Monday: 31st July 2017
Each Market In Focus
- The Australian market looks set to open comfortably higher, despite Wall Street’s key indexes mainly ending negatively.
- At 7.00 AEST on Monday, the share price futures index was up 24 points, or 0.43 per cent, at 5,658.
- Locally, in economic news on Monday, the CoreLogic capital city house prices survey for the week just ended is due out.
- In equities, Origin Energy is expected to release a quarterly production report.
- The Australian market on Friday closed sharply lower amid a broad sell-off, including heavy losses from the big four banks and health stocks as investors appeared to fret about the US economy.
- The benchmark S&P/ASX200 index was down 82.2 points, or 1.42 per cent, at 5,702.8 points.
- The broader All Ordinaries index was down 77 points, or 1.32 per cent, at 5,755.2 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
Scans Powered by Metastock. Click here for more information
The S&P 500 has slipped on negative reactions to earnings reports from high-profile names such as Amazon, Exxon and Starbucks and a drop in shares of tobacco companies.
The Dow industrials, however, set a record high, buoyed by Chevron after the energy company’s results.
Despite Friday’s share reactions, results overall have come in better than expected for the second quarter and stocks are trading near record highs.
More than halfway through reporting season, S&P 500 companies are on track to increase earnings by 10.8 per cent, according to Thomson Reuters.
Investors were also digesting data showing the US economy accelerated in the second quarter as consumers ramped up spending and businesses invested more on equipment.
The Dow Jones Industrial Average rose 0.15 per cent to 21,830.31
The S&P 500 lost 0.13 per cent to 2472.1.
The Nasdaq Composite dropped 0.12 per cent to 6374.68.
- Copper for September delivery settled down 0.1% at $2.8750 a pound in New York.
- Gold prices gained for the third consecutive week on Friday, boosted by slower-than-expected U.S. economic growth and increased worries over political risks.
- Futures for December delivery settled up 0.7% at $1,275.50 a troy ounce on the Comex division of the New York Mercantile Exchange, trading at the highest level since June 14.
- IRON ORE: $78.89 -0.18( December contract )
Oil prices rose every day this week, their best since December, as renewed optimism about falling supply and rising demand refuel a rally.
U.S. crude is bumping up against $50 for the first time in almost two months, retracing about half of the ground it lost during an unexpected selloff that started in March.
Traders and analysts had widely predicted a rally toward $60 in part from continued demand growth and a new deal from exporters to cut output; these same factors are pushing oil higher now, though several months later than many expected.
Light, sweet crude for September delivery settled up 67 cents, or 1.4%, at $49.71 a barrel on the New York Mercantile Exchange.
Brent crude, the global benchmark, gained $1.03, or 2%, to $52.52 a barrel on ICE Futures Europe. Both have had gains in 12 of the last 15 sessions, hitting their highest settlements since the last week of May.
U.S. crude gained 8.6% and Brent gained 9.3% for the week.
That is their biggest weekly gain since the week ended Dec. 2, when the Organization of the Petroleum Exporting Countries announced a deal that would eventually include Russia and other major exporters and aim to cut output by around 1.8 million barrels a day.
- The U.S. dollar’s slide intensified Friday after data showed U.S. inflation remains tepid despite a pickup in economic growth.
- The U.S. Dollar Index, which measures the U.S. currency against 16 others, fell 0.4% to 86.10, its lowest closing level since last September.
- The U.S. dollar fell 0.6% against the euro and 0.5% against the Japanese yen.
- The Commerce Department said gross domestic product, a broad measure of goods and services produced in the U.S., rose at a 2.6% annual rate in the April to June period.
- Data Friday also indicated U.S. inflation remains tepid, a potential obstacle for the Federal Reserve’s plans to raise interest rates.
- The price index for personal-consumption expenditures–the Fed’s preferred inflation gauge-rose at a rate of 0.3% in the second quarter.
- Core prices, which exclude volatile food and energy costs, increased 0.9%. Inflation has consistently undershot the Fed’s 2% goal in recent years.
- Separately, a Labor Department report showed the employment-cost index for civilian workers, a broad gauge of U.S. wages and benefits, advanced by a seasonally adjusted 0.5% in the second quarter, below the 0.6% rate economists had forecast.
- The Australian dollar is steady against the greenback which has slipped on uninspiring US growth and continued political uncertainty.
- At 7.00 AEST on Monday, the Australian dollar was worth 79.81 US cents, from 79.80 US cents on Friday.
- Britain’s major share index on Friday posted its first weekly loss since June after a late-session slump in tobacco stocks, falls among banking stocks and a disappointing update from telecoms firm BT.
- The FTSE 100 ended the session 1 per cent lower at 7,368.37 points, in line with a broader decline in the European market.
- Shares in British American Tobacco sank as much as 13.7 per cent, though recovered to end 6.8 per cent lower, after the US Food and Drug Administration said it aimed to cut nicotine in cigarettes to non-addictive levels.
- Shares in BAT’s peer Imperial Brands also dropped nearly 4 per cent, its worst day since November 2016.
- Top faller telecoms operator BT lost 4.3 per cent after its first quarter profit was dented by settlements for an Italian accounting scandal, with government regulation also a concern for investors.
- An earnings miss by Amazon that hit US technology stocks also rippled through markets with European tech shares opening sharply lower. MSCI’s 47-country All World share index was down 0.3 per cent, while the European
- STOXX 600 index was down 1.2 per cent. Germany’s DAX lost 0.4 per cent to close at 12,162.70.
- Asian stock markets sagged after US tech shares retreated from recent rallies, though optimism about US corporate earnings and the global economy underpinned overall sentiment.
- MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.1 per cent, erasing almost all of its weekly gains, with Samsung Electric, Asia’s largest company by market capitalisation, dropping 4.4 per cent.
- Japan’s Nikkei shed 0.6 per cent to 19,959.84.
- Hong Kong’s Hang Seng index also fell 0.6 per cent, to 26,979.39 points, with losses centred in energy, technology and financial stocks.
- However, the benchmark posted gains for a third straight week, up a little over 1 per cent.
- The Hong Kong China Enterprises Index was 0.9 per cent lower at 10,756.08 on Friday.
- For the week, it shed 0.3 per cent.
- China stocks ended higher, with the Shanghai benchmark index recording the sixth consecutive week of gains, bolstered by recent solid economic data and the country’s pledge to persist with supply-side reforms.
- The blue-chip CSI300 index rose 0.3 per cent, to 3,721.89 points, while the Shanghai Composite Index added 0.1 per cent to 3,253.24 points.
- For the week, CSI300 was down 0.2 per cent, while SSEC gained 0.5 per cent.
- The S&P/NZX 50 Index dropped 0.9 per cent to 7639.51.
Important News Events For Today
“Be brave enough to live life creatively. The creative place where no one else has ever been”. – Alan Alda
*Now you know everything.*