Wednesday: 31st May 2017
Each Market In Focus
- The Australian share market looks set for a soft open after a negative lead from overseas.
- At 8.00 a.m. AEST on Wednesday, the share price futures index was down four points, or 0.07 per cent, at 5,718.
- US stocks inched lower after Wall Street reopened following the Memorial Day holiday, with the S&P 500 retreating slightly from a record, as weakness in the energy and financial sectors outweighed gains in technology shares.
- The Nasdaq and the Dow also fell.
- London’s FTSE and Japan’s Nikkei dropped 0.4 and 0.5 per cent respectively, while China, Hong Kong and Taiwan markets were closed for holidays.
- The Australian market turned around with an afternoon rally on Tuesday after bargain hunters helped drive a rebound for the major banks.
- The benchmark S&P/ASX200 rose 10.8 points, or 0.19 per cent, to 5,717.9 points.
- The broader All Ordinaries index was up 8.3 points, or 0.14 per cent, at 5,756 points.
- Meanwhile, the Australian dollar has gained against the greenback after US Federal
- Reserve governor Lael Brainard said soft inflation may yet make her reassess monetary policy.
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 inched lower, with the S&P 500 retreating slightly from a record, as weakness in the energy and financial sectors outweighed gains in technology shares.
Oil prices fell to keep US crude below the $US50 a barrel mark on concerns output cuts by the world’s big exporters may not be sufficient to lessen a global glut and signs of resurgent output in Libya.
The energy sector’s 1.31 per cent fall made it the worst performer among the major S&P 500 sectors. Exxon was down 0.6 per cent.
Financial stocks, down 0.8 per cent, also supplied some downward pressure. JPMorgan fell 1.7 per cent and Bank of America lost 1.4 per cent as the two biggest drags on the S&P 500.
US consumer spending recorded its biggest increase in four months in April and monthly inflation rebounded, pointing to firming domestic demand that could allow the Federal Reserve to raise interest rates next month.
Dallas Fed head Robert Kaplan told CNBC that while he was concerned about the recent economic data, he expected two more rate hikes in 2017.
Fed Governor Lael Brainard said a hike is probably coming soon, though the central bank may want to delay if inflation remains soft.
The Dow Jones Industrial Average fell 50.81 points, or 0.24 per cent, to 21,029.47
The S&P 500 lost 2.91 points, or 0.12 per cent, to 2,412.91
The Nasdaq Composite dropped 7.01 points, or 0.11 per cent, to 6,203.19.
The technology sector rose 0.31 per cent, boosted by gains in Apple and Microsoft, both up 0.6 per cent.
About 5.68 billion shares changed hands in US exchanges, below the 6.69 billion daily average over the last 20 sessions.
- Gold for August delivery was down 0.5% at $1,265.70 a troy ounce. Political strife in the U.S. and upcoming elections in the U.K. have stoked demand for the safe haven metal, pushing prices to a nearly one-month high last week. Copper prices edged lower, weighed down by a drop in the price of oil.
- Copper for July delivery closed down 0.1% at $2.5640 a pound on the Comex division of the New York Mercantile Exchange.
- IRON ORE: $57.85 -0.32( June contract )
- Oil futures fell, amid persistent doubts about whether OPEC’s decision to extend production cuts last week will be enough to alleviate the global supply glut.
- U.S. crude futures settled down 14 cents, or 0.28%, at $49.66 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 45 cents, or 0.86%, to $51.84 a barrel on ICE Futures Europe.
- The U.S. dollar slipped after mixed economic data and continued political tension.
- The WSJ Dollar Index, which measures the U.S. currency against 16 others, fell 0.2% to 88.67. The dollar fell against the euro but rose against many oil-dependent currencies as crude prices continued to slide.
- The Australian dollar has gained against the greenback after US Federal Reserve governor Lael Brainard expressed concerns over continuing soft inflation.
- At 7.00 a.m. AEST on Wednesday, the local unit was worth 74.67 US cents, up from 74.38 US cents on Tuesday.
European shares fell on Tuesday, marking their fourth straight day of losses, with banks leading the decline on fresh political jitters and following a downgrade by a top global broker.
The pan-European STOXX 600 index slipped 0.2 per cent.
The euro zone blue chips index, in which banks have a higher weighting, fell 0.6 per cent while Britain’s FTSE dropped 0.4 per cent.
The end of a surprisingly strong corporate earnings season in Europe has left investors, who have piled back into the region so far this year, searching for the next catalyst to keep the year-to-date rally going and support valuations that are now above their historical averages.
Worries about early elections in Italy has spurred some profit-taking since last week most notably in sectors and stocks that have outperformed such as banks.
Euro zone banks ended the day 1.6 per cent lower with Spain’s Banco Santander and BBVA the biggest drags.
A Deutsche Bank downgrade on the sector soured sentiment.
In a note to clients, they said the sector was among the most sensitive to swings in euro area growth, which they expected to fade, and that prices were no longer compelling.
The regional banking index is now down seven per cent since it hit a 1-1/2 year high on May 8.
The broader market is down two per cent since that day.
In spite of weakness seen over the past sessions, the STOXX benchmark is set to end May in positive territory, near two-year highs and scoring its fourth straight month of gains.
In the UK, shares of British Airways owner IAG fell 2.8 per cent on the first day of trading following massive weekend disruption to flights due to an IT outage.
Elsewhere among airlines, Ryanair jumped 3.8 per cent after Europe’s biggest carrier by passengers reported a record annual profit that was in line with market expectations.
- China, Hong Kong and Taiwan markets were closed for holidays on Tuesday. Japan’s Nikkei dropped 0.5 per cent, dragged down by a stronger yen.
- South Korea’s KOSPI fell 0.6 per cent, and the Korean won lost 0.2 per cent against the dollar.
- South Korea said on Tuesday it had conducted a joint drill with a US supersonic B-1B Lancer bomber, after North Korea’s state media accused the US of staging a drill to practise dropping nuclear bombs on the Korean peninsula.
- The S&P/NZX50 Index dropped 0.79 points, or 0.01 per cent, to 7411.95.
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