Friday: 8th June 2018

OPENING CALL: The Australian market looks to open lower with SPI Futures down 8 points.

The Australian share market looks set to open lower, after upbeat sentiment evaporates on Wall Street and Europe’s key equity markets.

The S&P and Nasdaq have fallen as the technology sector snaps a rally while investors turn to safer bets, keep an eye on global trade tensions and wait for US and European central bank meetings.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market looks set to open lower, after upbeat sentiment evaporates on Wall Street and Europe’s key equity markets.
At 0700 AEST on Friday, the share price futures index was down eight points, or 0.13 per cent, at 6,054.
No major economic or equities news is expected on Friday.
However, the federal parliamentary inquiry into the Franchising Code of Conduct is slated to begin public hearings at the Queensland Parliament building in Brisbane.
And, the first hearing of the Phi Finney McDonald class action against wealth manager AMP is listed the Melbourne registry of the Federal Court of Australia.
The Australian market on Thursday closed higher for a second consecutive day, with broad-based gains led by the miners and supported by the energy and financial sectors.
The benchmark S&P/ASX200 index gained 32.3 points, or 0.54 per cent, to 6,057.3 points while the broader All Ordinaries index rose 32 points, or 0.52 per cent, to 6,169.4 points

US Markets

The S&P and Nasdaq have fallen as the technology sector snaps a rally while investors turn to safer bets, keep an eye on global trade tensions and wait for US and European central bank meetings.
US Treasury prices rose on Thursday, as trade disputes between the US and its major trade partners were in focus ahead of the Group of Seven summit.
Investors worried about a showdown at the meeting, set for Friday and Saturday in Charlevoix, Quebec, after US president Donald Trump signalled that he would stick to his tough stance on trade after imposing tariffs on steel and aluminium imports from Canada, Mexico and the European Union last week.
Canada and Mexico have retaliated against a range of US exports and the EU has promised to do so as well.
The Federal Reserve is widely expected to announce an interest rate hike on Wednesday but investors are looking for clues on whether the US central bank will raise rates a fourth time in 2018.
The Dow Jones Industrial Average rose 0.38 per cent, to 25,241.41, the S&P 500 lost 0.07 per cent, to 2,770.37.

Commodities

The spot price of gold in Sydney at 0700 AEST was $US1,296.95 per fine ounce, unchanged from Thursday.
IRON ORE: $65.38 -0.07(July contract)

Oil Futures

Crude prices ticked up, as the market refocused on geopolitical risks to supply in Iran and Venezuela ahead of a meeting of major producers later this month.

Forex

A popular gauge of the U.S. dollar slid for a third straight day, as leaders of the Group of Seven nations kicked off a summit in Canada.
Meanwhile, the buck’s main rival, the euro, rebounded on expectations that the European Central Bank would move as early as next week to outline its plans for ending its quantitative easing program.
The ICE U.S. Dollar Index dropped 0.3% to 93.420. That was around its lowest level since mid-May and set the greenback on track for its third losing session in a row, according to FactSet data. The broader WSJ Dollar Index fell 0.1% to 86.80.
The Australian dollar is lower against a weakened US dollar and the other major currencies, while market risk sentiment has flipped from upbeat to
downbeat when Wall Street opened with no obvious reason.
At 0635 AEST on Friday, the Australian dollar was worth 76.22 US cents, down from 76.47 US cents on Thursday.

European Markets

Britain’s top share index dipped on Thursday following a delayed open as stocks trading ex-dividend outweighed a rise among banks and big oil, while a stronger pound added pressure.
The blue-chip FTSE 100 index and mid-caps both closed down 0.1 per cent. Trading was delayed for an hour, which exchange operator LSE blamed on technical issues.
Falls among stocks going ex-dividend such as Vodafone and Sainsbury’s capped any gains for the UK index, which underperformed continental European equities.
A rising pound also put pressure on foreign-earning stocks such as big consumer staples firms.
European shares were also lowerwith luxury stocks among the leading losers after an underwhelming presentation from Gucci owner Kering.

Asian Markets

Asian stocks were mixed with Japan and Hong Kong lifting but China’s key indexes dropping.
MSCI’s Asia ex-Japan stock index was firmer by 0.54 per cent while Japan’s Nikkei index closed up 0.87 per cent at 22,823.26.
Hong Kong stocks were encouraged by signs of progress in the Sino-US trade talks, easing fears of a trade war, with the Hang Seng up 0.81 per cent, at 31,512.63.
The China Enterprises Index gained 1.0 per cent, to 12,407.80 points.
China’s Commerce Ministry on Thursday said the country did not want an escalation of trade frictions with the United States, and that some specific progress had been made in the latest round of talks that concluded over the weekend.
China stocks slipped as consumer and healthcare firms took a breather after recent gains.
The blue-chip CSI300 index closed 0.17 per cent down at 3,831.01 while the Shanghai Composite Index lost 0.18 per cent to 3,109.50 points.
New Zealand’s S&P/NZX 50 index rose 0.98 per cent to 8,899.52.

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