Thursday: 8th June 2017
Each Market In Focus
- The Australian share market looks set to open lower after oil prices slumped more than four per cent and iron ore prices dropped one per cent.
- At 7.00 a.m. AEST on Thursday, the share price futures index was down 10 points, or 0.18 per cent, at 5,654.
- International markets have been reserved in the offshore sessions with several ending flat ahead of key political and monetary events.
- Locally, in economic news on Thursday, the Australian Bureau of Statistics is due to release May’s international trade in goods and services figures.
- No major equities news is expected.
- The Australian share market on Wednesday was steady as gains by banks and healthcare companies offset falls by the supermarket giants, while better-than-expected economic growth boosted the Australian dollar.
- The benchmark S&P/ASX200 index fell 0.3 points, or 0.01 per cent, to 5,667.2 points.
- The broader All Ordinaries index lost 0.3 points, or 0.01 per cent, to 5,707.8 points.
- Meanwhile, the Australian dollar has crept fractionally higher against its US counterpart which basically has been treading water in the offshore session.
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 risen despite a sharp decline in energy shares after written testimony from former FBI director James Comey did not add major revelations about an investigation into Russian meddling with last year’s US presidential election.
- Comey, who was fired by Donald Trump in May, wrote that the president asked him to drop an investigation into former national security adviser Michael Flynn.
- But the details of Comey’s testimony, expected to be delivered Thursday (US time) to a Senate Committee, appeared to be priced into the stock market.
- Investors were concerned that any additional revelation could dampen already flagging momentum for Trump’s agenda of lower taxes and lax regulations.
- Bets that Trump can implement his agenda are partly behind a rally that has taken stock indexes to record highs.
- The Dow Jones Industrial Average rose 0.18 per cent to 21,173.69, the S&P 500 gained 0.16 per cent to 2,433.14 and the Nasdaq Composite added 0.36 per cent to 6,297.38.
- Gold’s rally paused, after hitting fresh 2017 highs on Tuesday on the back of increased macroeconomic and political risk. Gold for August delivery settled down 0.3% at $1,293.20 a troy ounce on the Comex division of the New York Mercantile Exchange, breaking a three-session winning streak.
- IRON ORE: $55.13 -0.54 ( June contract )
U.S. oil prices had their worst day since March, falling to their second lowest level of the year after U.S. data showed an unexpected increase in oil stockpiles.
The unexpected buildup of supplies shook an already anxious market. Investors, many of whom have been burned by oil’s bumpy ride to recovery, have been watching the U.S. storage figures each week for signs that the glut that has weighed on the market for nearly three years is dissipating.
U.S. crude futures fell $2.47, or 5.1%, to $45.72 a barrel. It was the biggest single day decline since March 8.
Brent, the global benchmark, fell $2.06, or 4.1%, to $48.06 — their lowest level since before the Organization of the Petroleum Exporting Countries and other major producers struck an agreement to cut output in November.
Major selloffs have become a regular feature of the oil market in recent months as traders and investors try to gauge whether OPEC’s efforts are working.
- The U.S. dollar firmed on Wednesday, a day ahead of highly-anticipated testimony from former Federal Bureau of Investigation Director James Comey, the U.K.’s general election and a European Central Bank meeting.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, rose 0.1%, to 88.06. A day earlier, the index closed at its lowest level since Nov. 4.
- Meanwhile, the euro slipped 0.2% against the dollar on Wednesday ahead of the ECB’s policy meeting.
- Investors have grown optimistic that the ECB will signal a more hawkish outlook on the economy at its meeting on Thursday, but a report Wednesday indicated the central bank will revise its inflation forecast lower.
- That would dampen the ECB’s case for unwinding quantitative easing soon and weigh on the euro.
- The British pound rose 0.4%, to $1.2962, ahead of Thursday’s U.K. general election, which investors say could shape the Brexit negotiations. The pound has oscillated as polls show a tighter race than originally anticipated.
- The Australian dollar has crept a little higher against its US counterpart amid falls in oil and iron ore prices and ahead of several key political and monetary events.
- At 7.00 a.m. AEST on Thursday, the Australian dollar was worth 75.53 US cents, up from 75.47 US cents on Wednesday.
Banks and utilities supported European stocks on Wednesday, with relief that Spain’s struggling Banco Popular was being rescued by Santander lifting bank shares.
The STOXX 600 index fell 0.1 per cent, weighed down by a late drop in energy stocks.
Crude oil prices plunged after data showed US stocks of crude oil and petrol surprisingly rose last week.
Germany’s DAX inched 0.1 per cent.
A sharp drop in energy shares and weakness among big international companies, whose profits benefit from a weak local currency, drove the FTSE 100 down 0.6 per cent, the day before Britons begin voting in parliamentary elections that will shape talks for the country’s exit from the European Union.
- Asian stocks inched higher on Wednesday but investors remained noticeably risk averse.
- With UK elections, a European Central Bank policy meeting where policymakers may take a less dovish stance, and former FBI director James Comey’s Senate testimony all set for Thursday, market participants are wary of making big bets.
- MSCI’s broadest index of Asia-Pacific shares outside Japan crept up 0.1 per cent, while Japan’s Nikkei 225 was flat, lifting 0.02 per cent to 19,984.62.
- Hong Kong stocks also ended flat, but negative, after hitting a fresh 23-month intraday high, with more listed companies in the city targeted by short-sellers.
- The Hang Seng index fell 0.09 per cent, to 25,974.16, while the China Enterprises Index gained 0.1 per cent, to 10,611.46 points.
- China stocks advanced, led by the blue-chip CSI300 index closing at a six-month high, as a growing number of listed firms encouraged employees to buy shares, and as the central bank moved to ease fears of a mid-year liquidity crunch.
- The blue-chip CSI300 index rose 1.2 per cent, to 3,533.87 points, while the Shanghai Composite Index also advanced 1.2 per cent to 3,140.32 points.
- The S&P/NZX50 Index fell 0.4 per cent to 7467.9.
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