Wednesday: 19th July 2017
Each Market In Focus
The Australian share market looks set to open lower, following its previous session’s fall and mimicking Wall Street, where the Dow was dragged into the red.
At 7.00 AEST on Wednesday, the share price futures index was down 8 points, or 0.14 per cent, to 5,623 points.
Despite a muted reaction from stocks, news of the healthcare bill’s collapse sent the US dollar to a 10-month low against a basket of major currencies.
The falling greenback plus unexpected commentary from the Reserve Bank of Australia, indicating a potentially more open mind to rate hikes, combined to push the Aussie dollar to its highest level in more than two years.
The local currency surpassed 79 US cents for the first time since May, 2015 and was trading at 79.16 US cents at 1700 AEST on Tuesday, having retreated from a session high of 79.24 US cents.
The spike however, hit export oriented companies and sent the local share market sharply lower.
The financial sector led broad-based losses and combined with weakness in the materials and energy sectors, dragged the benchmark S&P/ASX200 down 1.2 per cent to 5,687.4 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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- Major US stock indexes were mixed as Netflix’s rally kept the Nasdaq Composite in the black while Goldman Sachs weighed on the Dow, with earnings taking investors’ focus.
- The Dow Jones Industrial Average fell 57.74 points, or 0.27 per cent, to 21,571.98 on Tuesday
- The S&P 500 gained 0.29 points, or 0.01 per cent, to 2,459.43
- The Nasdaq Composite added 24.66 points, or 0.39 per cent, to 6,339.09.
- The Nasdaq was on track to post its eighth consecutive session of gains, which would be longest streak since its a 10-day string in February 2015.
- The Dow was dragged lower by a drop in Goldman Sachs, which fell 2.4 per cent to $223.77 after it reported a worse slump in bond trading revenue than many analysts had expected and posted the weakest commodities results in its history as a public company.
- Netflix rose 14.1 per cent to $184.43 a day after it crushed Wall Street forecasts by reporting 5.2 million new streaming customers in the second quarter.
- Despite the muted reaction from stocks, news of the healthcare bill’s collapse sent the US dollar to a 10-month low against a basket of major currencies.
Gold prices finished higher, with a sharply weaker U.S. dollar sending prices for the yellow metal up for a third session in a row to their highest level of the month so far.
August gold climbed $8.20, or 0.7%, to settle at $1,241.90 an ounce.
Silver for September delivery added 16.9 cents, or 1.1%, at $16.268 an ounce.
- IRON ORE: $67.39 +0.14 ( August contract )
- Oil prices rallied back toward six-week highs intraday on a slate of factors, including a falling dollar and more momentum behind the idea that the worst of a longstanding glut may be past.
- U.S. crude for August delivery recently gained 41 cents, or 0.9%, to $46.43 a barrel on the New York Mercantile Exchange.
- Brent, the global benchmark, gained 49 cents, or 1%, to $48.91 a barrel on ICE Futures Europe.
- The U.S. dollar tumbled intraday as the Republican effort to dismantle the Affordable Care Act fell apart, a fresh blow to investors who hoped the Trump administration’s pro-growth agenda would bolster the U.S. currency.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, fell 0.6% to 86.87, its lowest intraday level since early October.
- The U.S. dollar slid 0.6% against the yen, 0.9% against the euro and 0.3% against the Mexican peso.
- The U.S. dollar began its decline late Monday after two more GOP senators announced they would oppose the bill to repeal and replace the health law, leaving the party short of the votes needed to pass the bill.
- The failure to make progress on President Donald Trump’s legislative priority has renewed doubts about the administration’s ability to deliver on other campaign goals, including plans for fiscal stimulus, tax overhaul and deregulation.
- Expectations that those policies would accelerate U.S. economic growth and allow the Federal Reserve to raise interest rates helped propel the dollar to a 14-year-high after the U.S. election in November.
- The U.S. dollar has now given up all of those gains and on Tuesday traded more than 1% below its election-day level.
- The Australian dollar has held on to its two-year high against its US counterpart, on the back of an upbeat assessment of the economy in the minutes of the Reserve Bank of Australia’s July policy meeting.
- At 7.00 AEST on Wednesday, the local currency was worth 79.17 US cents, from 79.15 US cents on Tuesday.
British shares edged down after falls in financial stocks outweighed the effect of easing inflation and positive earnings updates from Royal Mail and British Land.
The FTSE 100 ended down 0.2 per cent but outperformed heavy losses among European stocks thanks to a weaker pound, which benefits major exporting companies.
Sterling dropped as investors adjusted interest rate expectations after inflation unexpectedly eased in June for the first time since October, surprising the market and adding to the likelihood the Bank of England will keep interest rates on hold in August.
- Asian shares stepped back from more than two-year highs while the dollar extended losses as passage of a US healthcare bill grew doubtful, and as investors bet the Federal Reserve will be more cautious about raising interest rates.
- Japan’s Nikkei stock index dropped 0.6 per cent to end the day a hair below the key 20,000 level, as markets resumed trading after a public holiday on Monday and caught up to the resurgent yen.
- Hong Kong stocks rose for a seventh straight session as gains in the technology and energy sectors offset losses in financial stocks.
- The Hang Seng index finished 0.2 per cent, or 54.36 points higher at 26,524.94.
- Meanwhile, China stocks steadied, aided by strong gains in cyclicals, even as investors hunted for bargains after an intense sell-off in small-caps in the previous session.
- The blue-chip CSI300 index rose 0.1 per cent, to 3,667.18 points, while the Shanghai Composite Index added 0.3 per cent to 3,187.57 points.
- New Zealand shares hit a record high as weaker CPI numbers bolstered shares, with dividend stocks such as Mercury New Zealand and Trustpower benefiting.
- The S&P/NZX50 Index gained 7.76 points, or 1 per cent, to 7707.33. Within the index, 28 stocks rose, 15 fell and seven were unchanged.
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