Thursday: 27th July 2017
Each Market In Focus
- The Australian dollar has strongly rebounded against its US counterpart but the local share market looks set for a flat open.
- At 7.00 AEST on Thursday, the share price futures index was unchanged at 5,717.
- Locally, in economic news on Thursday, the Australian Bureau of Statistics releases the June quarter international trade price indexes.
- In equities news, rail freight operator Aurizon announced an impairment after the market closed on Wednesday.
- On Thursday, GUD Holdings is expected to release full-year results, Fortescue Metals Group is slated to release a quarter production report while Macquarie Group has its annual general meeting in Sydney.
- Coles managing director John Durkan is scheduled to speak at an AmCham lunch in Sydney.
- The Australian market on Wednesday closed strongly higher, following positive leads from Wall Street and solid rises in the oil and commodities markets.
- The benchmark S&P/ASX200 index closed up 50 points, or 0.87 per cent, at 5,776.6 points.
- The broader All Ordinaries index was up 48 points, or 0.83 per cent, at 5,823.3 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 climbed modestly to record closing highs after the Federal Reserve kept interest rates unchanged and strong earnings reports from Boeing and AT&T.
The US central bank’s statement did not dramatically sway Wall Street’s major indexes, which hit all-time peaks on a busy day of corporate earnings reports.
As broadly expected by investors, the Fed maintained its benchmark lending rate and said it was continuing the slow path of monetary tightening.
It said it expected to start winding down its massive holdings of bonds “relatively soon” in a sign of confidence in the US economy.
The Dow Jones Industrial Average rose 0.45 per cent to 21,711.01
The S&P 500 gained 0.03 per cent to 2,477.83
The Nasdaq Composite added 0.16 per cent to 6,422.75.
Gold prices reversed losses after the Federal Reserve kept interest rates unchanged at the latest meeting.
The spot price of gold in Sydney at 7.00 AEST was $US1,260.40 per fine ounce, from $US1,245.13 per fine ounce on Wednesday.
- IRON ORE: $67.68 ( August contract )
Oil prices rose for a third straight day Wednesday, hitting a near two-month high after U.S. data showing a larger-than-anticipated drop in the amount of crude in storage bolstered confidence that the oil market is tightening.
Oil prices have gone up more than 6% over the last three days as investors have started to come around to the idea that efforts by the Organization of the Petroleum Exporting Countries and other major exporters may actually be paying off.
On Wednesday, U.S. crude for September delivery rose 86 cents, or 1.8%, to $48.75 a barrel on the New York Mercantile Exchange.
Brent, the global benchmark, rose 60 cents, or 1.2%, to $50.80 a barrel on ICE Futures Europe.
Both benchmarks settled at their highest levels since May 30.
- The U.S. dollar slid Wednesday after the Federal Reserve’s latest policy announcement dampened expectations for U.S. interest rate increases.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, was recently down 0.6% to 86.17. The index had been up about 0.1% earlier in the day.
- At the close of its two-day policy meeting, the Fed left interest rates unchanged as widely expected by investors. But analysts said the dollar was hurt by tweaks to the central bank’s statement, indicating that policymakers have grown more concerned about a recent slowdown in inflation.
- Wednesday’s statement said inflation measures “have declined and are running below 2%.”
- With no press conference or new economic forecasts Wednesday, investors were focused on the statement for fresh clues on whether the weaker inflation trend will upset the Fed’s plans for raising rates one more time this year.
- Investors now see a roughly 44% chance that the Fed sticks to its plans to raise rates again in 2017, according to CME Group data. That’s down from 52% earlier in the day.
- Expectations that U.S. rates will remain lower typically weigh on the dollar by encouraging investors to buy higher-yielding currencies.
- The dollar recently fell 0.7% against the Japanese yen and euro.
- The greenback was also down sharply against emerging-market currencies, sliding roughly 1% against the Mexican peso, Brazilian real and Turkish lira.
- The Australian dollar has reached above 80 US cents, solidly retracing the losses prompted by Wednesday’s disappointing CPI figures.
- The local currency was trading at 80.01 US cents at 7.00 AEST on Thursday, from 78.91 on Wednesday.
- Strong updates from ITV and Compass Group helped Britain’s top share index inch up on Wednesday, underpinned also by gains among defensive stocks.
- Britain’s blue chip FTSE 100 index rose 0.24 per cent at 7,452.32 points, but ended off highs hit as sterling dropped.
- The currency slipped following data showing that UK economic growth edged higher in the second quarter.
- Company earnings were front and centre of the market action as shares in ITV jumped 2.4 per cent after the broadcaster reported first half earnings, adding it expected advertising pressure to ease in the third quarter.
- Supportive crude prices and strong results from energy firms and auto companies helped European shares rise.
- The pan-European STOXX 600 ended up 0.5 per cent, broadly in line with euro zone stocks and blue-chips , as oil and gas shares gained 0.8 per cent and autos climbed 0.6 per cent.
- Germany’s DAX lifted 0.3 per cent to 12,305.11.
Asian stocks steadied on Wednesday as investors awaited the Federal Reserve’s policy decision later in the day for more clues on its tightening plans.
MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed, but drew mild support after the S&P 500 climbed to an all-time high overnight on well-received results from McDonald’s and Caterpillar in addition to bank share gains.
Japan’s Nikkei added 0.5 per cent after the US dollar rallied against the yen overnight to pull away from seven-week lows.
Shanghai shed 0.4 per cent on lingering fears of further regulatory tightening, while South Korea’s KOSPI lost momentum after touching a record high the previous day and slipped 0.3 per cent.
Hong Kong shares ended higher on Wednesday as gains by energy and financial shares overcame sluggishness in other sectors hit by profit-taking after the Hang Seng index temporarily breached the 27,000 mark in early trade.
The benchmark Hang Seng index finished 0.3 per cent higher at 26,941.02.
The benchmark index is on track for a seventh straight month of gains in July, which would be its longest such rally in 10 years.
The Hang Seng China Enterprises Index was up 0.5 per cent at 10,831.50.
China blue-chip stocks fell for a second day, on lingering fears of further regulatory tightening, even though most China watchers do not expect any major new clampdown ahead of a sensitive national leadership reshuffle in autumn.
The blue-chip CSI300 index fell 0.4 per cent to 3,705.39 points, while the Shanghai Composite Index added 0.1 per cent to 3,247.67 points.
The S&P/NZX 50 Index dipped 0.03 per cent to 7710.59.
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