Wednesday: 14th December 2016
Each Market In Focus
- The Australian share market is set to open higher as US stocks hit record highs.
- At 8.00 a.m. AEDT on Wednesday, the local share price index was up24 points, or 0.63 per cent, at 5,574.
- In local news on Wednesday, the monthly Westpac-Melbourne Institute monthly consumer sentiment index survey will be released and paints and adhesives supplier DuluxGroup will
hold its annual general meeting.
- The Australian Bureau of Statistics is also set to release net motor vehicle sales for November.
- In Australia, the market on Tuesday closed lower following heavy sell-offs among the miners and banks.
- The benchmark S&P/ASX 200 index was down 0.32 per cent, while the broader All Ordinaries index was down 18.4 points, or 0.33 per cent, at 5,600.7 points.
- AUS DuluxGroup Ltd (DLX.AU) Full year 2016 AGM
- AUS Macquarie Group Ltd (MQG.AU) Interim 2017 Dividend payment date
- AUS Technology One Ltd (TNE.AU) Full year 2016 Dividend payment date
- AUS GrainCorp Ltd (GNC.AU) Full year 2016 Dividend payment date
- AUS Dec Westpac – Melbourne Institute Consumer Sentiment Survey
- AUS Nov New Motor Vehicles sales
- AUS Dec Monthly Leading Indicator of Employment
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 stocks reached all-time highs on Tuesday, with the Dow Jones industrial average less than 100 points away from the 20,000 mark, as a record-setting post-election rally showed no signs of fatigue.
- All the three major indexes hit record highs shortly after the open. The Dow has risen about 8.6 per cent since November 8, with President-elect Donald Trump’s expected agenda of economic stimulus and reduced taxes and regulations fueling the rally.
- The sharp run has also been supported by positive economic data, including a strong labour market, and S&P 500 companies’ results, which in the third quarter were poised to snap a year-long earnings recession.
- Market participants are also keeping a close watch on the Federal Reserve’s two-day meeting, starting today, where the central bank is widely expected to lift interest rates for the second time since the financial crisis.
- A hike of 25 basis points in the Fed’s target range of 0.25-0.50 per cent is priced in, but investors will be examining the Fed’s statement and economic forecasts for signs of the central bank’s thinking on how Trump’s election has affected the outlook for growth and inflation.
- Still, there are some concerns over valuations. The S&P 500 is trading near 17.7 times forward 12-month earnings, above the 10-year median of 14.7 times.
- The Dow Jones industrial average was up 106.63 points, or 0.54 per cent, at 19,903.06
- The S&P 500 was up 15.22 points, or 0.67 per cent, at 2,272.18
- Nasdaq Composite was up 62.83 points, or 1.16 per cent, at 5,475.37.
- Eight of the 11 major S&P sectors were higher, with the technology index’s 1.61 percent jump leading the advancers. The index fell 0.5 per cent on Monday after posting its largest weekly advance in a year last week.
- Apple was up 2.1 per cent and provided the biggest support to the S&P and Nasdaq, while IBM rose 2.3 per cent, helping lift the Dow.
- Other tech giants Microsoft and Amazon were up 1.7 and 2.7 per cent, respectively.
- Copper prices pared losses, although fears of worsening relations between the U.S. and China continued to weigh on the metal.
- Copper for March delivery closed down 0.8% at $2.5985 a pound on the Comex division of the New York Mercantile Exchange.
- Prices were as low as $2.5665 a pound earlier in the session.
- Gold prices fell, as the Federal Reserve kicked off a two-day meeting that many investors believe will culminate in a rate increase.
- Gold for February delivery closed down 0.6% at $1159 a troy ounce on the Comex division of the New York Mercantile Exchange.
- IRON ORE: $81.35 +2.46 ( December contract )
- Oil futures settled at their highest level since July 2015 after an energy watchdog lifted its demand forecast for this year and predicted that planned output cuts by major oil-producing nations will stabilize prices.
- January West Texas Intermediate crude tacked on 15 cents, or 0.3%, to settle at $52.98 a barrel after trading as high as $53.41.
- February Brent crude added 3 cents, or less than 0.1%, to $55.72 a barrel on the ICE Futures exchange in London.
- Prices for both WTI and Brent edged above Monday’s finish to again mark at their highest levels in about 17 months.
- The U.S. dollar wavered as investors stuck to the sidelines a day ahead of the Federal Reserve’s latest policy decision.
- The Fed will announce its latest policy decision Wednesday, and investors widely expect the central bank to lift U.S. borrowing costs for the first time in a year.
- Investors’ focus will be on the Fed’s statements for hints that the central bank could raise interest rates more aggressively going forward.
- Higher rates typically boost the dollar by making dollar assets more attractive to yield-seeking investors.
- The Australian dollar is up slightly on the back of a weaker greenback and rally on Wall Street.
- At 8.00 a.m. AEDT on Wednesday, the local unit was trading at 75.01 US cents, flat from 74.94 cents on Tuesday.
- UK shares rose on Tuesday, thanks to gains in aero-engine maker Rolls-Royce, broadcaster ITV and airline company IAG on expectations of a US rate rise.
- European shares also found support, helped by a rally in Italy’s biggest bank UniCredit on plans to bolster its balance sheet, while takeover speculation allowed Mediaset to make its best one-day gain ever.
- Mediaset surged 31.9 per cent, the biggest gainer in Europe, after French media group Vivendi said it owned a 3 per cent stake in the Italian broadcaster and planned to raise that to as much as 20 per cent, fuelling expectations of a takeover bid.
- Shares in its Spanish arm Mediaset Espana rose 6 per cent.
- The pan-European STOXX 600 index climbed to a new 11-month high to end up 1.1 per cent.
- UniCredit rose 15.9 per cent, its best day in more than six years, after unveiling plans to raise 13 billion euros in Italy’s biggest-ever share issue to shore up its balance sheet and shield itself from a broader banking crisis.
- Traders said the rise was exacerbated by short covering.
- UniCredit’s move comes at a difficult time, with ailing lender Monte dei Paschi di Siena at risk of failure, a new government just installed in Rome and early elections expected next year.
- Italy’s new prime minister Paolo Gentiloni said that his government would be ready to take action to support the country’s troubled banking sector.
- The surge in UniCredit shares helped Italy’s banking index rise 5.8 per cent to its highest close since end June, while Italy’s blue chip index outperformed the rest of Europe with a 2.5 per cent rise.
- Italian banks have been rallying since last week as investors covered short positions on expectations that a solution to rescue Monte dei Paschi would be found.
- Investors were also keeping an eye on the Federal Reserve’s two-day policy meeting from Tuesday. It is widely expected to hike rates for the first time in 2016, with markets pricing in a nearly 100 percent chance of a quarter percentage point rise.
- In focus will be the Fed’s statement and economic projections, which will be pored over for any sign of reaction to political outsider Donald Trump’s US presidential election win.
- Elsewhere, A. P. Moller-Maersk surged four per cent. The world’s biggest container shipper said it might consider selling assets or cutting dividends as it seeks to retain its credit rating.
- Asian shares were on tenterhooks on Tuesday as investors awaited the US Federal Reserve’s meeting for clues on the outlook for US monetary policy, while crude oil prices pulled back after their surge to 18-month highs.
- Japan’s Nikkei stock index slid 0.5 per cent as the dollar came off highs against the yen.
- Hong Kong stocks steadied after a tumble the previous day, though some investors stayed on the sidelines.
- The benchmark Hang Seng index added 0.1 per cent, to 22,446.70 points
- The Hong Kong China Enterprises Index inched up 0.2 per cent, to 9,719.94 points.
- China stocks erased early losses to end roughly flat on Tuesday after better-than expected November retail sales and factory output data.
- The blue-chip CSI300 index fell 0.1 per cent, to 3,405.04 points.
- The Shanghai Composite Index rose 0.1 per cent to 3,155.04 points.
- The S&P/NZX50 Index dropped 25.84 points, or 0.4 per cent, to 6,850.2.
Important News Events For Today
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