Monday: 18th June 2018

OPENING CALL: The Australian market looks to open lower with SPI Futures unchanged at 6,100.

The Australian share market looks set to open unmoved by the global negativity and anxiety over a growing trade spat between the US and China.

Wall Street stocks have ended lower, capping a day of heavy trading with investors mostly pulling back from initial concerns over an escalating trade dispute between the United States and China.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market looks set to open unmoved by the global negativity and anxiety over a growing trade spat between the US and China.
At 0700 AEST on Monday, the share price futures index was unchanged at 6,100.
The world’s key equity markets – except Tokyo’s Nikkei index, closed sharply lower in their previous session, with the FTSE100 losing 1.70 per cent, Germany’s DAX down 0.73 per cent and all three key Wall Street indexes finishing lower.
No economic or equities news is expected on Monday, other than CoreLogic’s capital city house prices survey for the week just ended.
The Australian market on Friday closed at a four-week high after investors decided it was time to buy back into beaten-down banks, and the major miners and energy stocks made solid gains.
The benchmark S&P/ASX200 was up 77.4 points, or 1.29 per cent, at 6,094.0 points at 1630 AEST, while the broader All Ordinaries index was up 75.7 points, or 1.23 per cent, at 6,205.3 points.

US Markets

Wall Street stocks have ended lower, capping a day of heavy trading with investors mostly pulling back from initial concerns over an escalating trade dispute between the United States and China.
US president Donald Trump unveiled an initial list of strategically important goods that would be subject to a 25 per cent tariff effective July 6, a move China’s Commerce Ministry called “a threat to China’s economic interest and security”.
China issued its own list of US imports subject to tariffs, targeting soybeans, aircraft, autos and chemicals.
The Dow Jones Industrial Average fell 0.34 per cent, to 25,090.48, the S&P 500 lost 0.11 per cent, to 2,779.42 and the Nasdaq Composite dropped 0.19 per cent, to 7,746.38.

Commodities

The spot price of gold in Sydney at 0700 AEST was $US1,79.46 per fine ounce, from $US1,298.97 per fine ounce on Friday.
IRON ORE: $65.93 -0.32(July contract)

Oil Futures

Oil prices fell Friday as traders braced for higher crude production and disruption to global trade.

Forex

The dollar rose against a broad range of Asian currencies Friday, as concerns grew over an intensifying trade conflict between the U.S. and China.
The U.S. dollar was recently up 1.2% against the Korean won, and rose 1.5% against the Thai baht. It also gained 0.6% against the Indian rupee, while also strengthening against the currencies of Taiwan and Malaysia.
The Australian dollar has slipped a little further against its US counterpart as the spat between the US and China over trade hurts commodities and commodity currencies, including the Aussie.
At 0635 AEST on Monday, the Australian dollar was worth 74.46 US cents, down from 74.57 US cents on Friday.

European Markets

The escalating US-China trade spat sent UK stocks tumbling on Friday, sinking oil and mining shares in a broad reversal across European markets.
President Trump announced tariffs on $US50 billion worth of Chinese imports and Beijing threatened to respond in kind, stopping the FTSE 100’s earlier rally in its tracks and sealing the fourth straight week of losses for Britain’s top share index.
The FTSE 100 ended the day down 1.70 per cent, at 7,633.91, resulting in a 0.6 per cent loss on the week.
One bright spot, however, was Rolls-Royce, which jumped 7.6 per cent after the engine maker issued ambitious mid-term goals.
Europe’s key index were similarly negative with the pan-European basic resources sector down 3.3 per cent in its worst daily fall since November 2016.
The pan-European FTSEurofirst 300 index lost 0.76 per cent, while Germany’s DAX lost0.74 per cent to close at 13,010.55.

Asian Markets

Asia’s key equities index also lost ground, led by China, with Japan the only main bourse to buck the trend.
The Asia Pacific MSCI index ex-Japan edged down 0.3 per cent while Nikkei average 225 rose 0.50 per cent to 22,851.75.
China’s benchmark Shanghai Composite index plumb a 20-month low, as investors worried about the economic damage from the trade tensions with the United State.
It fell 0.73 per cent to 3,021.90. The CSI300 lost 0.53 to 3,753.43.
Hong Kong stocks fell as Washington looked set to unveil a tariff list targeting $US50 billion Chinese goods, and Beijing vowed to retaliate, putting investors on edge.
The Hang Seng index fell 0.43 per cent, to 30,309.49, while the China Enterprises Index lost 0.67 per cent, to 11,870.18 points.
New Zealand’s S&P/NZX 50 index closed barely changed, down 0.03 per cent, at 8,975.75.

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