Monday: 12th June 2018

OPENING CALL: The Australian market looks to open higher with SPI Futures up 27 points.

The Australian share market looks set to open almost half a per cent higher, following the lead of major international markets.

All three major US stock indexes have closed slightly higher as investors eyed the looming United States-North Korea summit in Singapore while shrugging off the weekend’s fractious meeting of the G7.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market looks set to open almost half a per cent higher, following the lead of major international markets.
At 0700 AEST on Tuesday, the share price futures index was up 27 points, or 0.48 per cent, at 6,078.
The Dow Jones Industrial Average rose 0.02 per cent, the S&P 500 gained 0.11 per cent, and the Nasdaq Composite added 14.41 points, or 0.19 per cent, to 7,659.93.
In economic news on Tuesday, the Australian Bureau of Statistics is due to release April’s lending finance data, including housing finance figures.
The ANZ-Roy Morgan Consumer Confidence weekly survey is also due out.
No major equities news is expected.
The Australian market on Friday – its last day of trading because of the Queen’s birthday public holiday on Monday – lost ground amid thin trading volumes as investors held fire ahead of the then imminent G7 meeting in Canada.
The benchmark S&P/ASX200 index closed down 12.1 points, or 0.2 per cent at 6,045.2, while the broader All Ordinaries index was 12.6 points, or 0.2 per cent weaker, at 6,156.8 points.

US Markets

All three major US stock indexes have closed slightly higher as investors eyed the looming United States-North Korea summit in Singapore while shrugging off the weekend’s factious meeting of the G7.
President Donald Trump announced the United States’ withdrawal from the G7’s joint communique following a series of bellicose tweets aimed at Prime Minister Justin Trudeau after the Canadian leader announced retaliatory tariffs on goods imported from its ally to the south.
The markets seemed to take the trade row in its stride and looked instead to the impending summit between Trump and North Korean leader Kim Jong-Un, an historic effort to bridge differences and avoid nuclear confrontation on the Korean peninsula.
The Dow Jones Industrial Average on Monday rose 0.02 per cent, to 25,322.31, the S&P 500 gained 0.11 per cent, to 2,782 and the Nasdaq Composite added 0.19 per cent, to 7,659.93.

Commodities

The spot price of gold in Sydney at 0700 AEST was $US1,300.40 per fine ounce, from $US1,294.599 per fine ounce on Friday.
IRON ORE: $65.37 +0.42(July contract)

Oil Futures

Oil prices started the week higher as traders bet that growing supplies had pressured the market enough for now.

Forex

The U.S. dollar rose against its Canadian counterpart as investors reacted to an escalating trade conflict between the two countries.
President Donald Trump said Saturday the U.S. wouldn’t endorse the final communiqué of the Group of Seven industrial nations summit and threatened to impose auto tariffs in a statement on Twitter, in which he insulted the Canadian prime minister.
The U.S. dollar was recently up 0.5% to C$1.2989 against the Canadian currency. It rose 1.4% to 20.5785 against the Mexican peso. Mexico and Canada’s currencies have been buffeted in recent months by trade tensions with the U.S. as the three countries renegotiate the North American Free Trade Agreement. The peso is also weighed down by uncertainty over a presidential election set for next month.

European Markets

Export-oriented firms led British shares higher on Monday as a weaker pound stood to make them more competitive, while hopes of a bidding war boosted satellite provider Inmarsat.
Investors were cautious, however, as the pound’s weakness resulted from an unexpected decline in UK factory output in April, raising concern that the British economy’s sluggish start to the year continued.
The FTSE 100 index ended up 0.73 per cent at 7,737.43, its highest close in a week and helped by gains in big international companies such as British American Tobacco and Diageo, up 1.2 and 2.4 per cent respectively.
European banking stocks and Italian shares jumped after Italy’s new economy minister promised to keep the country in the euro, dissipating investors’ fears of a euro zone break-up and boosting sentiment after a fraught G7 summit.

Asian Markets

Japanese stocks rose amid thin trade as investors looked ahead to the looming the US-North Korea summit, with traders ascribing part of the broader gains to buying in futures.
Japan’s Nikkei 225 index closed up 0.48 per cent at 22,804.04, while MSCI’s Asia ex-Japan stock index was firmer by 0.31 percent.
Hong Kong shares rose slightly ahead of a US-North Korea summit that investors hope might pave the way for an end to the nuclear stand-off on the Korean peninsula.
The Hang Seng index gained 0.34 per cent to 31,063.70, while the China Enterprises Index gained 0.1 per cent to 12,172.03.
Shanghai stocks fell for a third straight session, on investor concerns over the liquidity conditions in the market.
The Shanghai Composite Index touched its lowest level since last May before closing down 0.47 per cent at 3,052.78 points, while the blue-chip CSI300 index was flat at 3,779.98 points.
New Zealand’s S&P/NZX 50 index lifted 0.24 per cent to 8,959.81.

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