Monday: 8th January 2018

OPENING CALL: The Australian market looks to open higher with SPI Futures up 18 points.

The Australian share market looks set to open comfortably in the green after key indexes around the global make solid gains.
The S&P 500 and Nasdaq have notched their best weekly gains in more than a year as technology stocks helped lift major indexes to records.
Asian shares inched closer to a record high on Friday as US jobs data pointed to firm economic growth although the greenback was soft as the spectre of benign inflation capped domestic bond yields.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market looks set to open comfortably in the green after key indexes around the global make solid gains.
At 0700 AEDT on Monday, the share price futures index was up 18 points, or 0.30 percent, at 6,092.
In economic news on Monday, the Ai Group’s performance of construction index is expected on Monday, as is the CoreLogic capital city dwelling prices for the week just ended.
No major equities news is expected.
The Australian market on Friday closed higher on broad-based gains, led by banking stocks and a materials sector boosted by rising commodity prices.
The benchmark S&P/ASX200 index rose 45.2 points, or 0.74 percent, to 6,122.3.
The broader All Ordinaries index gained 44.3 points, or 0.72 percent, to 6,229.7.

US Markets

The S&P 500 and Nasdaq have notched their best weekly gains in more than a year as technology stocks helped lift major indexes to records.
With the New Year’s Day holiday falling on a Monday this year, it was the strongest first four trading days to a year in more than a decade for all three major indices, according to Reuters data. For the Dow, it was the strongest start since 2003 and for the Nasdaq and S&P 500 it was the strongest since 2006.
A US tax overhaul in December that includes hefty corporate tax cuts helped to fuel late-year gains and was the first major legislative victory in President Donald Trump’s pro-growth agenda since he took office a year ago.
The Dow broke above 25,000 for the first time on Thursday, while the S&P closed above 2,700 on Wednesday and the Nasdaq settled above 7,000 earlier in the week.
The Dow Jones Industrial Average rose 0.88 percent, to 25,295.87, the S&P 500 gained 0.70 percent, to 2,743.15 and the Nasdaq Composite added 0.83 percent, to 7,136.56.

Commodities

Gold prices closed slightly higher after swinging between small gains and losses following the latest jobs report, which showed the U.S. economy added fewer jobs than expected in December.
Among base metals, front-month copper for January delivery fell 1.1% to $3.2070 a pound. Prices are still near their highest level since 2014, supported by robust demand from China, the world’s largest consumer, and supply disruptions.
IRON ORE: $74.01 +0.26(February contract)

Oil Futures

Oil prices fell as some investors cashed in on the week’s strong gains and others mulled ambiguous U.S. inventory data.
U.S. crude futures fell 57 cents, or 0.92%, to $61.44 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 45 cents, or 0.66%, to $67.62 a barrel on ICE Futures Europe.

Forex

The dollar edged higher Friday, after a U.S. jobs report showed the lowest level of unemployment in years and higher wage growth.
The Wall Street Journal Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently up 0.1% at 85.68.
Nonfarm payrolls rose a seasonally adjusted 148,000 in December, the Labor Department said Friday. Economists surveyed by The Wall Street Journal had expected 180,000 new jobs.
Investors, however, focused on the reports’ more positive aspects. The unemployment rate remained at 4.1%, matching the lowest level since December 2000 for the third straight month, the data showed. At the same time, hourly wages improved modestly during December, and rose 2.5% from a year earlier.
Australian Dollar:
The Australian dollar is comfortably higher against a US dollar that has strengthened despite slightly amid weaker-than-expected US jobs data.
At 0635 AEDT on Monday, the Australian dollar was worth 78.62 US cents, from 78.48 US cents on Friday.

European Markets

European shares on Friday powered to their best week since last April, with the British and Swiss benchmarks hitting records, propelled by optimism about a strengthening regional economy and fresh new highs on Wall Street.
The pan-European STOXX 600 index was up 0.8 percent, holding at a two-month high, while euro zone blue chips rose 1.1 percent, also scoring its best performance since April.
Gains were trimmed briefly when US non-farm payrolls missed expectations, but the upward trend resumed quickly.
Germany’s DAX closed up 1.15 percent to 13,319.64.
Britain’s FTSE 100 jumped to another record, even if its rise, 0.4 percent, was more modest than its European peers.
Britain’s main stock index still scaled new peaks, lifted by a wave of gains across equities worldwide, while a sharp fall in UK car sales hit some motor dealers and insurance stocks.
The FTSE 100 closed 0.37 percent higher at 7,724.22 points after hitting a record of 7,727.7 around mid-session, boosted by miners, utilities, and consumer staples stocks.

Asian Markets

Asian shares inched closer to a record high on Friday as US jobs data pointed to firm economic growth although the greenback was soft as the spectre of benign inflation capped domestic bond yields.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose nearly 0.4 percent to 585.0, about one percent shy of its all-time peak of 591.5 hit in November 2007, led by gains in Australia and South Korea.
Japan’s Nikkei rose 0.89 percent to 23,714.53, a 26-year high.
Hong Kong stocks rose for a ninth straight session, aided by strong gains by real estate firms, and the benchmark Hang Seng Index closed up 0.25 percent at 30,814.64, a 10-year high.
China’s main Shanghai Composite index closed up 0.18 percent at 3,391.75 points while its blue-chip CSI300 index ended up 0.24 percent at 4,138.75.
The S&P/NZX 50 Index rose 0.1 per cent, to 8455.55.

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