Wednesday: 17th May 2017
Each Market In Focus
The Australian share market looks set to open flat despite another record close for the Nasdaq.
At 7.00 a.m. AEST on Wednesday, the local share price futures index was up one point, or 0.02 per cent, at 5,855.
In local news on Wednesday, the Australian Bureau of Statistics is set to release its wage price index for the last quarter, as well as its lending finance figures for March.
Dulux Group will release its first-half results.
Oil prices were little changed overnight as the market awaited weekly US inventory figures and as Kuwait and other OPEC members joined top producers Saudi Arabia and Russia in support of prolonging supply cuts through March 2018 to reduce a global crude glut.
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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- The S&P 500 and the Dow ended the session flat after mixed economic data and retail earnings, while the Nasdaq had another record close with help from technology stocks.
- US manufacturing production on Tuesday showed its biggest increase in more than three years in April, bolstering a view that economic growth picked up early in the second quarter despite a surprise decline in homebuilding.
- Investors were also cautious about potential delays to the government’s tax and regulation reform agenda after reports late Monday that President Donald Trump disclosed highly classified information to Russia’s foreign minister about a planned Islamic State operation.
- The Dow Jones Industrial Average closed down 2.19 points, or 0.01 per cent, to 20,979.75, and the S&P 500 lost 1.65 points, or 0.07 per cent, to 2,400.67, easing from an intraday record high of 2,405.77.
- The Nasdaq Composite added 20.20 points, or 0.33 per cent, to 6,169.87, a record close for the index.
- Only two of the 11 major S&P 500 sectors closed higher, with technology providing the biggest boost. The sector rose 0.5 per cent, with an outsized boost from Microsoft , which rose two per cent.
- The S&P’s financial sector ended the day with a 0.2-per cent gain. Utilities were the S&P’s biggest decliner of the day with a 0.8-per cent drop. UnitedHealth and Pfizer were the S&P’s biggest drags.
- Gold prices rose for the fifth session in a row, boosted by a weaker U.S. dollar and geopolitical concerns.
- Gold for June delivery settled up 0.5% at $1,236.40 a troy ounce on the Comex division of the New York Mercantile Exchange, its highest close since May 3.
- Meanwhile, copper for July delivery settled up 0.5% at $2.5505 a pound in New York.
- IRON ORE: $68.80 +3.72%( May contract )
Oil prices are holding near unchanged intraday with concerns about strong imports to the U.S. erasing earlier gains tied to optimism about extended production cuts from the world’s biggest exporters.
Light, sweet crude for June delivery recently gained 3 cents, or 0.1%, to $48.88 a barrel on the New York Mercantile Exchange.
Brent, the global benchmark, rose 4 cents, or 0.1%, to $51.86 a barrel on ICE Futures Europe.
Both had posted addition gains of about another 40 cents earlier in the morning before retreating.
- The U.S. dollar slipped to its lowest level in seven months intraday amid political uncertainty in the U.S. and weak economic data.
- The ICE Dollar Index, which gauges the U.S. currency against a basket of 6 others, was recently down 0.7% at 98.22, its lowest level since early November.
- Investors worry that a string of controversies may make it more difficult for U.S. President Donald Trump to push through pledged tax cuts and infrastructure spending.
- Fueling their concerns were reports late Monday that Mr. Trump divulged sensitive intelligence information to Russian officials, potentially compromising a U.S. ally.
- Last week, Mr. Trump fired Federal Bureau of Investigation Director James Comey, another controversial move.
- Weaker-than-expected housing data also weighed on the U.S. currency. U.S. new-home construction in April declined modestly for the third time in four months, the Commerce Department said.
The Australian dollar inched higher against the US dollar, which fell overnight partly on concerns about the US administration.
At 0630 AEST on Wednesday, the local unit was worth 74.30 US cents, up slightly from 74.24 US cents on Tuesday.
- European shares ended little changed on Tuesday as disappointing earnings updates weighed on banks and pharma stocks, but a well-received outlook from Vodafone helped Britain’s FTSE 100 touch a record high.
- Germany’s DAX also hit a fresh all-time peak before reversing course to end flat.
- The pan-European STOXX 600 index ended little changed, while France’s CAC fell 0.2 per cent.
- The FTSE 100 index rose 0.9 per cent, however, buoyed by a near four per cent rise in Vodafone as investors overlooked its 6.1 billion euro ($A9.1 billion) net loss for the year through March and focused instead on its forecast for earnings growth in the current year.
- Analysts at Jefferies highlighted Vodafone’s strong cost reduction as supporting its confident dividend growth guidance.
- Vodafone lifted Europe’s telecoms sector, which is up 4.8 per cent so far this year but remains among the weakest sectoral performers, and has underperformed a 9.6 per cent gain in the broader STOXX 600 index.
- Healthcare was weakened by a 6.8 per cent drop in BTG’s shares after the British healthcare firm published its full year figures, disappointing with a slower-than-expected growth forecast.
- Likewise disappointing updates also hit shares in budget airline easyJet, lender CYBG and support services firm DCC.
- Of the 76 per cent of companies that have reported first-quarter updates, 66 per cent have beaten analysts’ expectations, pointing to earnings growth of around 20 per cent, according to Thomson Reuters I/B/E/S data.
- Banking stocks were weak, with UBS down more than two per cent, extending losses from the previous session after Singapore sovereign wealth fund GIC Private Limited cut its stake in the Swiss bank at a loss.
- Europe’s energy sector provided support earlier in the session as the oil price rose on expectations of extended supply cuts, before easing to trade flat.
The Shanghai Composite Index fell 0.4 per cent to 3,078.60 points and Hong Kong’s Hang Seng shed 0.2 per cent to 25,308.29.
Chinese government data showed growth in industrial activity, credit, investment and housing sector activity decelerated in April.
That added to indications growth in the world’s second-largest economy peaked in the first quarter and is declining.
Chinese leaders are tightening access to credit to reduce reliance on debt and investment but April’s downturn was sharper than forecast.
Tokyo’s Nikkei 225 gained 0.2 per cent to 19,902.58 and benchmarks in South Korea, Malaysia, Thailand and the Philippines also rose.
The S&P/NZX 50 index fell 22 points or 0.3 per cent to 7407.61.
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