Thursday: 22nd June 2017
Each Market In Focus
- The Australian market looks set to open higher despite Wall Street’s Dow and S&P 500 closing lower, pulled down by another sharp fall in oil prices.
- At 7.00 AEST on Thursday, the share price futures index was up 18 points, or 0.32 per cent, at 5,622.
- Another two per cent fall in the oil price has weighed on international markets and prompted fresh concern among US investors over inflation prospects
- Locally, no major economic or equities news is expected on Thursday.
- On Wednesday, about $29 billion was wiped from the share market’s value in its worst session of 2017, as lower oil prices and a souring outlook for commodities hit energy and mining stocks, and the negative sentiment infected the big banks.
- The benchmark S&P/ASX 200 index lost 91.6 points, or 1.59 per cent, to 5,665.7 points.
- The broader All Ordinaries index dropped 89.1 points, or 1.54 per cent, to 5,703.2 points.
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 and Dow stock indexes were weighed down by falling energy shares as oil prices fell and added to investor concerns about low inflation, while healthcare and technology stocks helped lift the Nasdaq Composite index.
- Energy was the weakest S&P sector with a 1.6 per cent decline after oil prices reversed course during the morning session and US crude touched its lowest point since August despite larger-than expected declines in inventories.
- Continued weakness in oil futures added to investor worries about inflation and as a result hurt cyclicals such as banks and industrials.
- In general equity investors are biding their time ahead of quarterly results, which are expected to be good.
- The Dow Jones Industrial Average fell 0.27 per cent to close at 21,410.03, the S&P 500 closed flat, down 0.06 per cent, at 2,435.61 while the Nasdaq Composite added 0.74 per cent, rising to 6,233.95.
Copper prices rose, as investors shrugged off a drop in crude to focus on supply issues.
Copper for September delivery closed up 1.7% at $2.6150 a pound on the Comex division of the New York Mercantile Exchange.
In precious metals, gold for August delivery closed up 0.2% at $1,245.80 a troy ounce.
Prices for the safe haven metal have fallen around 4% from their June highs, weighed down by dissipating political uncertainty and an upbeat outlook from the Federal Reserve last week.
Gold struggles to compete with yield bearing investments when interest rates rise.
- IRON ORE: $78.89 -0.18( December contract )
- Oil prices fell to mark the lowest settlement for a front-month futures contract since Aug. 10.
- August WTI crude lost 98 cents, or 2.3%, to settle $42.53 a barrel on the New York Mercantile Exchange.
- Brent crude for August delivery lost $1.20, or 2.61%, to $44.82 a barrel.
- The U.S. dollar wavered as investors digested weak oil prices and mixed messages from Federal Reserve officials.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, was flat at 88.97 after closing at its highest level in a month a day earlier.
- Investors are watching comments from Federal Reserve officials this week for clues about the path for higher interest rates. The Fed signaled at its meeting this month that it still plans to raise rates one more time this year, but many investors remain doubtful due to a recent slowdown in inflation.
Meanwhile, oil-linked currencies stabilized alongside oil prices after U.S. crude officially entered a bear market on Tuesday.
The U.S. dollar edged up 0.3% against the Canadian dollar but slipped 0.1% against the Swedish krona. The U.S. dollar was little changed against the Russian ruble and Mexican peso
The British pound rose 0.4% to $1.2674 after a Bank of England economist said he was in favor of removing some stimulus provided in the wake of the Brexit vote later this year.
That comes after Bank of England Gov. Mark Carney earlier this week pushed back against speculation that the central bank could raise rates soon.
- The Australian dollar has extended losses against its US counterpart, despite the greenback’s underperformance, as the price of oil falls another two per cent.
- At 7.00 a.m. AEST on Thursday, the Australian dollar was worth 75.53 US cents, down from 75.67 US cents on Wednesday.
- Weakness among financial and energy stocks led European shares to fall again on Wednesday, as Provident Financial dropped following a profit warning, though Italian lenders bucked the downbeat trend.
- Europe’s STOXX 600 fell 0.2 per cent, extending the previous session’s losses slightly. Both eurozone stocks and blue chips fell 0.2 per cent. Financial services, insurance and banking stocks were among the worst performers, punished by heavy losses from British subprime lender Provident Financial.
- Provident plummeted as much as 20 per cent after warning that disruption from the reorganisation of its consumer credit division would weigh on its results for the rest of the financial year.
- Germany’s DAX finished 0.32 per cent lower at 12,774.26.
- British shares slipped as losses among energy stocks and Provident Financial weighed, while a stronger pound was also unhelpful.
- The blue chip FTSE 100 closed down 0.3 per cent at 7,447.79 points.
- The FTSE hit a session low after Bank of England Chief Economist Andy Haldane signalled he would back a rise in interest rates in the second half of this year, which also sent sterling higher.
- The Queen’s Speech, which included Prime Minister Theresa May’s legislative agenda for the next two years, appeared to have little impact on British shares.
- A renewed slump in oil prices to seven-month lows put Asian investors on edge, overshadowing a decision by US index provider MSCI to add mainland Chinese stocks to one of its popular benchmarks.
- MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.8 per cent, with Australia’s commodity-heavy market down 1.5 per cent.
- Japan’s Nikkei eased 0.45 per cent to 20,138.79.
- Hong Kong stocks fell on fears that MSCI’s decision to include more mainland China stocks in a key benchmark index will threaten the financial centre’s role as a key global investor gateway to China.
- Declines in Hong Kong contrasted with gains in rival Shanghai, highlighting the changing investment landscape in China as the US index publisher prepares to add 222 yuan-denominated A shares to its MSCI Emerging Markets Index starting June 2018.
- The Hang Seng index fell 0.57 per cent to 25,694.58, while the China Enterprises Index, a popular channel for global investors to bet on China plays, lost 0.7 per cent, to 10,393.59.
- After a slow start, China’s CSI300 index ended up 1.17 per cent at 3,587.95, while the Shanghai Composite added 0.52 per cent to 3,156.21.
- The S&P/NZX 50 index dropped 0.8 per cent to 7527.11.
Important News Events For Today
“The true secret of happiness lies in taking a genuine interest in all the details of daily life”. – William Morris
*Now you know everything.*