Monday: 21st May 2018

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

The Australian share market is expected to open lower after the major Wall Street stock indexes were either flat or lower on Friday and base metals prices also fell.

The S&P 500 ended lower on Friday after a choppy trading session as bank and chipmaker stocks weighed on the index and investors grappled with US-China trade talks.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market is expected to open lower after the major Wall Street stock indexes were either flat or lower on Friday and base metals prices also fell.
On Monday morning, the Australian share price futures index was down 30 points, or 0.49 per cent, at 6,066 points.
The Australian share market on Friday closed weaker as mining and banking stocks lost ground, despite the energy sector and vaccines giant CSL giving the local market a shot in the arm.
The benchmark S&P/ASX200 was down 6.9 points, or 0.11 per cent, to 6,087.4, while the broader All Ordinaries index was down 6.3 points, or 0.1 per cent at 6,190.9 points.
In economics news on Monday, CoreLogic releases its weekly capital city house prices report.

US Markets

The S&P 500 ended lower on Friday after a choppy trading session as bank and chipmaker stocks weighed on the index and investors grappled with US-China trade talks.
All three major US stock indexes posted a weekly loss as the markets reacted to reports from the US-China trade summit, rising US government bond yields and increasing oil prices.
“I think everybody’s waiting on some sort of direction on American trade talks that are occurring right now, and there’s anxiety about oil prices,” said Oliver Pursche, vice chairman and chief market strategist at Bruderman Asset Management in New York.
The Dow Jones Industrial Average ended the session up 1.11 points, or 0.01 per cent, at 24,715.09, the S&P 500 lost 7.16 points, or 0.26 per cent, to 2,712.97 and the Nasdaq Composite dropped 28.13 points, or 0.38 per cent, to 7,354.34.

Commodities

The spot price of gold in Sydney at 0700 AEST was $US1,292.30 per fine ounce, from $US1,290.08 per fine ounce on Friday.
IRON ORE: $66.36 -1.32 (June contract)

Oil Futures

Oil prices closed lower on Friday, after wavering between gains and losses in anticipation of renewed U.S. economic sanctions on Iran.

Forex

The dollar rose against a raft of emerging-market currencies Friday, driven by expectations that U.S. yields will continue marching higher.
The U.S. currency was recently up 1.2% against the Brazilian real to 3.7419, its highest level since March 2016. It also rose 0.9% against the South African rand and strengthened to a fresh all-time high against the Turkish lira.
The Australian dollar is flat after Wall Street stocks finished Friday’s session flat or in negative territory.
At 0635 AEST on Monday, the local currency was worth 75.22 US cents, from 75.23 US cents on Friday.

European Markets

Britain’s leading stock index posted its eighth straight week of gains despite dipping slightly on Friday as investor enthusiasm waned following the previous day’s record close.
The FTSE 100 ended the session down 0.1 per cent at 7,778.79 points, in line with the FTSE 250 which hit a fresh record earlier in the session before turning lower.
The FTSE sealed its longest winning streak in 13 years, marking a strong comeback for British stocks.
Commodities, a key part of the UK stock market, have driven much of the recent climb in the FTSE 100, which has also benefited from a string of brokers recommending investors buy back into the region. The index made a full recovery from its February losses.

Asian Markets

Asian stocks were steady on Friday amid caution over developments in US-China trade negotiations, while the dollar perched near a five-month peak after the benchmark US Treasury yield hit its highest in seven years.
MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed, while Hong Kong’s Hang Seng rose 0.34 per cent and Shanghai climbed 1.24 per cent as some investors bet Beijing and Washington will reach a deal in the latest round of trade talks.
Japan’s Nikkei rose 0.4 per cent, and South Korea’s KOSPI was up 0.5 per cent.
On Thursday, New Zealand’s S&P/NZX 50 index rose 0.63 per cent, to 8,657.33.

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