Thursday: 20th April 2017
Each Market In Focus
- The Australian market looks set to open lower after Wall Street mainly fell as investors digested the latest round of company earnings, and a drop in oil prices weighed on the energy sector.
- At 8.00 AEST on Thursday, the share price futures index was down 13 points, or 0.22 per cent, at 5,784.
- The BSI rose 0.6 per cent in trend terms in March, above the long-term average monthly rate of 0.2 per cent, and strongest monthly increase since December 2015.
- But the report suggests there’s several factors that could slow spending in the coming months.
- In equities news, Woodside Petroleum, Rio Tinto and Evolution Mining are expected to release quarterly production reports while Australian Pharmaceutical Industries is slated to release half-year results.
- The Australian market on Wednesday fell for a third straight session, pulled back by weakness in the financial and energy sectors as geopolitical concerns continue to weigh on investor sentiment..
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)
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The S&P 500 and Dow have closed lower and the Nasdaq has advanced as investors digest the latest round of earnings, while a drop in oil prices weighs on the energy sector.
IBM sank 4.9 per cent to $US161.69 after the company reported a bigger-than-expected decline in revenue for the first time in five quarters. The stock was the biggest drag on the S&P and the price-weighted Dow.
The energy sector slumped 1.4 per cent for its fifth drop in six sessions as oil prices settled nearly 4 per cent lower.
US data showed a counter-seasonal build in petrol inventories and a smaller-than-expected decline in overall crude stocks and sent US crude below the $US52 a barrel mark for the first time in two weeks.
Morgan Stanley rose 2 per cent after posting a surge in quarterly profit, taking some of the sting out of a disappointing report from Goldman Sachs on Tuesday.
Overall, profits of S&P 500 companies are estimated to have risen 10.8 per cent in the quarter – the best since 2011.
The Dow Jones Industrial Average fell 0.58 per cent to 20,404.15
The S&P 500 lost 0.17 per cent to 2,338.16
The Nasdaq Composite added 0.23 per cent to 5,863.03.
- Gold prices dropped to a one-week low Wednesday, under pressure from a strong U.S. dollar and rising bond yields.
- IRON ORE: $70.95 +0.21( April contract )
- Crude prices had their worst day in over a month after the U.S. Energy Information Administration reported an unexpected increase in gasoline supplies.
- The 1.5-million-barrel increase in gasoline stockpiles raised fears that a glut in the fuel would cause refiners to go on a diet, cutting their purchases of crude and sending oil prices lower.
- U.S. crude futures fell $1.97, or 3.8%, to $50.44 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell $1.96, or 3.6%, to $52.93 a barrel.
- It was the steepest tumble for both benchmarks since March 8, when oil prices sold off sharply after weekly EIA data showed an unexpected increase in crude supplies.
- The U.S. dollar bounced off a five-month low Wednesday as investors brushed off recent geopolitical tensions.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, rose 0.3% to 89.76 after closing at its lowest level since Nov. 10 a day earlier.
- The dollar rose 0.3% against the Japanese yen, on track to snap a five-day losing streak.
- The yen and other safe-haven assets such as gold have jumped recently amid mounting geopolitical tensions, but traders refocused on the U.S. economy Wednesday.
- The Federal Reserve’s so-called beige book, a report on regional economic conditions, showed that inflation continues to edge higher.
- The anecdotal report comes after government data released Friday showed a surprise decline in consumer prices, including the first decline in core prices since 2010.
- The Fed has been watching consumer-price measures closely, as firming inflation would support the central bank’s case for raising rates.
The euro slipped 0.1% against the dollar as investors remained cautious ahead of the French election, which begins this weekend.
- The Australian dollar is lower against its US counterpart which has retraced its losses from the previous session.
- At 7.00 a.m. AEST on Thursday, the Australian dollar was worth 74.96 US cents, down from 75.17 US cents on Wednesday.
- European shares recovered on Wednesday from their biggest one-day loss in five months, as a rebound in banking stocks and some positive first-quarter results outweighed weakness in oil and gas stocks.
- The pan-European STOXX 600 was up 0.2 per cent at its close, after hitting a three-week low on Tuesday.
- Britain’s FTSE extended the previous session’s losses, dropping 0.1 per cent and giving up its year-to-date gains as sterling strength weighed on its constituents, most of which are major exporters after UK prime minister Theresa May called for a snap general election.
- Banking stocks snapped a six-day losing streak – their longest run of daily losses for 11 months – to rise 1.8 per cent, making them the top sectoral gainers.
- Banco Popular and UniCredit were among top gainers, adding 5.5 per cent and 6.1 per cent respectively.
- Basic resources also bounced back, gaining 0.8 per cent, while oil and gas stocks fell 0.7 per cent as crude prices dipped on bloated US supplies.
- Earnings, which began in earnest for European companies, were mixed.
- Asian equities were largely shunned with MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.6 per cent to the lowest since mid-March.
- Japan’s Nikkei managed to steady for the moment, but Shanghai extended its recent retreat with a drop of 0.81 per cent.
- Hong Kong stocks fell for the third straight session, as worries about France’s presidential election and tensions over North Korea dampened investor appetite for riskier assets.
- The Hang Seng index fell 0.41 per cent to 23,825.88 points.
- The Chinese market has fallen for four straight sessions on concerns over tighter regulations against speculation and shadow banking will hurt the country’s credit-fuelled recovery.
- The blue-chip CSI300 index fell 0.48 per cent to 3,446.08 points, while the Shanghai Composite Index lost 0.81 per cent to 3,170.23 points.
- The S&P/NZX 50 index declined 15 points, or 0.2 per cent, to 7218.52.
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