Monday: 7th May 2018

OPENING CALL: The Australian market looks to open higher with SPI Futures up 38 points.

The Australian share market is expected to open higher, after there were strong gains in US stocks following the release of US employment data.

U.S. stocks rebounded Friday, shaving away much of the S&P 500 and Dow Jones Industrial Average’s midweek losses but leaving both indexes down for a second consecutive week.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market is expected to open higher, after there were strong gains in US stocks following the release of US employment data.
At 0700 AEST on Monday, the Australian share price futures index was up 38 points, or 0.63 per cent, at 6,092 points.
The Australian share market on Friday was lower, weighed down by falls by the big banks.
The benchmark S&P/ASX200 closed down 35.4 points, or 0.58 per cent at 6,062.9 points, while the broader All Ordinaries index was down 31.6 points, or 0.51 per cent, at 6,155.4 points.
In economics news on Monday, CoreLogic weekly capital city house prices is due out, and the Australian Industry Group releases its performance of construction index.
In equities news, Westpac releases its half year results, and Orica half year results are due out.
The Australian dollar is slightly higher after US stocks rose more than one per cent on Friday and base metals prices posted strong gains.
At 0700 AEST on Monday, the local currency was worth 75.42 US cents, from 75.25 US cents on Friday.

US Markets

U.S. stocks rebounded Friday, shaving away much of the S&P 500 and Dow Jones Industrial Average’s midweek losses but leaving both indexes down for a second consecutive week.
Friday’s moves allowed the stock market to end on a high note following a rocky stretch that included lukewarm earnings reports and economic data.
Recent reports have pointed to a slowdown in growth across much of the U.S. economy in April, smaller-than-expected job creation and still-sluggish wage growth, which has renewed questions among investors about whether the economy’s momentum is slowing.
Still, many investors say they remain relatively optimistic about stocks, citing broadly strong earnings results, as well as signs that central banks will stick to a slow and steady course of interest-rate increases.
The Dow Jones Industrial Average rose 332.36 points, or 1.4%, to 24262.51, erasing declines after falling as many as 151 points earlier in the session. The S&P 500 added 33.69 points, or 1.3%, to 2663.42, while the Nasdaq Composite climbed 121.47 points, or 1.7%, to 7209.62, lifted by a rally in Apple shares.
The Nasdaq rose 1.3% for the week, while both the S&P 500 and Dow industrials ended down 0.2%.

Commodities

Gold prices swung between small gains and losses before closing slightly higher Friday after the latest jobs report showed employers added fewer jobs than expected last month while the unemployment rate fell to its lowest level since 2000.
Front-month gold for May delivery closed up 0.2% to $1,312.70 a troy ounce on the Comex division of the New York Mercantile Exchange to cap off a third straight week of losses.
Prices have stayed between about $1,305 and $1,360 this year, moving within that range based on swings in the dollar, interest rate worries and safe-haven demand.
IRON ORE: $67.02 +0.34 (June contract)

Oil Futures

Oil prices rose to a three-year high on Friday, lifted by falling OPEC production and concerns that fresh sanctions on Iran could further stifle crude output.
Light, sweet crude for June delivery gained $1.29, or 1.9%, to $69.72 a barrel on the New York Mercantile Exchange, the highest settle value since November 2014. Brent, the global benchmark, increased $1.08, or 1.5%, to $74.87.
Geopolitical tensions have been a key supporter of crude prices in recent weeks, as traders await a decision by President Donald Trump on whether the U.S. will pull out of the 2015 nuclear deal and reimpose sanctions on the oil-exporting country.

Forex

The euro fell to its lowest level against the dollar this year Friday, reflecting expectations of slowing growth in the region.
The single currency fell to $1.1910 earlier in the session, its lowest level since late December. The euro was down 0.2% to $1.1963.
Growth in the eurozone slowed in the first three months of this year, data showed earlier this week, denting hopes of another year of strong expansion in the region.
By contrast, the U.S. economy appears to be growing at a steady pace. The jobless rate fell to 3.9% in April, the lowest level since December 2000, A U.S. government report showed Friday.
The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, was up 0.2% at 86.16.

European Markets

Britain’s leading stock index was lifted by strong results from British Airways owner IAG, while HSBC joined French banks in reporting weaker profit which hit its shares.
A weak pound, which gives an accounting boost to companies whose earnings are in US dollars, also helped Britain’s FTSE 100 to close up 0.86 per cent on the day.
The index has risen sharply in recent weeks, though it is still underperforming European peers. It is up about 10 per cent since hitting 15-month lows at the end of March, and marked its sixth straight week of gains.
In Germany, the DAX 30 index was up 1.02 per cent, and France’s CAC 40 gained 0.26 per cent.

Asian Markets

Asian shares fell on Friday while the dollar ran into some profit-taking after several weeks of strong gains as financial markets turned their attention to looming US payrolls data for fresh catalysts.
Regional trading was relatively quieter as Japan was on holiday.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5 per cent, and looked set for a third straight weekly loss.
Indonesian stocks led the declines, falling as much as 1.5 per cent in early trading before recouping some of those losses, and South Korean shares were down one per cent.
WELLINGTON: On Friday, New Zealand’s S&P/NZX 50 index rose 0.03 per cent, to 8,549.37.

Related Posts