Thursday: 1st June 2017
Each Market In Focus
- The Australian market looks set to open lower after US and European markets closed little changed but commodity prices fell.
- At 8.00 a.m. AEST on Thursday, the share price futures index was down eight points, or 0.14 per cent, at 5,732.
- In the US, financials dropped with key banks blaming lower volatility for revenue falls.
- The Dow Jones Industrial Average fell 0.1 per cent, the S&P 500 lost 0.05 per cent while the Nasdaq dropped 0.08 per cent.
- It was a similar story in Europe where London’s FTSE 100 lost 0.09 per cent but Germany’s DAX gained 0.13 per cent although fresh political uncertainty and a lack of catalysts following a surprisingly strong earnings season say investors lock in gains.
- Locally, in economic news on Tuesday, the Australian Bureau of Statistics releases April’s retail trade figures and private capital expenditure and expected expenditure data for the March quarter.
- May’s manufacturing data is also expected.
- In equities news, BHP Billiton Chief Commercial Officer Arnoud Balhuizen, who took over the role in March, is slate to speak at the Melbourne Mining Club.
- The Australian market on Wednesday closed little changed as gains by banks and property developers were almost outweighed by falls by miners and energy companies.
- The benchmark S&P/ASX200 index rose 6.7 points, or 0.12 per cent, to 5,724.6 points.
- The broader All Ordinaries index added 5.3 points, or 0.09 per cent, to 5,761.3 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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- US stocks have closed little changed as financials dropped after JPMorgan and Bank of America warned of revenue weakness, offsetting gains in defensive plays.
- JPMorgan blamed lower volatility for a 15 per cent decline in trading revenue in the current quarter compared with last year, while Bank of America said trading revenue in the second quarter was on track to be 10 to 12 per cent lower than last year.
- Measures of market volatility are at rock-bottom, hitting trading desks at big banks.
- The US stock market’s main gauge of investor anxiety closed at its lowest level in over two decades on May 8 and has not topped its long-term average of 20 since November.
- It did, however, hit a seven-day high of 11.30 on Wednesday.
- The Dow Jones Industrial Average fell 0.1 per cent to 21,008.65,
- The S&P 500 lost 0.05 per cent to 2,411.81
- The Nasdaq Composite dropped 0.08 per cent to 6,198.52.
- Gold prices reached one-month highs, supported by a weaker U.S. dollar and buying out of Asia.
- IRON ORE: $55.03 -2.82 ( June contract )
- Oil prices tumbled to three-week lows, extending their recent slide as investors remained skeptical that production cuts by major producers will make a dent in global crude stocks.
- U.S. crude futures fell $1.34, or 2.7%, to $48.32 a barrel on the New York Mercantile Exchange — their lowest since. Brent, the global benchmark, fell $1.53, or about 2.95%, to $50.31 a barrel on ICE Futures Europe.
- Brent’s 2.75% decline during May marked its fifth straight month of losses. U.S. crude futures ended the month down about 2.05%.
- The sharp downturn follows last week’s decision by the Organization of the Petroleum Exporting Countries and other producers like Russia to extend a joint supply cut through March 2018.
- The U.S. dollar weakened against its major rivals on Wednesday, while the pound was volatile following conflicting reports about the support for U.K. Prime Minister Theresa May’s Conservative Party in the June 8 general election.
- The U.S. dollar index, which measures the currency against a half-dozen rivals, fell 0.3%, extending its recent weakness. The index is on track for a weak month, having lost 2.1% thus far in May.
- The WSJ Dollar, which looks at the buck against a wider basket of other currencies, fell 0.2%.
- The pound swung between sharp losses and break-even trade after an estimate from a polling company indicated the Tories could lose its parliamentary majority in the vote next week.
- The Australian dollar is lower against its US counterpart after crude oil and iron ore fell three per cent.
- At 7.00 a.m. AEST on Thursday, the Australian dollar was worth 74.32 US cents, down from 74.50 US cents on Wednesday.
- European shares posted their fourth straight month of gains though fresh political worries and the lack of new catalysts following a surprisingly strong earnings season spurred investors to lock in some profits in banks and commodities-related stocks.
- The pan-European STOXX 600 index ended the day little changed and up 0.9 per cent in May, the slimmest rise since the streak of monthly gains began in February.
- Robust corporate profits, relatively cheap valuations and diminishing political risks have lured investors back into regional stocks.
- However, with valuations now back above historical averages, jitters over early autumn elections in Italy and the looming election in Britain has soured sentiment.
- Germany’s DAX gained 0.13 per cent on Wednesday to 12,615.06.
- In Britain, the FTSE ended the day little changed but posted its best month of the year, helped by a weaker pound.
- The UK blue chip index, dominated by dividend-paying exporters whose profits benefit from a weak local currency, hit a record high earlier in Wednesday’s session but lost those gains to finish the day slightly lower.
- Those moves closely tracked sterling which was knocked around by various polls that pointed to a range of possible outcomes — from a hung parliament to a solid Theresa May-led Conservative win.
- The FTSE 100 closed down 0.09 per cent at 7,519.95.
- Asian stocks held steady on Wednesday, capping a fifth consecutive month of gains as data showed China’s factory activity grew at a steady clip in May, reassuring investors worried about a slowdown in the world’s second-biggest economy.
- MSCI’s broadest index of Asia-Pacific shares outside Japan was broadly flat on Wednesday as Chinese stocks ran out of steam after an early run higher. Japan’s Nikkei 225 edged 0.14 per cent lower to 19,650.57.
- Activity in China’s manufacturing sector grew at the same pace in May as in April, with a headline reading of 51.2, official data showed, in a reassuring sign the world’s second-biggest economy is not losing too much steam after a solid first quarter performance.
- Analysts had seen a slight slowing to 51.0. Growth in China’s steel industry rebounded to the strongest level in a year, supported by an increase in new orders, according to an industry survey, buoying prices of iron ore and steel rebar futures in Shanghai.
- Hong Kong stocks ended roughly flat, capping a fifth month of gains as steady inflows of Chinese money helped push the main share index to its highest in nearly 23 months.
- Both the Hang Seng index and the China Enterprises Index fell 0.2 per cent, to 25,660.65 and 10,602.97 points, respectively.
- For the month, the Hang Seng was up 4.2 per cent, while the HSCE gained 3.7 per cent.
- China stocks ended higher but the bulk of early gains were erased as investors sought to weigh the impact of new trading rules on bulk selling.
- The blue-chip CSI300 index closed up 0.36 per cent, at 3,492.88 points, while the Shanghai Composite Index added 0.23 per cent to 3,117.18 points.
- During May, the SSEC lost 1.2 per cent, its third straight monthly loss, while the CSI300 gained 1.6 per cent.
- The S&P/NZX50 Index rose 0.1 per cent to 7418.9.
Important News Events For Today
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