Thursday: 14th September 2017
Each Market In Focus
- The Australian market looks set to open flat after Wall Street’s key markets gave up early gains to close hardly changed albeit at record highs.
- At 7.00 AEST on Thursday, the share price futures index was up one point, or 0.02 per cent, at 5,747.
- Locally, in economic news on Thursday, the Australian Bureau of Statistics is expected to release August’s labour force data.
- Reserve Bank of Australia deputy governor Guy Debelle is slated to speak at a business workshop at King & Wood Mallesons in Sydney.
- In equities news, Myer is slates to post full-year results.
- The Australian market on Wednesday surrendered its early gains to close relatively steady with investors cautious ahead of US inflation data and Australian jobs figures out later in the week.
- The benchmark S&P/ASX 200 index fell 2.1 points, or 0.04 per cent, to 5,744.3 points.
- The broader All Ordinaries index lost 2.4 points, or also 0.04 per cent, at 5,804.0 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 edged up to a record high as gains in consumer discretionary and energy stocks offset losses in technology heavyweight Apple.
Shares of Apple dropped 0.8 per cent on Wednesday amid concerns that the company’s newly launched iPhone X is too expensive and because its availability, starting in November, was later than expected. With the widely held stock up 37 per cent so far this year, some analysts said it was time to cash in gains.
Even with Apple’s losses, the S&P 500, Dow Jones industrial average and the Nasdaq all closed at record levels, helped by other consumer stocks.
The S&P energy index rose after the International Energy Agency said that a global surplus of crude was starting to shrink.
The Dow Jones Industrial Average rose rose 0.18 per cent to 22,158.18, the S&P 500 edged up 0.08 per cent to 2498.37, and the Nasdaq Composite added 0.09 per cent to 6460.19.
Gold prices fell for a third session in a row, marking their lowest finish for the month to date as a leading dollar index strengthened, adding to its gain for the week and dulling investment demand for the precious metal.
Gold for December delivery fell $4.70, or 0.4%, to settle at $1,328 an ounce, pulling back from an intraday high above $1,340.
The settlement was the lowest since Aug. 31 and the three-session streak of declines matched the streak of consecutive losses that ended on Aug. 4, according to FactSet.
The SPDR Gold Shares ETF was down 0.6%.
- IRON ORE: $72.31 -1.20 ( October contract )
Oil prices rose to a one-month high, supported by a record drop in gasoline inventories and signs that market supply and demand are coming back into balance.
Light, sweet crude for October delivery gained $1.07, or 2.2%, at $49.30 a barrel on the New York Mercantile Exchange, closing out the third straight session of gains.
Brent, the global benchmark, settled up 89 cents, or 1.6%, to $55.16 a barrel, the highest since April 17.
On Wednesday, the International Energy Agency said global oil supplies fell for the first time in four months in August, while also revising its 2017 oil demand estimate up to 1.6 million barrels a day from its July estimate of 1.5 million.
- The U.S. dollar rose Wednesday, brushing off a weaker-than-expected inflation report ahead of key U.S. data.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, rose 0.1% to 85.18.
- The U.S. dollar has rebounded this week as tensions over North Korea’s nuclear program subside and the damage from Hurricane Irma was less severe than some had expected.
- A Labor Department report showed the producer-price index, a measure of inflation experienced by businesses, rose 0.2% in August from a month earlier. Though the increase was smaller-than-expected, it was the biggest since April.
- The report comes ahead Thursday’s closely watched consumer-price index report.
- Investors are watching the data this week for clues on the path for U.S. inflation, which has remained soft this year and spurred doubts about the path for U.S. interest-rate increases.
- Investors are pricing in a 43% chance that the Fed raises rates again this year, CME Group data shows.
- Expectations that U.S. rates will remain lower have weighed on the dollar by making U.S. assets less attractive to yield-seeking investors.
The Australian dollar is back below 80 US cents, as the greenback strengthens amid officials’ talks that US tax reform guidance is likely to be released before the end of September.
At 7.00 AEST on Thursday, the Australian dollar was worth 79.84 US cents, down from 80.28 US cents on Wednesday.
- The FTSE 100 recouped most of its losses at the close on Wednesday, as sterling gradually came off a one-year high which had hit Britain’s top share index during the morning session.
- The FTSE 100, edged down 0.28 per cent at 7,379.70 points after hitting a low of 7,336 points at the beginning of the session, as the British currency briefly surged to $US1.3329.
- European shares steadied as a global equity rally flagged, with Apple suppliers hit after the new iPhone shipping date disappointed .
- The pan-European STOXX 600 index ended flat, paring earlier losses thanks to gains in oil and banking stocks which offset the weak chipmakers and a fall in miners.
- However, Germany’s DAX gained 0.23 per cent to 12,553.57.
Asian stocks wobbled on Wednesday but still marked a 10-year peak, cheered by record highs on Wall Street, while shares of Apple’s suppliers dipped following the release of the latest iPhone.
MSCI’s broadest index of Asia-Pacific shares outside Japan was slightly lower, after earlier poking up to its highest level since October 2007.
Japan’s Nikkei stock index added 0.45 per cent to a one-month high, of 19,865.82, getting a tailwind as the yen stayed far away for its recent peaks.
Hong Kong stocks dipped, with the Hang Seng index falling 0.28 per cent, to 27,894.08, while the China Enterprises Index lost 0.5 per cent, to 11,187.07 points.
Financial shares were the biggest drag, but resource stocks remained bullish, as investors bet China’s sweeping pollution crackdown, and continued efforts to reform its bloated sector, will push commodity prices higher.
China stocks edged up to hover near 20-month highs as robust economic growth and hopes of further reforms bolster investors’ confidence, even as regulators tap the brakes on riskier types of credit.
Both the blue-chip CSI300 index up 0.12 at 3,842.61 points and the Shanghai Composite Index ended 0.14 per cent higher at 3,384.15.
Consumer and real estate firms led the gains, while banking stocks weakened.
The S&P/NZX 50 Index dropped 0.2 per cent to 7,827.43.
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