Monday: 22nd January 2018

OPENING CALL: The Australian market looks to open higher with SPI Futures up 30 points.

The Australian share market looks set to open half a per cent higher after key indexes around the world finished the week firmly in the green.
Wall Street has risen, led by gains in consumer stocks, even as a possible government shutdown loomed.
Asia stocks shook off losses on Wall Street and edged to record highs on Friday following China’s announcement of faster-than-expected fourth-quarter growth, while worries over a possible US government shutdown weighed on the US dollar.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market looks set to open half a per cent higher after key indexes around the world finished the week firmly in the green.
At 0700 AEDT on Monday, the share price futures index was up 30 points, or 0.50 per cent, at 5,980.
In economic news on Monday, CoreLogic’s capital city house prices survey for the week just ended is due out.
In equities news, Australian Foundation Investment Company is expected to release its half-year results.
The Australian market on Friday closed lower on concerns around a possible US government shutdown, while the Aussie dollar is trading at a four-month high.
The benchmark S&P/ASX200 index fell 8.8 points, or 0.15 per cent, to 6,005.8 points, while the broader All Ordinaries index lost 11.1 points, or 0.18 per cent, to 6,119.3 points

US Markets

Wall Street has risen, led by gains in consumer stocks, even as a possible government shutdown loomed.
The S&P 500 and the Nasdaq hit record closing highs, while the Dow ended the day higher after trading in a narrow range.
Nike, Philip Morris International and Home Depot rose between 1.5 per cent and 4.8 per cent on upbeat analyst expectations, helping to boost the S&P 500. Conversely, losses in International Business Machines Corp and American Express capped gains on the Dow.
The Dow Jones Industrial Average rose 0.21 per cent to close at 26,071.72, the S&P 500 gained 0.44 per cent to 2,810.3 and the Nasdaq Composite added 0.55 per cent to 7,336.38.
For the week, the Dow rose 1.04 per cent, the S&P 500 added 0.86 per cent and the Nasdaq gained 1.04 per cent.

Commodities

Gold prices rose Friday, supported by a falling dollar amid worries of a possible government shutdown.
Front-month gold for January delivery rose 0.4% to $1,331.90 a troy ounce on the Comex division of the New York Mercantile Exchange. Prices have risen to their highest level since September to start the year with the dollar falling. A declining U.S. currency makes gold and other dollar-denominated commodities cheaper for overseas buyers.
IRON ORE: $74.69 +1.51(February contract)

Oil Futures

Oil prices fell to a one-week low on Friday, as a leading energy monitor predicted U.S. crude production would hit a record high this year, surpassing output from Saudi Arabia and rivaling that of Russia.

Forex

The dollar edged lower Friday as investor concerns focused on the risk that Congress and President Donald Trump might not be able to avert a government shutdown.
The Wall Street Journal Dollar Index, which measures the currency against a basket of 16 others, declined less than 0.1% to 84.40.
The House on Thursday evening passed, largely along party lines, a one-month spending bill by 230-197 that would keep the government funded through Feb. 16. But the bill was expected to fall short of the 60 votes needed to clear a procedural hurdle Friday in the Senate given opposition from most Senate Democrats and some Republicans.
The dollar has gotten off to a rough start this year. Its index has declined 1.8% through Jan. 18 as the potential for a government shutdown has weighed on the greenback, while signs of resurgent inflation in Japan and unexpectedly aggressive monetary policy statements from European officials have led those currencies to rise.
Australian dollar:
The Australian dollar is lower against a US counterpart weighed down by the threat of a US government shutdown.
At 0635 AEDT on Monday, the Australian dollar was worth 79.99 US cents, down from 80.14 US cents on Friday.

European Markets

Britain’s major share index rallied to a higher close on Friday as strong metals prices boosted miners and investors sought makers of consumer staples following fresh evidence of a slowdown in consumer spending.
Profit warnings in the morning from retailer Carpetright and funeral services provider Dignity reverberated across the retail sector and underscored the challenges facing British companies that suffer most when household finances are tight.
The FTSE 100 rose 0.39 per cent to close at 7,730.79. It was down 0.8 per cent on the week, its first week of losses in seven, after a stellar start to the year riding the wave of rising global equities.
Consumer staples companies whose profits are seen as less volatile to swings in consumer demand such as Unilever and cigarette maker BAT helped pull the index to a higher close.

Asian Markets

Asia stocks shook off losses on Wall Street and edged to record highs on Friday following China’s announcement of faster-than-expected fourth-quarter growth, while worries over a possible US government shutdown weighed on the US dollar.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.52 per cent while Japan’s Nikkei index closed up 0.19 per cent at 23,808.06.
Hong Kong’s Hang Seng Index ended at a new high, up for the sixth week in a row, led by property shares, as mainland money gushed into the city. HSCE, an index tracking mainland companies, registered a 16-day winning streak.
The Hang Seng index was up 0.41 per cent at 32,254.89. For the week, the index rose 2.7 per cent.
The Hang Seng China Enterprises index rose 0.65 per cent to 13,179.52.
The top gainer on Hang Seng was China Resources Land Ltd up 7.4 per cent, while the biggest loser was Hengan International Group Company Ltd which was down 3.32 per cent.
China’s main Shanghai Composite index closed up 0.38 per cent at 3,487.86 points while its blue-chip CSI300 index ended up 0.33 per cent at 4,285.40.
The S&P/NZX50 Index rose 0.2 per cent, to 8,289.96.

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