Thursday: 4th January 2018

OPENING CALL: The Australian market looks to open higher with SPI Futures up 32 points.

The Australian share market looks set to follow Wall Street’s recording making lead and open higher.
The S&P 500 index has risen above 2,700 for the first time and other major indexes hit record highs as technology stocks climbed amid indications of robust economic growth in the US and overseas.
The Australian dollar is rebounded against a rallying US dollar, supported by strong iron ore prices.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market
The Australian share market looks set to follow Wall Street’s recording making lead and open higher.
At 0700 AEDT on Thursday, the share price futures index was up 32 points, or 0.53 percent, at 6,063.
No major economic or equities news is expected on Thursday.
The Australian market on Wednesday closed higher as surging iron ore and coking coal prices helped lift energy and mining sectors.
The benchmark S&P/ASX200 index rose 9.1 points, or 0.15 percent, to 6,070.4 points.
The broader All Ordinaries index lifted 9.3 points, or 0.15 percent, at 6,175.3.
Meanwhile, the Australian dollar has yo-yoed back up against a US dollar that has strengthened following signs strong US economic momentum with US factory activity increasing more than expected in December.
US Markets
The S&P 500 index has risen above 2,700 for the first time and other major indexes hit record highs as technology stocks climbed amid indications of robust economic growth in the US and overseas.
Stocks held gains following the release of minutes of the Federal Reserve’s latest policy meeting. Details of the meeting showed that policymakers were worried over the fate of currently low inflation and saw the recent tax changes as providing a boost to the economy.
A report showed US factory activity increased more than expected in December, in a further sign of strong economic momentum at the end of 2017. Meanwhile, manufacturing surveys pointed to a strong start for the European economy.
In late trade, the Dow Jones Industrial Average was up 0.29 percent at 24,895.30, the S&P 500 had gained 0.55 percent to 2,710.75 and the Nasdaq Composite had added 0.81 percent, to 7,059.75.
Commodities
Gold prices fell in aftermarket trading Wednesday, after minutes from the Federal Reserve’s latest monetary policy meeting showed the central bank mulling a faster pace of rate increases this year.
Gold for January delivery was recently down 0.3% at $1312.10 a troy ounce in electronic trading. Prices closed up 0.2% at $1,316.20 a troy ounce in regular trading on the Comex division of the New York Mercantile Exchange.
In base metals, copper for January delivery was down 0.6% to $3.2370 a pound.
IRON ORE: $72.60 -0.67(February contract)
Oil Futures
Oil rose Wednesday to levels last seen in mid-2015 as anti-government protests continued in Iran, raising concerns over the potential for disruptions to crude output from OPEC’s third-largest producer.
February West Texas Intermediate crude on the New York Mercantile Exchange added $1.01, or 1.7%, to $61.38 a barrel, leaving it poised for its highest close since June 2015. The U.S. crude benchmark rose 12.5% last year, according to data from Dow Jones.
Forex
The U.S. dollar advanced on Wednesday, helped by better-than-expected manufacturing and construction data, halting its recent selloff and breaking a five-session losing streak as traders waited for the latest update from the Federal Reserve.
The ICE U.S. Dollar Index rose 0.4% to 92.197, rebounding from a more than three-month low reached on Tuesday. The broader WSJ U.S. Dollar Index, which measures the buck against a wider range of currencies, rose 0.2% to 85.82.
The euro fell to $1.2006 from $1.2061 late Tuesday in New York, when the shared currency traded around its highest dollar level since January 2015.
The pound dropped to $1.3512 from $1.3589 on Tuesday, yanked lower by a disappointing reading on the U.K. construction sector.
The yen was largely flat against the dollar, with the greenback buying ¥112.35 compared with ¥112.29 on Tuesday.
Australian Dollar:
The Australian dollar is rebounded against a rallying US dollar, supported by strong iron ore prices.
At 0635 AEDT on Thursday, the Australian dollar was worth 78.32 US cents, up from 78.22 US cents on Wednesday.
European Markets
European shares on Wednesday recovered from a muted start to the year as a rising US dollar boosted exporters and new records on Wall Street lifted spirits on a day devoted to the implementation of the new European MiFID II market rules.
Eurozone blue chips gained 0.6 percent and the pan-European STOXX 600 index closed up 0.5 percent while trading volumes were slightly up from the previous session despite new financial regulations kicking in.
A greenback rally triggered by upbeat U.S. manufacturing and construction data ahead of the release of the Federal Reserve’s December policy meeting minutes helped blue chips in France and in Germany.
Frankfurt’s DAX jumped 0.83 percent to 12,978.21.
Asian Markets
Asian stocks struck a range of new peaks on Wednesday as risk appetites were whetted by a feast of upbeat manufacturing surveys that confirmed a synchronised upturn in the world economy was well underway.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.36 percent. It’s creeping ever closer to the all-time peak of 591.50 reached in late 2007.
Tokyo remained closed.
Hong Kong shares rose for the seventh straight session on Wednesday to a fresh decade-high, aided by strength in index heavyweight Tencent and consumer goods stocks.
The Hang Seng index rose 0.15 percent to 30,560.95, while the Hang Seng China Enterprises Index gained 0.17 percent to 12,088.99.
China’s main Shanghai Composite index closed up 0.62 percent at 3,369.11 points while its blue-chip CSI300 index ended up 0.59 percent 4,111.39.
The S&P/NZX50 Index gained 0.3 percent, to 8424.91, on its first day of trading in 2018.

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