude futures gained $1, or 1.96%, to settle at $51.90 a barrel on the New York Mercantile Exchange.
- Brent crude, the global oil benchmark, gained $1.19, or 2,2%, to $55.21 a barrel on London’s ICE Futures exchange.
- The U.S. dollar’s rally to a 14-year-high paused on Friday as investors took profits on the currency’s sharp rise.
- The WSJ Dollar Index slipped 0.1% to 93.08.
- The dollar fell against the euro and Japanese yen but remained higher against emerging-market currencies.
- The U.S. dollar has surged this week after the Federal Reserve signaled it could raise interest-rates three times next year instead of twice as previously expected.
- Higher rates boost the greenback by making U.S. assets more attractive. Still, some analysts say the dollar has rallied too far, too fast.
- By Further hawkish comments about hiking US interest rates from the country’s central bank have boosted the greenback against the Aussie dollar.
- The Australian dollar has fallen again as the US Federal Reserve looks to tighten policy again next year.
- European stocks climbed to an 11-month high on merger and acquisition speculation on Friday, while the dollar’s rally paused as investors adjusted their portfolios to cope with any faster-than-expected increases in US interest rate.
- European shares were 0.16 per cent higher. Merger and acquisition speculation around drug maker Actelion and insurer Generali helped the benchmark index to set an 11-month
high earlier in the session.
- The euro zone’s blue-chip Euro STOXX 50 index turned positive for the year after a two-week rally driven by a rebound in beaten-down banking shares.
- European infrastructure and commodities companies have been in demand since Trump pledged to invest in infrastructure projects. European banks have rallied on the positive dollar outlook.
- The possibility of tighter Fed monetary policy also drove the benchmark US Treasury 10-year yield to its highest in more than two years.
- In Europe, however, two-year German government bond yields dropped to record lowsafter the European Central Bank’s recent tweaks to its asset-purchase program.
- Earlier this month, the ECB said it would reconfigure its bond-buying scheme at the start of 2017, introducing changes that suggested it would focus its purchases on the short end of euro zone government bonds.
- Hong Kong stocks slipped to a 4-1/2-month low on Friday, and posted their biggest weekly fall in half a year, as investors braced for a faster pace of US interest rate rises.
- The Hang Seng index fell 0.2 per cent, to 22,020.75 points, while the China Enterprises Index lost 0.1 per cent, to 9,470.33 points.
- For the week, the benchmark lost 3.3 per cent.
- On Thursday, the market slumped in the wake of the US Federal Reserve’s quarter-pointrate hike. Although the move had been fully priced in, investors were spooked after the Fed projected three hikes next year, up from two previously, indicating a hawkish policy stance.
- Although the jitters eased on Friday, investors remained circumspect as the US dollar hovered around its 14-year high against major currencies, threatening the appeal of emerging market assets.
- Most sectors lost ground, with telecommunication and raw material shares leading the decline.
Important News Events For Today
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