Monday: 28th May 2018

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

The Australian share market is expected to open lower after US stocks and oil prices fell at the end of last week.

The S&P 500 and the Dow eased on Friday after a steep drop in oil prices pressured energy stocks, but losses were limited by gains in chipmakers and retail stocks.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market is expected to open lower after US stocks and oil prices fell at the end of last week.
On Monday morning, the Australian share price futures index was down 30 points, or 0.5 per cent, at 6,007 points.
The Australian share market on Friday closed flat, with a lack of domestic and international news leaving investors with little to direct their activity.
The benchmark S&P/ASX200 was down 4.3 points, or 0.07 per cent, at 6,032.8 points, the broader All Ordinaries index was down 3.2 points, or 0.05 per cent, at 6,140.9 points.
In economics news on Monday, CoreLogic releases its weekly capital city house prices report.

US Markets

The S&P 500 and the Dow eased on Friday after a steep drop in oil prices pressured energy stocks, but losses were limited by gains in chipmakers and retail stocks.
US crude tumbled four per cent to settle at $US67.88 a barrel after Saudi Arabia and Russia said they were ready to ease supply curbs that have pushed prices to their highest since 2014.
The S&P energy index slid 2.6 per cent and registered its biggest daily percentage drop since early February, while Chevron dropped 3.5 per cent and Exxon Mobil fell 1.9 per cent and were among the biggest drags on the Dow and S&P 500.
The Dow Jones Industrial Average fell 58.67 points, or 0.24 per cent, to 24,753.09, the S&P 500 lost 6.43 points, or 0.24 per cent, to 2,721.33 and the Nasdaq Composite added 9.43 points, or 0.13 per cent, to 7,433.85.

Commodities

The spot price of gold in Sydney at 0700 AEST was $US1,300.70 per fine ounce, from $US1,303.43 per fine ounce on Friday.
IRON ORE: $63.88 -1.25(June contract)

Oil Futures

Oil prices plunged as Saudi Arabia and Russia neared a deal to increase oil production after more than a year of holding crude off the market.

Forex

The dollar rose against a broad range of currencies Friday, boosted by political uncertainty in Europe and a drop in oil prices.
The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently up 0.4% to 87.33.
Fears that Italy’s likely new antiestablishment coalition government will add to the country’s large debt pile and potentially loosen ties with the European Union have weighed on the euro, which was recently down 0.7% at $1.1645.
The Australian dollar is almost unchanged from where it finished Friday’s local session, after a mixed session on metals markets and the major Wall Street stock indexes finishing slightly lower.
At 0635 AEST on Monday, the local currency was worth 75.57 US cents, from 75.62 US cents on Friday.

European Markets

A slump in oil prices hit British majors on Friday, limiting the gains of the FTSE 100 benchmark index while Kingfisher shone after Australia’s Wesfarmers said it would sell rival UK home improvement chain Homebase.
The blue chip FTSE 100 ended the day up 0.18 per cent at 7,730.28 points but posted a weekly loss of 0.6 per cent, breaking an eight-week run of gains.
France’s CAC fell 0.11 per cent and Germany’s DAX was up 0.65 per cent
“The move lower in the oil market on account of speculation that OPEC will raise output slightly has hit London-listed stocks like BP, Royal Dutch Shell and Tullow Oil,” said David Madden, an analyst at CMC Markets UK.
Index heavyweights BP and Royal Dutch Shell lost two per cent and 1.5 per cent respectively while Tullow Oil fell 4.1 per cent.

Asian Markets

Asian share have recovered earlier losses as Pyongyang’s measured response to US President Donald Trump’s announcement to call off a key summit with North Korea healed market sentiment, although investors remained cautious.
North Korean Vice Foreign Minister Kim Kye Gwan said Pyongyang still hoped for a “Trump formula” to resolve the standoff over its nuclear weapons program, noting that the country was open to resolving issues with the United States.
MSCI’s broadest index of Asia-Pacific shares outside Japan managed to eke out 0.1 per cent gains, while South Korea’s Kospi pared much of its earlier loss of 0.9 per cent to last trade down 0.2 per cent.
Japan’s Nikkei was up 0.1 per cent.
On Tuesday, New Zealand’s S&P/NZX 50 index rose 0.55 per cent, to 8,638.40.

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