Wednesday: 7th June 2017
Each Market In Focus
The Australian market looks set to open higher, ignoring Wall Street’s negative lead, a day after the Reserve Bank of Australia kept its interest rate on hold and ahead of national accounts, including gross domestic product, data.
At 7.00 a.m. AEST on Wednesday, the share price futures index was up 15 points, or 0.26 per cent at 5,682.
Locally, in economic news on Wednesday, the Australian Bureau of Statistics is due to release March quarter national accounts figures, including gross domestic product data.
No major equities news is expected.
The Australian market on Tuesday dropped to a four-month low as all sectors lost ground and the heavyweight banking and mining sectors suffered steep falls.
The benchmark S&P/ASX 200 index fell 87.4 points, or 1.52 per cent, at 5,667.5 points
The broader All Ordinaries index lost 84 points, or 1.45 per cent, at 5,708.1 points.
Meanwhile, the Australian dollar has breached 75 US cents with its US counterpart on the defensive ahead of Britain’s election on Thursday.
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
Major US stock indexes have ended near session lows as traders shy away from risky assets ahead of major political and economic headlines expected on Thursday.
Britain’s general election as it maps its exit from the European Union, the European Central Bank’s policy meeting and former FBI Director James Comey’s testimony before a Senate panel could all affect investor sentiment.
Comey was investigating whether Donald Trump’s presidential campaign and Russia colluded to sway the 2016 US election when he was fired by Trump in May.
His testimony could dampen already flagging momentum for the US President’s agenda of rolling back regulations and overhauling the tax code.
British Prime Minister Theresa May could increase her parliamentary majority, an opinion poll showed on Tuesday, shortly after another survey suggested the race with the opposition Labour Party was neck-and-neck.
Investors will also watch out for the ECB’s meeting, where policymakers are expected to take a more benign view of the economy, according to sources.
On Tuesday, the Dow Jones Industrial Average fell 0.23 per cent to 21,136.23, the S&P 500 lost 0.28 per cent to 2,429.33 and the Nasdaq Composite dropped 0.33 per cent to 6,275.06.
- Gold prices rose to a six-month high, buoyed by rising haven demand, waning hopes of macroeconomic growth and a weaker dollar.
- Gold for August delivery settled up 1.2% at $1,297.50 a troy ounce on the Comex division of the New York Mercantile Exchange, the highest close since Nov. 4.
- Meanwhile, copper reversed gains, closing down 0.4% to $2.5470 a pound in New York.
- IRON ORE: $55.67 +0.18 ( June contract )
- Oil prices posted only their third gain of the past nine sessions as traders prepared for what’s expected to be the latest in a string of inventory declines in the U.S.
- Light, sweet crude for July settled up 79 cents, or 1.7%, at $48.19 a barrel on the New York Mercantile Exchange. Brent gained 65 cents, or 1.3%, to $50.12 a barrel on ICE Futures Europe. Both had their biggest daily gains since May 26.
- Oil flipped up sharply from losses midday, but there was little consensus on any one particular reason behind the reversal. Many were mildly surprised after 24 hours of low-volatility trading and prices stuck between about $47 and $48 a barrel for three sessions.
- The greenback fell 1% against the Japanese currency to Y109.406, its biggest daily decline since March. Other assets seen as safe, including the Swiss franc, gold and U.S. government bonds, also strengthened.
- The U.S. dollar tumbled against the Japanese yen as investors turned cautious ahead of important political events.
- The local currency was trading at 75.09 US cents at 0714 AEST on Wednesday, from 74.74 on Tuesday.
- European shares extended their fall on Tuesday, with healthcare stocks particularly weak, as a diplomatic spat in the Middle East weakened appetite for risky assets across the board.
- The pan-European STOXX 600 benchmark dropped 0.7 per cent, falling for a second session, while eurozone stocks and blue-chips followed suit.
- Germany’s DAX lost 1.04 per cent to 12,690.12.
- The greatest downward pull came from healthcare stocks.
- Utilities were the best performers, up 0.6 per cent, as investors fled to safety.
- UK shares remained stuck below last week’s record high as investors sought safety in precious metals miners and defensives ahead of Thursday’s general election, while British mid caps dropped close to a three-week low.
- The blue chip FTSE 100 closed flat in percentage terms, while the more domestically-exposed mid cap index dropped more than 1 per cent, its biggest one-day loss in two months.
- While large caps spent the majority of the trading session in negative territory, a dip in the British pound helped the blue chip index end broadly unchanged.
Escalating tensions in the Middle East, the impending testimony of the former FBI director, British elections and a European Central Bank meeting this week, all took their toll on Asian stocks.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.2 per cent, pulling back from a two-year high hit on Monday.
Japan’s Nikkei dropped 0.5 per cent, tripped by a stronger yen.
Hong Kong’s benchmark Hang Seng Index powered ahead on Tuesday, touching the 26,000 point-mark, and closed at a fresh 23-month high, aided by continued strength in property shares.
The Hang Seng index rose 0.5 per cent, to end at 25,997.14 points, while the China Enterprises Index gained 0.1 per cent, to 10,606.26 points.
Chinese money inflows helped property stocks surge.
China stocks ended higher, with consumer and financial shares lending support as investors pondered the impact of new regulations on initial public offerings and ahead of a flurry of economic data.
The blue-chip CSI300 index rose 0.7 per cent, to 3,492.88 points, while the Shanghai Composite Index gained 0.3 per cent to 3,102.13 points.
The S&P/NZX50 index dropped 0.067 per cent to 7494.97.
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