Thursday: 28th June 2017
Each Market In Focus
- The Australian market looks set to open lower following falls on Wall Street’s three key indexes with the Nasdaq dropping more than one per cent.
- At 0700 AEST on Wednesday, the share price futures index was down 12 points, or 0.2 per cent, at 5,642.
- Locally, no major economic news is expected on Wednesday.
- In equities, Rio Tinto is expected to report the outcome of a shareholder meeting in London to vote on the proposed sale of its Coal & Allied business to Yancoal.
- The Australian market on Tuesday closed marginally lower after a shaky start as broad-based losses held back gains in financial and mining stocks.
- The benchmark S&P/ASX200 index fell 6 points, or 0.1 per cent, to 5,714.2 points.
- The broader All Ordinaries index lost 5.9 points, or 0.1 per cent, to 5,752.5 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)
Scans Powered by Metastock. Click here for more information
- The tech-heavy Nasdaq has led a broad Wall Street decline with stocks falling more sharply after a healthcare bill was delayed in the US Senate, raising fresh questions about President Trump’s domestic agenda.
- The benchmark S&P 500 posted its biggest one-day drop in about six weeks and closed at its lowest point since May 31.
- Major indexes extended losses after US Senate Republican leader Mitch McConnell decided to put off a planned vote on a bill to dismantle the Affordable Care Act until after the Senate’s July 4 recess.
- The healthcare legislation, which has encountered resistance from several Republicans, is the first plank of Trump’s domestic policy agenda, with investors eager for him to move onto his other plans including tax cuts, infrastructure spending and deregulation.
- The Dow Jones Industrial Average fell 0.46 per cent to 21,310.66, the S&P 500 lost 0.81 per cent to 2419.38 and the Nasdaq Composite dropped 1.61 per cent to 6146.62.
- Big tech names weighed most heavily on the S&P 500. Google parent Alphabet fell 2.5 per cent after EU antitrust regulators hit the tech giant with a record $2.7-billion ($A3.6b) fine.
- The Nasdaq had its worst day since a tech-led slide on June 9 raised questions about the sector.
- Gold edged higher to notch its fourth gain in five sessions as the dollar dropped and U.S. equities weakened, drawing investor attention to the precious metal.
- Prices finished off the day’s best levels, however, losing ground as Federal Reserve Chairwoman Janet Yellen started speaking about global economic issues at an event in London in the minutes ahead of gold’s price settlement.
- August gold added 50 cents, or less than 0.05%, to settle at $1,246.90 an ounce after touching an earlier high of $1,253.80.
- U.S. data showing a larger-than-expected rise to 118.9 in the consumer confidence index also helped fuel a decline in gold and silver from the session’s highs.
- September silver rose 2 cents, or 0.1%, to $16.651 an ounce after trading as high as $16.73.
- IRON ORE: $59.56 +2.90 ( July contract )
- Oil prices surged after reports of significant cyberattacks on global businesses, including a shipper and a Russian oil giant.
- Light, sweet crude for August settled up 86 cents, or 2%, at $44.24 a barrel on the New York Mercantile Exchange. Brent gained 82 cents, or 1.8%, to $46.65 a barrel on ICE Futures Europe.
- Both made their largest daily gains in the past month. The market had already been getting a boost from bargain hunters and momentum from recent trading sessions.
- Prices are up for four straight sessions now, rising more than 4% since they hit their low point of the year on Wednesday. It is the longest winning streak in a month.
- The euro rallied nearly 1% against the dollar intraday after upbeat comments from European Central Bank President Mario Draghi fueled speculation that the central bank could soon unwind its quantitative easing program.
- The euro was recently up 0.9% to $1.1279 after rising above $1.13 earlier in the session for the first time since September.
- In a closely watched speech at the ECB’s annual economic-policy conference in Portugal, Mr. Draghi said the ECB’s stimulus will be gradually withdrawn as the eurozone economy continues to improve.
- The ECB is widely expected to announce in September or October that it will start early next year to taper, or wind down, its bond purchases.
- Investor expectations that the ECB’s ultra loose monetary policy could soon come to an end have driven the euro up 7% against the dollar this year, making it the best-performing major currency.
- The Australian dollar is lower against its US counterpart, dropping back below 76 US cents.
- At 7.00 a.m. AEST on Wednesday, the Australian dollar was worth 75.83 US cents, down from 76.02 US cents on Tuesday.
- Hawkish comments from European Central Bank president Mario Draghi hit interest rate-sensitive utilities shares on Tuesday, dragging down European indexes, while a warning from auto parts supplier Schaeffler hit the whole sector.
- Draghi on Tuesday opened the door to tweaks in the bank’s aggressive stimulus policy, fuelling market expectations the bank will announce a reduction of stimulus as soon as September.
- Utilities, whose constant dividends flows become less attractive when monetary policy tightens, fell 2.4 per cent, suffering their biggest one day loss since November.
- Their losses helped drag the pan-European STOXX 600 index down 0.8 per cent.
- However shares in banks, which have long suffered from the ECB’s ultra loose policy, were boosted by Draghi’s remarks with the eurozone sectoral index ending up 1.4 per cent.
- Germany’s DAX lost 0.8 per cent to12,671.02
- Britain’s FTSE inched lower, weighed down by losses among pharma stocks, while updates from Carpetright and Debenhams gave conflicting pictures of the health of British consumers as inflationary pressures start to bite.
- The FTSE 100 ended down 0.2 per cent at 7,434.36, erasing almost all the previous session’s gains, with the pharma sector taking most points off the blue chip index.
Japanese stocks edged towards two-year highs on Tuesday as exporters benefited from US dollar strength, with investors expecting comments from Federal Reserve chair Janet Yellen to support the central bank’s projection for one more interest rate rise this year.
Yellen is scheduled to take part in a discussion on global economic issues at London’s Royal Academy and a number of other top Fed officials are also due to speak later in the global day.
Japan’s benchmark Nikkei rose 0.4 per cent to 20,225.09 in subdued trading.
Hong Kong stocks dipped, as any optimism from solid China industrial profit data was offset by the sour mood from a tumble in the growth enterprise market (GEM) for start-ups due to worries over potential policy changes.
The Hang Seng index fell 0.1 per cent, to 25,839.99, while the China Enterprises Index lost 0.3 per cent, to 10,498.07 points.
Investors largely looked past news that profits at China’s industrial companies surged 16.7 per cent in May from a year earlier.
China stocks recouped earlier losses to end higher, but investors turned cautious amid a strong rally in blue-chips after MSCI decided last week to add 222 China-listed stocks to its Emerging Markets Index.
The blue-chip CSI300 index rose 0.2 per cent, to 3,674.72 points, while the Shanghai Composite Index also added 0.2 per cent to 3,191.20 points.
The S&P/NZX 50 Index climbed 0.4 per cent to 7626.35.
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