Wednesday: 16th August 2017
Each Market In Focus
- The Australian market looks set to open fractionally in the red, after Wall Street closed little changed with stronger-than-expected US retail sales figures failing to counter disappointing results from retail stocks.
- At 7.00 AEST on Wednesday, the share price futures index was down five points, or 0.09 per cent, at 5699.
- Locally, in economic news on Wednesday, the Australian Bureau of Statistics is due to release the June quarter wage price index figures.
- In equities, Fairfax Media, Seven West Media, SEEK, Stockland, CSL and Origin Energy are among the companies expected to post full-year results on Wednesday.
- Woodside Petroleum, Westfield and Iluka Resources are slated to post half-year results.
- Meanwhile, the Australian Taxation System – the 2017 Great Debate is on in Sydney.
- Focusing on the key issues facing the Australian Tax System, expert presenters will debate how to improve key areas of Australia’s tax system and key arguments for and against each change.
- The Australian market on Wednesday rose as the majority of sectors posted gains, though Domino’s Pizza plunged after failing to meet its profit forecast.
- The benchmark S&P/ASX200 index was up 27.1 points, or 0.47 per cent, at 5,757.5 points.
- The the broader All Ordinaries index was up 25.4 points, or 0.44 per cent, at 5,804 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)
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US stocks have ended little changed as declines in Home Depot and other retailers’ results offset upbeat US retail sales data.
Home Depot’s stock was down 2.7 per cent and was the biggest drag for both the S&P 500 and the Dow.
Although the home improvement chain reported strong earnings and raised its forecast, investors appeared to be worried about supply constraints in the housing market that could be a drag on Home Depot’s future earnings.
The S&P 500 consumer discretionary index, down 0.9 per cent, also took a hit from a steep fall in the shares of Coach and Advance Auto Parts after disappointing results.
The S&P 500 retail index was down 1.6 per cent.
However, US retail sales recorded their biggest increase in seven months in July as consumers boosted purchases of motor vehicles as well as discretionary spending.
The data helped the dollar touch its highest level against a basket of major currencies in nearly three weeks.
The Dow Jones Industrial Average was up 0.02 per cent to 21,998.99, the S&P 500 lost 0.05 per cent to 2,464.61 and the Nasdaq Composite dropped 0.11 per cent to 6,333.01
- Gold prices fell for the second straight day, as cooling tensions between the U.S. and North Korea and a stronger dollar continued weighing on the precious metal.
- Gold for December delivery closed down 0.8% at $1,279.70 a troy ounce on the Comex division of the New York Mercantile Exchange, slightly paring earlier losses after falling as much as 1.4% earlier in the session.
- Even with the modest recovery, gold had its worst day in more than a month.
- IRON ORE: $70.48 -0.12 ( September contract )
- Oil prices edged lower, weighed down by concerns over demand and a rising U.S. dollar.
- Light, sweet crude for September delivery settled down 4 cents, or 0.1%, to $47.55 a barrel on the New York Mercantile Exchange, paring losses after trading as low as $47.02.
- Brent, the global benchmark, rose 7 cents, or 0.1%, to $50.80 a barrel.
- Prices fell for the second day in a row after Chinese refiners cut back on crude processed and a strong dollar weighed on commodities prices.
- The summer rally that took prices up to $50 a barrel has lost steam, even as the amount of oil in U.S. storage has continued to decline.
The U.S. dollar surged intraday after better-than-expected retail sales data bolstered confidence in the U.S. economy.
The WSJ Dollar Index, which measures the U.S. currency against 16 others, rose 0.6% to 86.75.
A Commerce Department report showed sales at retailers and restaurants jumped 0.6% in July – the strongest sales growth all year.
The retail sales report follows a string of weak inflation readings, including Friday’s weaker-than-expected consumer price report, that have raised concerns about the health of the economy and the path for higher interest rates.
Investors are now pricing in a 50% chance that the Fed raises rates again this year, up from 37% a day earlier.
- The Australian dollar is fallen sharply against its US counterpart which has lifted on strong US data.
- At 7.00 AEST on Wednesday, the Australian dollar was worth 78.20 US cents, down from 78.47 US cents on Tuesday.
European shares rose modestly on Tuesday, recovering further as geopolitical tensions eased in holiday-thinned trading, with airlines supporting gains after Air Berlin filed for insolvency, prompting a rush from Lufthansa and peers to snap up its assets.
The pan-European STOXX 600 index was up 0.1 per cent, with gains capped by a drop in the basic resources and energy sectors after oil prices gave up earlier gains.
European blue chips gained 0.3 per cent, however, while Germany’s DAX ticked 0.1 per cent higher to 12,177.04.
London’s FTSE100 gained 0.4 per cent to 7,383.85.
- Asian shares rose on Tuesday after North Korea’s leader signalled that he would delay plans to fire a missile near Guam, easing tensions with the US and prompting investors to move back into beaten-down riskier assets.
- MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.3 per cent higher in afternoon trade.
- Helped as well by a weaker yen, Japan’s Nikkei stock index finished up 1.1 per cent at 19,753.31, a day after skidding 1 per cent to a three-and-a-half-month low.
- Hong Kong shares finished down, falling late in the session after profit-taking pressures overcame support from a strong performance in banking shares.
- The Hang Seng index fell 0.3 per cent, to 27,174.96 points, while the China Enterprises Index gained 0.3 per cent, to 10,738.00 points.
- The China Enterprises Index had risen as much as 1.4 per cent in the morning session, and the Hang Seng index rose as much as 0.7 per cent.
- The declines interrupted what looked like a continuation of Monday’s market rebound, following losses in global shares last week amid fears over rising tensions between the United States and North Korea.
- Chinese shares closed higher, but weakening sentiment ate away at gains from the morning session, even as stronger profits at commercial banks helped to support banking shares.
- The blue-chip CSI300 index rose 0.3 per cent, to 3,706.06 points, while the Shanghai Composite Index gained 0.4 per cent, to 3,251.26 points.
- The S&P/NZX50 Index advanced 0.7 per cent to 7813.74.
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