Wednesday: 26th April 2017
Each Market In Focus
- The Australian share market looks set to open higher following sharp gains on Wall Street on the back of solid company earnings results.
- At 8.00 a.m. AEST on Wednesday, the share price futures index was up 25 points, or 0.43 per cent, at 5,899.
- In the US, the Nasdaq Composite has hit a record high, while the Dow Jones Industrial Average and S&P 500 brushed against recent peaks as strong earnings underscored the health of corporate America.
- The Nasdaq finished 0.7 per cent higher overnight while DJIA jumped 1.12 per cent and the S&P 500 rose 0.61 per cent.
- Locally, in economic news on Wednesday, investors are keenly awaiting the release of the first-quarter consumer price index.
- Consumer prices are expected to have inched up in the March quarter, mainly on the back of higher fuel and food costs, taking headline inflation into the Reserve Bank of Australia’s target band for the first time in years.
- Mining giant BHP Billiton is scheduled to issue a third quarter operational review.
- The Australian market, like New Zealand, was closed on Tuesday for the Anzac Day holiday.
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. The filter uses an above 50 cent price filter, and the codes in Blue are on our watch list. ( 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. The filter uses an above 50 cent price filter, and the codes in Blue are on our watch list. ( source Metastock)
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- The Nasdaq Composite has hit a record high, while the Dow and S&P 500 brushed against recent peaks as strong earnings underscored the health of corporate America.
- Caterpillar closed up 7.9 per cent at $US104.42 on Tuesday after earlier hitting a multi-year high of $US104.89 and McDonald’s jumped 5.6 per cent to $US141.70, both after beating profit estimates.
- The Nasdaq hit a record level of 6036.02, breaching 6000 for the first time, powered by gains in index heavyweights Apple and Microsoft.
- The index first touched the 5000 mark on March 2000 as tech stocks bubbled before tumbling nearly 80 per cent through October 2002.
- The Dow Jones Industrial Average rose 232.23 points, or 1.12 per cent, to 20,996.12
- The S&P 500 gained 14.46 points, or 0.61 per cent, to 2388.61
- The Nasdaq Composite added 41.67 points, or 0.7 per cent, to 6025.49.
- The S&P 500 touched its day’s high after the Wall Street Journal reported US President Donald Trump’s tax proposal, expected on Wednesday, would include a slash to 15 per cent from 39.6 per cent on many owner-operated companies.
- Tuesday’s gains built on a day-earlier rally, which was driven by the victory of centrist candidate Emmanuel Macron in the first round of the French presidential election.
- Polls showed Macron, the market’s favourite, was likely to beat his far-right rival Marine Le Pen in a deciding vote on May 7.
- Meanwhile, gold for June delivery slipped 0.8% to $1,267.20 a troy ounce, with traders moving away from the safe haven in the aftermath of Sunday’s first-round French presidential election vote, which saw centrist candidate Emmanuel Macron progress to the May 7 runoff vote. Copper for July delivery settled up 1% to $2.5910 a pound on the Comex division of the New York Mercantile Exchange, its highest close since April 17.
- IRON ORE: $70.44 -0.23( April contract )
- Oil prices halted their downward slide but remained below the $50 mark amid doubts that the global crude glut is being drained.
- U.S. crude futures settled up 33 cents, or 0.67%, at $49.56 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 50 cents, or 0.97%, to $52.10 a barrel on ICE Futures Europe.
- The move higher came after a six day losing streak, and reversed losses in earlier trading.
- The Canadian dollar and Mexican peso slid, as the U.S. administration’s move to impose tariffs on Canadian lumber exports added to trade tensions.
- The loonie slid 0.5% against the U.S. dollar after touching its lowest level since February 2016 earlier in the day. The Mexican peso fell 0.9% against the greenback.
- The Trump administration said late Monday that it would impose tariffs on Canadian softwood lumber exports as part of a decades-long dispute about Canadian provinces allegedly allowing loggers to cut trees down at improperly subsidized costs and sell them at lower prices.
- The move comes amid heightened tensions over the future of North American trade.
- The peso fell to an all-time low after the November election as investors feared Mr. Trump’s plans to reshape NAFTA and build a wall on the border would hurt the economy.
- Meanwhile, the euro continued to firm after first-round voting in the French election eased concerns about the future of the currency.
- The euro gained 0.6% against the dollar, adding to a 1.3% gain on Monday. In voting over the weekend, centrist candidate Emmanuel Macron took the lead over far-right candidate Marine Le Pen, who had threatened to pull France out of the euro. The candidates will face off in a run-off in May.
- The Australian dollar is lower against the US dollar following the surprise decision by US President Donald Trump to slap tariffs on Canadian lumber entering the US.
- At 7.00 a.m. AEST on Wednesday, the Australian dollar was worth 75.34 US cents,down from 75.69 US cents on Tuesday.
- Deal-making and earnings underpinned European stock markets on Tuesday as the focus shifted back to fundamentals and away from politics, for now, with the pan-European STOXX 600 index scoring its fifth straight session of gains.
- The STOXX 600 ended up 0.2 per cent, after briefly hitting its highest level since August 2015 during the session. It is up 7.1 per cent so far this year.
- A win for centrist candidate Emmanuel Macron in the first round of the French presidential election sparked a global rally in risk assets on Monday as investors breathed a sigh of relief over the reduced chances of a nationalist upset.
- France’s CAC 40, which rallied more than four per cent on Monday, ended up 0.17 per cent.
- Earnings were firmly in focus, with shares in AMS surging 19.6 per cent to a record high after the chipmaker reported first quarter revenues above its own forecast and added that it might raise its mid-term revenue growth target.
- Asian equities hit a near two-year high on Tuesday, buoyed by a jump in risk appetite following the centrist victory in the first round of the French presidential election that also lifted the euro and pressured safe-haven assets.
- MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6 per cent, hovering near the highest level since June 2015 hit earlier in the session, on its fourth straight day of gains.
- Japan’s Nikkei rose more than 1 per cent to a three-week high. South Korea’s KOSPI also advanced 0.7 per cent to the highest level since April 2015.
- Chinese shares rose 0.1 per cent, while Hong Kong’s Hang Seng gained 0.9 per cent.
- The Chinese index posted its worst day in 2017 on Monday amid signs Beijing will tolerate further market volatility as regulators clamp down on shadow banking and speculative trading.
- Indonesian stocks opened at an all-time high, and Malaysian stocks hit their highest level since May 2015.
- New Zealand, like Australia was closed for the Anzac Day holiday.
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