Friday: 22nd June 2018

OPENING CALL: The Australian market looks to open lower with SPI Futures down 30 points.

The Australian share market looks set to open weaker after virtually all major global bourses closed lower in the offshore trading session.

US stocks have fallen, with the Dow slumping for an eighth straight decline as industrials wobbled again on trade war concerns while Amazon and other online retailers weakened after a US Supreme Court ruling on state sales tax collection.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market looks set to open weaker after virtually all major global bourses closed lower in the offshore trading session.
At 0700 AEST on Friday, the share price futures index was down 30 points, or 0.49 per cent, at 6,151 points.
The Dow Jones Industrial Average fell 0.8 per cent to 24,461.7, the S&P 500 lost 0.63 per cent to 2,749.76 and the Nasdaq Composite dropped 0.88 per cent to 7,712.95.
No major economic or equities news is expected on Friday.
The Australian market on Thursday closed at its highest level in more than 10 years, with significant gains across most sectors as investors looked past fears of a looming trade war between the US and China.
The benchmark S&P/ASX200 index was up 59.5 points, or 0.96 per cent, at 6,232.1 points, while the broader All Ordinaries was up 58.3 points, or 0.93 per cent, at 6,332.9 points.

US Markets

US stocks have fallen, with the Dow slumping for an eighth straight decline as industrials wobbled again on trade war concerns while Amazon and other online retailers weakened after a US Supreme Court ruling on state sales tax collection.
Big US manufacturers and car-makers were under pressure after Germany’s Daimler cut its 2018 profit forecast and BMW said it was looking at “strategic options” because of a trade war between the US and China.
Caterpillar lost 2.52 per cent and Boeing fell 1.5 per cent on Thursday, with the S&P industrials off 1.19 per cent and on track for their seventh fall in eight sessions.
The Trump administration on Wednesday reversed an administration policy that separated children and parents who entered the country illegally at the US-Mexico border.
Amazon dropped as much as 1.9 per cent after the court ruling, which allows states to force online retailers to collect sales taxes, before paring losses to trade down 1.1 per cent. Wayfair lost 1.6 per cent, Overstock.com tumbled 7.2 per cent, Etsy declined 1.4 per cent and Ebay dropped 3.2 per cent.
The Dow Jones Industrial Average fell 196.1 points, or 0.8 per cent, to 24,461.7, the S&P 500 lost 17.56 points, or 0.63 per cent, to 2,749.76 and the Nasdaq Composite dropped 68.56 points, or 0.88 per cent, to 7,712.95.

Commodities

The spot price of gold in Sydney at 0700 AEST was $US1,266.78 per fine ounce, from $US1,262.71 per fine ounce on Thursday
IRON ORE: $63.98 -0.28(July contract)

Oil Futures

U.S. benchmark oil prices declined slightly while global benchmarks for Europe and Asia plunged more than 2%, as investors wagered a likely decision Friday by international oil-producing countries to pump more oil will impact overseas markets more than U.S.markets.

Forex

U.S. government bond prices rose as fears about growing political risk around the world kept investors on edge.
The yield on the benchmark 10-year U.S. Treasury note settled at 2.899%, compared with 2.928% Wednesday.

The Australian dollar has gained some ground against its US counterpart which sharply reversed lower overnight following jumps in the sterling and the euro and following the release of weaker than expected business growth figures.
At 0630 AEST on Friday, the local currency was worth 73.80 US cents, up from 73.49 US cents on Thursday.

European Markets

Britain’s top share index has fallen as sterling bounced from seven-month lows following a Bank of England policy vote that bolstered expectations of a rate hike in August.
As widely expected, the BoE kept rates unchanged but its chief economist unexpectedly joined the minority of policymakers calling for a hike.
Its Monetary Policy Committee (MPC) voted 6-3 to keep rates at 0.5 per cent.
Economists in a Reuters poll had said they expected a continued 7-2 split.
The surprise pushed sterling higher after an earlier drop. That in turn sent the FTSE 100 down and the export-oriented index closed 0.9 per cent lower.
The FTSE 100 Index fell 70.96 points, or 0.93 per cent, to 7,556.44 points.
Barratt Development and Persimmon both fell 3.7 per cent, while Taylor Wimpey lost 3.1 per cent.
Financials and energy stocks weighed on the FTSE as expectations of an OPEC deal to raise output sent oil prices tumbling.
Royal Dutch Shell fell 1.1 per cent and BP 0.9 per cent.

Asian Markets

Hong Kong stocks have ended at a six-month low, as China-US trade conflict fears curbed risk appetite.
The Hang Seng index ended 1.35 per cent lower at 29,296.05, while the China Enterprises Index closed lower by 1.2 per cent at 11,364.66 points.
The sub-index of the Hang Seng tracking energy shares dipped 1.5 per cent, while the IT sector slipped 0.86 per cent, the financial sector closed 1.36 per cent lower and property sector lost 1.2 per cent.
The top gainer on Hang Seng was Country Garden Services Holdings Company Ltd, which ended 15.3 per cent higher, while the biggest loser was Sunny Optical Technology Group Co Ltd, which closed 8.91 per cent down.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.67 per cent, while Japan’s Nikkei index closed up 0.61 per cent.
The yuan was quoted at 6.5032 per US dollar at 0810 GMT, 0.44 per cent weaker than the previous close of 6.475.
New Zealand shares have rallied, pushing the S&P/NZX 50 Index to a record after Fletcher Building detailed its five-year strategy and affirmed guidance.

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