Tuesday: 17th January 2017
Each Market In Focus
- The Australian stock markets is set to slide on the open amid global uncertainty about the future direction of the US and UK economies.
- At 8.00 a.m. AEDT on Tuesday, the local SPI 200 futures contract was down eight points at 5,695 points.
- The main local risk event on Tuesday will be the release of official housing finance figures, including home loans and investment loans, for November.
- The Australian share market closed stronger on Monday, boosted by mining heavyweights, but afternoon trading was flat as investors await the inauguration of US president-elect Donald Trump, British Prime Minister Theresa May’s speech on Britain’s post-European Union future and Chinese GDP figures.
- The benchmark S&P/ASX200 was up 27.3 points, or 0.48 per cent, at 5,748.4 points.
- The broader All Ordinaries index was up 26.2 points, or 0.45 per cent, at 5,803.0 points
AUS Rio Tinto Ltd (RIO.LN) Q4 2016 Operations Review
NZ Sky City Entertainment Group Interim 2017 Guidance Limited (SKC.NZ)*
AUS Abacus Property Group (ABP.AU) Interim 2017 Ex-dividend date – proposed
AUS Cockatoo Coal Ltd* Quarterly Activities Report
NZ Dec REINZ Residential Market Report
NZ Dec REINZ Monthly Housing Price Index
NZ Q4 NZIER Quarterly Survey of Business Opinion
US Nov Housing Finance
AUS Dec New Motor Vehicle Sales
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)
- US markets were closed for the Martin Luther King Day holiday, crimping market activity and potentially exacerbating price moves.
- Gold prices started the week higher in London as the precious metal extended its rally from its multi-month lows reached last month.
- Spot gold was up 0.3% at $1,201.83 a troy ounce. Other precious metals were mixed.
- Gold, which is traditionally seen as a haven asset, is regaining its luster amid uncertainties linked to Chinese economic growth and the start of Donald Trump’s presidency in the U.S. In December, gold prices fell to their lowest level since February.
- Copper prices were trading slightly lower Monday as the dollar strengthened.
- The London Metal Exchange’s three-month copper contract was down 0.2% at $5,901 a metric ton in midmorning trade.
- Copper prices had staged a broad rally in the past few months on hopes that higher economic growth around the world would boost demand for the industrial metal. But a stronger dollar has been a headwind for copper and other dollar-priced commodities, which become more expensive for holders of other currencies as the dollar rises.
- IRON ORE: $82.00 +3.31( January contract )
- Crude futures made tepid gains in Asia on Monday morning–driven mainly by a weaker dollar–as investors await a report on how compliant major global producers have been with regard to the recent production-cut deal.
- On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $45.15 a barrel at 0158 GMT, up $0.26 in the Globex electronic session.
- January Brent crude on London’s ICE Futures exchange rose $0.44 to $46.59 a barrel.
- Because oil is traded in U.S. dollars, a weaker dollar means cheaper prices for foreign traders. The dollar was last up 0.2% at 92.05 according to the Wall Street Journal Dollar index, which compares the dollar to a basket of currencies.
- The pound traded at three-month lows against the dollar on Monday as investors fretted over the likelihood of Britain pulling out of the European Union’s single market.
- The fall came ahead of a speech by U.K. Prime Minister Theresa May on Tuesday, in which she is expected to elaborate on her government’s priorities in negotiations over Britain’s exit from the EU.
- Despite the pound’s recent decline, many investors believe that the currency has yet to fully reflect the political risks facing the British economy.
- Reacting to this, the pound fell as much as 1.6% against the dollar late Sunday before rising slightly in Asian trading hours on Monday. As European markets closed, the pound changed hands at $1.205, down 1.1%.
- The pound fell about 0.6% against the euro, to 1.138.
- The Australian dollar is flat as risk aversion offset the impact of reports that Chinese bulk prices are rising.
The local currency was trading at 74.737 US cents at 8.00 a.m. AEDT on Tuesday, down a touch from 74.86 US cents on Friday.
- Investors sold sterling and stocks on Monday, seeking shelter in gold and the Japanese yen as uncertainty over Britain’s departure from the European Union and the policies of US President-elect Donald Trump curbed appetite for risky assets.
- The U.S. dollar rose, except against the yen, rebounding after suffering its worst week since November last week, when it was hit by a lack of clarity over what Trump, whose inauguration is on Friday, will do once he assumes office.
- The price of gold, a frequently sought haven for investors in uncertain times, hit its highest level since November.
- Yields on low-risk German government bonds fell, but those on Italian equivalents edged up after rating agency DBRS cut Italy’s credit rating late on Friday, a move that could raise borrowing costs for the country’s banks.
- But the eye-catching mover was Britain’s pound, a day before a speech by British Prime Minister Theresa May. Media reported that she would lay out an exit from the EU that would see Britain lose access to the bloc’s single market.
- The pound fell as low as $1.1983 in thin early Asian trade, which, barring a sudden “flash crash” in October, was its weakest against the dollar in 32 years.
- Investors will scrutinise May’s speech for clues to whether she plans to prioritise immigration controls in a “hard Brexit” that some analysts say could hurt the economy.
- The fall in sterling, which makes UK exports cheaper, has contributed to an unprecedented 14-day rally in the blue-chip FTSE 100 stock index.
- The index fell 0.2 per cent on Monday but still outperformed continental European markets.
- The main STOXX 600 index fell 0.8 per cent, as declines in autos and banks offset a rally in eyewear makers Luxottica and Essilor, who agreed a 46 billion-euro merger.
- German carmakers BMW, Daimler and VW fell between 1.6 and 1.8 per cent after Trump warned he would impose a 35 per cent border tax on vehicles imported to the US market.
- Sterling slid to three-month lows in Asia on Monday with investors spooked anew by concerns over Britain’s divorce from the European Union, while US policy uncertainty lingered ahead of President-elect Donald Trump’s inauguration.
- Regional share markets were hesitant. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.5 per cent, Japan’s Nikkei lost 0.6 per cent and Shanghai shed 1.4 per cent.
- Spread betters pointed to likely opening gains for UK shares, but a drop for German equities.
- All the early action was in currencies where the pound sank as low as $1.1983, depths not seen since the flash crash of October, having finished around $1.2175 in New York on Friday. It was last down 1.2 per cent at $1.2032.
- Investors have been worried such a decisive break from the single market would hurt British exports and drive foreign investment out of the country.
- The flight from sterling benefited the safe-haven Japanese yen, with the pound down 1.5 per cent to 137.34 yen while the US dollar dipped to 114.17.
- Against a basket of currencies, the dollar was up 0.3 per cent at 101.510.
- The euro pared initial losses to stand at $1.0611.
- New Zealand shares rose with market activity still quiet ahead of February’s reporting season.
- The S&P/NZX50 Index rose 27.97 points, or 0.4 per cent, to 7,074.94.
Important News Events For Today
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