Thursday: 2nd February 2017
Each Market In Focus
At 8.00 a.m. AEDT on Thursday, the share price futures index was up 9 points at 5,608
Australian shares rose for the first day this week on Wednesday, as resources companies helped drive a broad recovery.
Higher base metal and crude oil prices set the tone for a positive session for mining and energy stocks, aided by a number of analyst price-target increases on Fortescue Metals Group’s shares in the wake of quarterly production numbers.
The major banks added weight to the market’s advance, bouncing back from sharp falls the last two days as investors pulled back from stocks that have had attractive strong buying since the U.S. election.
- US Tabcorp Holdings (TAH.AU) Interim 2017 Results
- AUS Downer EDI Ltd (DOW.AU) Interim 2017 Results
- NZ Dec International Visitor Arrivals
- AUS Dec Building Approvals
- AUS Dec International Trade in Goods & Services
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)
- The S&P 500 and the Dow are little changed as gains in technology stocks were offset by losses in energy, ahead of the Federal Reserve’s decision on interest rates.
- However, the Nasdaq, which is more weighted towards technology stocks, was lifted by a 6.4 per cent rise in Apple following the company’s strong earnings and iPhone sales.
- A rate hike is not the likely outcome of the Fed’s first meeting under President Donald Trump as the central bank awaits more clarity on his policies.
- But investors will dissect the statement, to see how the policymakers view the economy under Trump and whether a recent spate of strong economic data alters their take on futures hikes.
- Investors has paid close attention to Trump’s comments and decisions, which have caused volatility. His latest move to restrict travel to the United States unleashed uncertainty and losses on Wall Street in the past few days.
- Dow Jones industrial average was up 17.9 points, or 0.09 per cent at 19,881.99
- S&P 500 was down 1.96 points, or 0.08 per cent, at 2,276.91
- Nasdaq Composite was up 19.79 points, or 0.35 per cent, at 5,634.58.
- Copper prices retreated Wednesday as traders took profits after concerns over an imminent strike at the world’s biggest copper mine pushed prices near a 20-month high.
- Copper for March delivery settled down 0.6% at $2.7115 a pound on the Comex division of the New York Mercantile Exchange, after closing at the highest level since June 2015 a day earlier.
- Gold prices pared losses after the Federal Reserve gave little indication of when it plans to raise interest rates this year.
- Gold for April delivery was recently near flat at $1,211.30 a troy ounce in electronic trading.
- Prices settled down 0.3% at $1,208.30 an ounce on the Comex division of the New York Mercantile Exchange.
- IRON ORE: $83.12 +0.88 ( February contract )
- Oil futures rallied to their highest settlement in more than three weeks on Wednesday as U.S. government data showed the biggest rise in crude supplies in three months, but
also revealed a pull back in weekly domestic crude production.
- Prices also continued to draw support from estimates that show that major oil producers are easing back their production levels.
- March West Texas Intermediate crude rose $1.07, or 2%, to settle at $53.88 a barrel on the New York Mercantile Exchange-the highest settlement since Jan. 6.
- It was trading at $53.12 shortly before the supply data.
- April Brent crude rose $1.22, or 2.2%, to $56.80 on the ICE Futures exchange in London.
- The U.S. dollar pared some gains after the Federal Reserve’s latest policy decision offered few clues into the central bank’s plans for raising interest rates this year.
- The WSJ Dollar Index, measuring the U.S. currency against 16 others, was up 0.2% to 90.68. The index had been up about 0.4% before the announcement.
- The Fed left interest rates unchanged at the close of its two-day policy meeting, in line with market expectations. In a statement, the Fed said it remains on track to gradually raise short-term interest rates this year and also pointed to improvements in the economy.
- The Australian dollar is higher against its US counterpart even though the greenback recovered some ground following stronger-than-expected US private jobs and manufacturing data.
- At 7.00 a.m. AEDT on Thursday, the Australian dollar was worth 75.89 US cents, up from 75.67 on Wednesday.
- European shares have climbed with risk appetite creeping back
- Both the pan-European FTSE 300 and the STOXX 600 indexes were up around 1 per cent.
- Healthy results from a slew of Europe’s bluechips also bolstered the mood, lifting its main bourses 0.8 per cent and snapping a four-day losing streak for MSCI’s 46-country All World index.
- Markets remained jittery however. Trump’s top trade adviser had also said on Tuesday that Germany was using a “grossly undervalued” euro to exploit its trading partners.
- The accusations drew rebuttals from German and Japanese officials, but looked likely to run for some time.
- There was little reaction to a raft of European data. Sterling barely budged after data showed its fall since June’s UK Brexit vote had stoked the sharpest rise in factory costs on record but had offered little boost to exports.
- Eurozone factories meanwhile started 2017 by ramping up activity at the fastest rate for nearly six years.
- Germany’s DAX closed more than 1 per cent higher at 11,659.50.
- London’s FTSE100 gained 0.12 per cent to 7,107.65.
- Japanese investors seemed relieved the yen’s 0.5 per cent rise against the US dollar had not been larger. They nudged the Nikkei up 0.56 per cent to 19,148.08, and
- MSCI’s broadest index of Asia-Pacific shares outside Japan 0.36 per cent in a largely quiet session.
- But, Hong Kong’s Hang Seng Index fell 0.18 per cent to 19.148.08.
- China’s Shanghai Composite Index was closed for the Lunar New Year public holiday.
- The S&P/NZX50 Index rose 4.76 points, or 0.07 per cent, to 7,055.51.
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