Monday: 14th May 2018

OPENING CALL: The Australian market looks to open higher with SPI Futures up 4 points.

The Australian share market is expected to open flat after Wall Street only only managed to eke out small gains on Friday.

Wall Street’s S&P 500 rose on Friday, helped by healthcare stocks after President Donald Trump blasted high drug prices but avoided taking aggressive measures to cut them.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market is expected to open flat after Wall Street only only managed to eke out small gains on Friday.
On Monday morning, the Australian share price futures index was up four points, or 0.07 per cent, at 6,100 points.The Australian share market on Friday softened in late trade to finish the day in the red.
The benchmark S&P/ASX200 closed down 2.5 points, or 0.04 per cent, at 6,116.2 points, while the broader All Ordinaries index lost 0.5 points, or 0.01 per cent, at 6,216.4 points.
In economics news on Monday, CoreLogic releases its weekly capital city house prices report, and the Reserve Bank of Australia releases credit and debit card lending for March.

US Markets

Wall Street’s S&P 500 rose on Friday, helped by healthcare stocks after President Donald Trump blasted high drug prices but avoided taking aggressive measures to cut them.
Johnson & Johnson and Pfizer each rose over one per cent while Merck & Co jumped 2.8 per cent after Trump in a speech said foreign governments “extort” unreasonably low prices from US drugmakers. His healthcare deputies released a series of proposals to address high drug costs.
The tech sector slipped 0.32 per cent, with Apple Inc dropping 0.38 per cent after a nine-day winning streak that saw the iPhone maker edge closer to $US1 trillion in market capitalisation.
“Tech is giving back some of its gains. Market participants are not making aggressive bets after the week we’ve had, heading into the weekend,” said Keith Lerner, chief market strategist at SunTrust Advisory Services in Atlanta. “We’re in a holding pattern today, digesting the strong gains of the week.”

Commodities

The spot price of gold in Sydney at 0700 AEST was $US1,318.83 per fine ounce, from $US1,319.07 per fine ounce on Friday.
IRON ORE: $67.53 +1.29 (June contract)

Oil Futures

Oil prices fell, stalling after surging to more-than-three-year highs after President Donald Trump’s decision to pull the U.S. out of the Iran nuclear deal.

Forex

The dollar rose against a raft of emerging-market currencies Friday, as investors faced fallout from a recent rise in U.S. yields.
The U.S. currency strengthened 1.4% against the Argentine peso, paring gains after hitting an all-time high earlier in the session. The peso has continued to fall this week after the South American country announced it would seek aid from the International Monetary Fund to stabilize its economy. The dollar also rose 1.4% against the Brazilian real and gained 1.9% against the Turkish lira, while rising against other emerging-market currencies.
The Australian dollar is slightly higher, after a Wall Street had a mixed session on Friday and most base metals prices were lower.
At 0635 AEST on Monday, the local currency was worth 75.45 US cents, up from 75.38 US cents on Friday.

European Markets

Yet another M&A deal stole the spotlight in British stocks trading on Friday as a $US3 billion ($A3.98 billion) bid sent Zoopla owner ZPG surging 30 per cent, while the FTSE 100 inched up, scoring its longest winning streak in nearly 13 years.
The FTSE 100 achieved its seventh straight week of gains, its longest winning streak since June 2015, as investors began to warm to UK equities once again.
“Equities should also continue to benefit from growth and we maintain our positive view, adding UK equities to our most preferred markets on restored value, and the market’s defensive nature,” said the Investment Strategy Department of Credit Suisse in a note on Friday.
On the day, the FTSE rose 0.3 per cent while the FTSE 250 gained 0.4 per cent.
In Germany the DAX 30 index was down 0.17 per cent, and in France the CAC 40 fell 0.07 per cent.

Asian Markets

Asian shares rallied on Friday as investors’ appetite for riskier assets got a boost from soft U.S. inflation, which helped alleviate worries of faster rate hikes by the Federal Reserve.
Markets were also cheered by a further easing in tensions on the Korean Peninsula, after U.S. President Donald Trump said he would meet North Korean leader Kim Jong Un in Singapore on June 12 for talks on its nuclear weapons programme.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.7 percent to near three-week highs with broad-based gains across all sectors. Japan’s Nikkei climbed 1.2 percent.
On Friday, New Zealand’s S&P/NZX 50 index rose 0.45 per cent, to 8,676.69.

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