Wednesday: 26th July 2017
Each Market In Focus
- The Australian market looks set to open higher after Wall Street’s S&P 500 hit an all-time high overnight.
- At 7.00 AEST on Wednesday, the share price futures index was up 40 points, or 0.71 per cent, at 5,703.
- Locally, in economic news on Wednesday, the official inflation figures for the June quarter are due out, and Reserve Bank Governor Philip Lowe gives a speech at the Anika Foundation Luncheon in Sydney entitled Labour Market and Monetary Policy.
- The Australian market on Tuesday closed higher, led by banking, mining, energy and healthcare stocks.
- Meanwhile, the Australian dollar is almost steady against its US counterpart.
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)
Scans Powered by Metastock. Click here for more information
The S&P 500 climbed to an all-time high on Tuesday on a heavy day of corporate results highlighted by well-received reports from McDonald’s and Caterpillar and gains for bank shares.
The Nasdaq also managed to set a record high despite declines in Google parent Alphabet after its results. Alphabet shares ended down 2.9 per cent.
Shares of McDonald’s rose 4.8 per cent after the fast-food chain reported strong global sales.
Caterpillar shares surged 5.9 per cent after the heavy equipment maker raised its full-year outlook for the second time this year.
Those stocks spurred the Dow industrials, leaving the index close to record territory.
Data showing a jump in US consumer confidence amid optimism over the labour market added to the bullish sentiment.
The Dow Jones Industrial Average rose 100.26 points, or 0.47 per cent, to 21,613.43
The S&P 500 gained 7.17 points, or 0.29 per cent, to 2,477.08
The Nasdaq Composite added 1.37 points, or 0.02 per cent, to 6,412.17.
The future path of interest rates will be in focus on Wednesday with the expected statement from the Federal Reserve.
- Copper prices rose to their highest level in more than two years Tuesday, on optimism that accelerating growth in Asia and Europe will stoke demand for the industrial metal.
- Copper for September delivery closed up 4.1% at $2.8405 a pound on the Comex division of the New York Mercantile Exchange, the highest price since May 2015.
- The International Monetary Fund on Monday revised its 2017 outlook for China, the world’s largest copper consumer, while also raising growth estimates for Europe and Japan. Many investors look to copper as a barometer for the global economy’s health, as the metal is a key component in manufacturing and construction.
- China accounts for some 45% of global copper demand.
- The IMF left its global growth forecast unchanged and trimmed its forecast for U.S. growth in 2017 and 2018.
- Copper prices also have received a boost from a weakening dollar. Like many commodities, copper is priced in the U.S. currency and becomes more affordable to foreign buyers when the dollar declines.
- A rally in crude prices buoyed copper as well. Many investors trade oil and copper as part of a single commodities basket, with a greater share devoted to oil.
- In precious metals, gold for August delivery closed down 0.2% at $1,252.10 a troy ounce.
- IRON ORE: $68.00 +1.60 ( August contract )
- Oil prices rallied Tuesday to notch their largest one-day dollar and percentage gain since December.
- Prices found support on the back of news Monday that Saudi Arabia plans to cut its crude exports and Nigeria agreed to limit its production.
- Expectations for a slowdown in U.S. production, after Anadarko Petroleum cut its full-year spending budget, also contributed to price gains.
- September WTI crude rose $1.55, or 3.3%, to settle $47.89 a barrel on the New York Mercantile Exchange.
- The U.S. dollar put in a mixed performance, weakening against the euro and pound and gaining against the yen, leaving a broad index tracking the greenback nearly unchanged ahead of a two-day Federal Reserve meeting.
- Market reaction to upbeat consumer confidence and home-price data were mostly muted.
- Consumer confidence rose in July to the second highest level in 16 years, while U.S. home-price growth eased slightly but stayed strong as demand outweighed supply throughout the housing market. Economic data have been softer in the first half of the year, but the Fed brushed aside weaker inflation as transitory.
- However, the Fed may tinker with its assessment of inflation after a sharp deceleration recently, but still a major course correction to policy isn’t in the cards.
- The Federal Open Market Committee decision will come at 2 p.m. Eastern on Wednesday.
- The Australian dollar is slightly lower against its US counterpart, as it trades in a tight range ahead of the release of local inflation figures.
- At 7.00 AEST on Wednesday, the Australian dollar was worth 79.35 US cents, down from 79.41 US cents on Tuesday.
Strong results and buoyant basic resource stocks boosted Britain’s blue-chip index on Tuesday and small-cap luxury shoemaker Jimmy Choo soared 17 per cent after an agreed bid by US retailer Michael Kors.
The FTSE 100 jumped 0.8 per cent, erasing the previous session’s losses as results from Informa and Segro impressed.
Media company Informa rose as much as seven per cent to a record high before paring some gains and ending up 2.7 per cent.
Informa’s focus on exhibitions space has helped it outperform the broader European media sector, one of the worst-performing in the year-to-date.
Jimmy Choo was thrown into the spotlight, hitting a record high after Michael Kors swooped in to buy it for $1.2 billion. Its shares rose 17 per cent.
The pan-European STOXX 600 index rose 0.4 per cent, holding onto gains seen earlier in the session, as Wall Street opened higher and a key gauge of expected volatility plunged to its lowest in more than 23 years.
Germany’s DAX rose 0.45 per cent to 12,264.31.
- Asian share benchmarks sagged on Tuesday as investors awaited a slew of corporate earnings reports. A meeting of the Federal Reserve and caution over potential twists and turns in US politics kept most indexes trading within a narrow range.
- Japan’s Nikkei 225 index slipped 0.1 per cent to 19,955.20, and the Shanghai Composite index slipped 0.21 per cent to 3,423.6894.
Important News Events For Today
“Perfection is not attainable, but if we chase perfection we can catch excellence”. – Vince Lombardi
*Now you know everything.*