Monday: 8th May 2017
Each Market In Focus
The Australian market looks set to open almost one per cent higher following strong performances on US and European markets in their last trading sessions.
At 7.00 a.m. AEST on Monday, the share price futures index was up 55 points, or 0.95 per cent, at 5,872.
Locally, in major economic news on Monday, the Australian Bureau of Statistics releases March building approvals figures, the ANZ job advertisement series is due out, as is CoreLogic’s capital city house prices for the week just ended.
In equities news, Westpac will post its first-half results, the last of the big four banks to do so.
Analysts forecast cash profit to increase by about three per cent to roughly $4 billion.
Meanwhile, investors will watch for any further developments after Fairfax Media on Sunday confirmed private equity company TPG Capital had made an unsolicited approach to buy its three key metro newspapers and online real estate arm Domain.
The Australian market on Friday closed lower for a fourth consecutive session on the back of sliding commodity prices with an iron ore slump weighing on the local currency.
The benchmark S&P/ASX200 index fell 39.8 points, or 0.68 per cent, to 5,836.6 points.
The broader All Ordinaries index lost 40.7 points, or 0.69 per cent, to 5,863.8 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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- Major US stock indexes have gained with the S&P 500 ending at a record high close, as energy stocks bounced back along with oil prices and US job growth rebounded.
- US nonfarm payrolls surged by 211,000 jobs in April after a paltry gain of 79,000 in March, and the unemployment rate dropped to 4.4 per cent, near a 10-year low.
- Energy was the best performing sector, rising 1.6 per cent, after falling sharply a day earlier. Oil prices rebounded following assurances by Saudi Arabia that Russia is ready to join OPEC in extending supply cuts.
- The Dow Jones Industrial Average rose 0.26 per cent to 21,006.94, the S&P 500 gained or 0.41 per cent to 2,399.29 and the Nasdaq Composite added 0.42 per cent to 6,100.76.
- All three indexes posted gains for a third straight week.
- Gold prices fell to a one-month low after U.S. jobs data showed stronger-than-expected employment in April.
- IRON ORE: $62.49 -1.39 ( May contract )
- Crude futures bounced back from five-month lows, following a week of steep losses globally as investors continue to worry about brimming crude inventories.
- Even with Friday’s rebound, prices have tumbled 6.3%% this week, falling to their lowest levels since November, when the Organization of the Petroleum Exporting Countries and other big oil producers agreed to cut output for six months. Most of the losses came after data on Wednesday showed a smaller-than-expected fall in U.S. oil inventories and rising production.
U.S. crude futures recently settled up 70 cents, or 1.54%, at $46.22 a barrel on the New York Mercantile Exchange. Brent crude, the global oil benchmark, rose 72 cents, or 1.49% to $49.10 a barrel on London’s ICE Futures exchange.
For much of this year, production cuts by the major oil-producing nations have kept prices aloft while growing U.S. output have limited their rise, keeping oil prices buffeted within a narrow range.
But prices have been swinging as investors’ confidence in OPEC-led production cuts has waned.
- The euro rose against the U.S. dollar in early Asia-Pacific trading Sunday as initial exit polls showed centrist former economy minister Emmanuel Macron emerging as the winner of France’s presidential election.
- The U.S. dollar pared gains after a report showed U.S. hiring rebounded in April but the pace of wage growth slowed.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, slipped 0.1% to 89.70. The index had been up 0.1% before the report.
- The Labor Department’s monthly report showed nonfarm payrolls rose by a seasonally adjusted 211,000 in April from the prior month, while the unemployment rate fell to its lowest level since May 2007.
- Analysts said a slowdown in wage growth weighed on the dollar. Average hourly earnings for private-sector workers rose 2.5% in April from the prior year, marking a slowdown from growth of nearly 3% in December.
- The report shows there’s only modest evidence that the low unemployment rate is putting upward pressure on inflation. Higher inflation would bolster the Fed’s case for raising interest-rates more aggressively.
- Speeches from Fed officials including Chairwoman Janet Yellen on Friday offered few clues on the outlook for higher rates. The central bank left rates unchanged at the close of its May meeting on Wednesday but said a recent slowdown in growth is likely”transitory.”
- Fed-funds futures, used by investors to bet on the U.S. interest-rate outlook, show a 78.5% chance that the Fed raises rates at its next meeting in June, according to CME Group data. Higher rates typically support the dollar by making U.S. assets more attractive to yield-seeking investors.
- In other currencies, the euro rose 0.1% against the dollar to its highest level since November ahead of this weekend’s French election.
- The Australian dollar is up against its US counterpart which has slipped despite stronger-than-expected US jobs figures..
- At 7.00 A.M. AEST on Monday, the Australian dollar was worth 74.14 US cents, up from 73.86 US cents on Friday.
- European bourses flinched, caught off guard as a slump in oil prices to a near-six-month low rattled investors and prompted a rally in safe-haven assets.
- European markets stabilised when Saudi Arabia’s OPEC chief hit the wires in European hours, saying there was a growing consensus among oil pumping countries that they needed to continue to “rebalance” the market.
- Germany’s DAX closed 0.55 per cent higher at 12,716.89.
- Robust earnings and strength in resources-linked stocks helped Britain’s top share index rise, sealing its best week in two months, with Pearson the standout performer.
- Britain’s blue chip FTSE 100 index rose 0.7 per cent to 7,297.43, reversing earlier losses as the oil price paused its slide, supporting mining firms and energy stocks.
- A series of well-received updates underpinned gains as the earnings season steamed ahead.
- Education publisher Pearson was the top riser, soaring 12.4 per cent following its first-quarter update.
- Hong Kong stocks posted their biggest daily percentage decline in two weeks on Friday as resources shares tumbled on sharply weaker oil and commodity prices.
- Sentiment was not helped by a bearish stock market in China, where main indexes fell to three-month lows amid lingering worries about economic growth and tighter regulations.
- The Hang Seng index fell 0.8 per cent, to 24,476.35, while the China Enterprises Index lost 1.6 per cent to 9,926.26 points.
- China stocks hit fresh three-month lows at midday on Friday, as investor concerns about tighter financial regulations weighed on investor sentiment while sharp falls in oil and commodities prices hit and resources shares.
- The CSI300 index fell 0.6 per cent, to 3,382.55 points, while the Shanghai Composite Index lost 0.7 per cent, to 3,106.10 points.
- China’s local banking regulators are conducting examinations on capital rotation, circumvention of arbitrage regulations and illegal transactions, the official Shanghai Securities News reported on Friday, citing insiders at the banks.
- The move is one of the latest measures by regulators to contain financial risks in the nation’s banking system. Tokyo was closed.
- The S&P/NZX 50 index fell 0.2 per cent to 7365.50.
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