Thursday: 29th June 2017
Each Market In Focus
- The Australian market looks set to open sharply higher after Wall Street surged and the S&P 500 had its biggest one-day lift in percentage terms in about two months.
- At 7.00 AEST on Thursday, the share price futures index was up 40 points, or 0.7 per cent, at 5,736.
- Locally, in economic news on Thursday, the Australian Bureau of Statistics releases May’s job vacancies figures.
- The Australian Industry Group/Australian Constructors Association Construction Outlook survey is expected.
- In equities news, Rio Tinto shareholders are set to vote on the mining giant’s proposed sale of Coal & Allied to Yancoal, while cloud-based human resources software company ELMO is slated to list on the ASX.
- The Australian market on Wednesday overcame a sluggish start to close higher, as a rally in iron ore and oil prices boosted mining and energy stocks.
- The benchmark S&P/ASX 200 index rose 41.5 points, or 0.73 per cent, to 5,755.7 points.
- The broader All Ordinaries index gained 43.6 points, or 0.76 per cent, to 5,696 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
- Wall Street has rallied sharply, with the S&P 500 scoring its biggest one-day percentage gain in about two months, as financial and tech stocks led a broad market rebound.
- The Nasdaq posted its best session since November 7, the day before the US presidential election.
- The benchmark S&P had suffered its biggest one-day drop in about six weeks on Tuesday after a healthcare bill was delayed in the Senate.
- The healthcare legislation is the first major plank of President Donald Trump’s domestic policy agenda, with investors eager for him to move onto his other plans including tax cuts, infrastructure spending and deregulation.
- Investors may be re-evaluating the impact of the Senate’s delay on the market and Trump’s agenda, said Rick Meckler, president of LibertyView Capital Management in New Jersey.
- The Dow Jones Industrial Average rose 0.68 per cent to 21,454.61, the S&P 500 gained 0.88 per cent to 2440.69 and the Nasdaq Composite added 1.43 per cent to 6234.41.
- Gold prices ended higher as the dollar extended its decline, but strength in U.S. equities and Treasury yields served to cap the metal’s upside.
- Gold for August delivery on Comex rose $2.20, or 0.2%, to settle at $1,249.10 an ounce.
- September copper rose 1.5 cents, or 0.5%, to $2.676 a pound.
- IRON ORE: $61.78 +2.22 ( July contract )
Oil prices settled higher, finding support from the largest weekly decline in total U.S. crude production year to date, even as some analysts dubbed the fall as temporary and domestic supplies edged higher.
Total U.S. crude production fell by 100,000 barrels a day last week, according to the Energy Information Administration.
That’s when Tropical Storm Cindy disrupted output in the Gulf of Mexico.
Domestic crude supplies rose 100,000 barrels for the week, contrary to expectations for a sizable decline.
August WTI crude tacked on 50 cents, or 1.1%, to settle $44.74 a barrel on the New York Mercantile Exchange.
Brent crude for August delivery gained 66 cents, or 1.41%, to $47.31 a barrel.
- The euro and British pound surged as investors assessed the outlook for tighter monetary policy.
- The euro rose 0.6% to $1.1366 after touching its highest intraday level in a year earlier in the day. The British pound surged 0.9% to $1.2933.
- Trading in the euro has been volatile in recent days as investors digest contradictory comments from ECB officials about the central bank’s plans to pare back its quantitative easing program.
- ECB President Mario Draghi Tuesday sparked the euro’s biggest daily gain against the dollar in a year by saying that the ECB’s stimulus program will be gradually withdrawn as the eurozone economy continues improves.
- On Wednesday, ECB Vice President Vítor Constâncio suggested investors might have overreacted to Mr. Draghi’s earlier speech.
- The euro spiked lower after the comments but quickly recovered.
- Meanwhile, the British pound surged after Bank of England Gov. Mark Carney said the case for raising interest rates in the U.K. may strengthen in the coming months if the economy keeps motoring despite weak consumer spending.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, fell 0.3% to 88.05 as the dollar also weakened against the Japanese yen and some emerging-market currencies.
- The Australian dollar is up almost half a cent against its weakening US counterpart amid a surge in the prices of iron ore and oil.
- The US dollar fell in the wake of the decision to delay a US Senate vote on a bill to repeal and replace Democratic former President Barack Obama’s 2010 healthcare law.
- It also touched its lowest level against the euro in a year after hawkish comments from the head of the Bank of England added to speculation that monetary policy in Europe was turning hawkish.
European shares mainly ended flat on Wednesday as a third day of gains for banking stocks in a session dominated by bets about future central bank action offset a tech sell-off.
The STOXX 600 ended flat as further gains among financials, which benefit from tighter monetary policy, drove the pan-European index off a 2-month low hit in morning trading.
Investors remained focused on when the European Central Bank would begin winding down its stimulus after comments on Tuesday from President Mario Draghi that were taken as a hawkish swing, lifting the euro and boosting banks.
Utilities, which instead benefit from loose monetary policy, fell 0.2 per cent but came off lows after media reports that Draghi’s remarks on Tuesday had been overinterpreted.
German utilities RWE and E.ON were among the worst performers, down 2.4 and 1.3 per cent respectively.
Germany’s DAX lost 0.2 per cent to 12,647.27.
Britain’s top share index dipped, depressed by a slide in Hargreaves Lansdown and oil stocks, though a jump in Bunzl’s shares offered some relief.
The FTSE 100 index fell 0.6 per cent to 7,387.80. A brief recovery was brought to an end in afternoon trading when Bank of England governor Mark Carney said the bank would debate an interest rate increase in the coming months.
- Asian shares slumped after Wall Street was knocked hard in the wake of a delay to a US healthcare reform vote.
- MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.4 per cent, pulling further away from more than two-year highs probed earlier this week.
- Japan’s Nikkei share average ended down 0.5 per cent at 20,130.41, facing headwinds from the US dollar’s reversal of its rise against the yen. But the banking and insurance sectors outperformed on expectations of higher rates.
- Hong Kong stocks fell the most in nearly two weeks, with sentiment hurt by Wall Street’s stumble and more losses on the city’s second board following the previous session’s nearly 10 per cent slide.
- The Hang Seng index fell 0.6 per cent to 25,683.50, while the China Enterprises Index lost 0.9 per cent to 10,408.19 points.
- China’s main stocks indexes fell as comments by Premier Li Keqiang raised concerns over an economic slowdown and regulatory tightening.
- The blue-chip CSI300 index fell 0.8 per cent, to 3,646.17 points, while the Shanghai Composite Index lost 0.6 per cent to 3,173.20 points.
- The S&P/NZX 50 Index dropped 0.02 per cent to 7624.49.
Important News Events For Today
“Don’t watch the clock; do what it does. Keep going”. – Sam Levenson
*Now you know everything.*