Wednesday: 5th July 2017
Each Market In Focus
The Australian share market looks set to open higher after the ASX posted its strongest session of the year on Tuesday.
At 7.00 a.m. AEST on Wednesday, the share price futures index was up six points, or 0.1 per cent, at 5,738.
The Australian market on Tuesday was buoyed by economic data showing better-than-expected retail spending figures.
The benchmark S&P/ASX200 index gained 99.3 points, or 1.75 per cent, to 5783.8 points, its strongest performance since November 10, when the market surged after the election of US President Donald Trump.
Retail spending rose 0.6 per cent in May, well ahead of market expectations, and continuing on from strong growth in April.
Markets in the the US were closed for the July 4 Independence Day public holiday, and European and Asia were weaker.
Locally, in economic news on Wednesday, the Ai Group Performance of Services Index (PSI) for month just ended is due out.
No major equities news is expected.
Meanwhile, the Australian dollar is lower after the Reserve Bank appeared not to be inclined to consider raising its interest rate, following its monthly board meeting on Tuesday.
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 New York Stock Exchange was closed on Tuesday because of the Independence Day public holiday.
- Gold prices overcame a stronger dollar to advance on Tuesday amid geopolitical tensions after North Korea said it had successfully test-launched an intercontinental ballistic missile.
- The precious metal was up 0.38% to $1,225.10 a troy ounce Tuesday morning.
- Copper, meanwhile, fell 0.43% to $5,889 a metric ton.
- Oil prices firmed up on Tuesday amid limited trading because of a public holiday in the U.S. and ahead of new figures on U.S. oil output.
- Brent crude, the global oil benchmark, rose 0.24% to $49.81 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 0.38% at $47.26 a barrel.
- Overall, crude has experienced modest price increases for about eight days in a row since falling into bear territory last month.
- The gains have come as the market examines data that show U.S. output may be slowing.
The Singapore dollar was little changed against the U.S. dollar late Tuesday amid volatile trading in the U.S. currency.
The U.S. dollar bought 1.3817 Singapore dollars near the close of the Asian trading day, compared with S$1.3809 around the same time on Monday.
The U.S. dollar shuffled between gains and losses ahead of the Independence Day holiday in the U.S. Several analysts said they expect the U.S. dollar to weaken as global central banks signal an end to easy monetary policy that will support their respective currencies.
However, the U.S. dollar has been holding its ground against major currencies this week after last week’s loss.
- The Australian dollar is lower after the Reserve Bank appeared not to be inclined to consider raising its interest rate.
- At 7.00 a.m. AEST on Wednesday, the Australian dollar was worth 76.04 US cents, down from 76.17 US cents on Tuesday.
- A spate of dealmaking news swept European stocks on Tuesday, with share in Worldpay soaring after approaches to buy the company helped mitigate a broad based pull back from the previous session’s strong gains.
- The pan-European STOXX 600 fell 0.3 per cent, in line with a dip in euro zone stocks and Britain’s FTSE index.
- The FTSE 100 ended the day 0.27 per cent higher at 7,357.23 points,
- On Monday, European shares had their strongest day since April 24, when Emmanuel Macron won the first round of France’s presidential election. The closure of the US market for the July 4 national holiday also meant volumes were lower than usual.
- But dealmaking was back with a vengeance as a key driver of individual share moves. Payments company Worldpay shares soared 27.7 per cent to a record high after it received rival takeover approaches from credit card tech firm Vantiv and JPMorgan. This came after Danish rival Nets said on Monday it had received offers. Nets and another German rival Wirecard rose more than four per cent.
- A further boost to the sector came from news that the European Commission gave its blessing to a state bailout of Monte dei Paschi di Siena, paving the way for a deep restructure of the troubled lender.
- Asian shares turned lower on Tuesday as earlier gains were quashed by tensions on the Korean peninsula after North Korea fired a missile that landed in Japanese waters, deepening concerns over the isolated nation’s nuclear capabilities.
- European shares were also set to open in the red, with financial spreadbetters expecting Britain’s FTSE 100 and Germany’s DAX to start off 0.2 per cent each, and France’s CAC 40 down 0.3 per cent.
- MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6 per cent after rising earlier.
- Japan’s Nikkei also surrendered earlier gains to drop 0.1 per cent, and South Korea’s KOSPI extended losses to trade 0.6 per cent lower.
- The Shanghai Composite Index lost 13.11 per cent to 3,182.80 points.
- North Korea test-launched an intermediate-range ballistic missile on Tuesday, South Korean and US officials said, days before leaders from the Group of 20 nations are due to discuss steps to rein in Pyongyang’s weapons programs. The missile flew 930 kilometres before landing in Japan’s Exclusive Economic Zone, the South Korean military and Japanese government said.
- Tokyo strongly protested what it called a clear violation of UN resolutions, and Japanese Prime Minister Shinzo Abe said he will ask the presidents of China and Russia to play more constructive roles in efforts to stop Pyongyang’s arms program.
- The South Korean won dropped 0.4 per cent to 1,151 won to the dollar as of 0532 GMT. The nervous mood pushed the safe-haven yen up 0.4 per cent to 113.02 yen per dollar.
- New Zealand shares were higher on Tuesday, led by Spark New Zealand and Westpac Banking Corp.
- The S&P/NZX 50 Index gained 0.4 per cent, or 32.21 points, to 7,620.64.
Important News Events For Today
“Well done is better than well said”. – Benjamin Franklin
*Now you know everything.*