Tuesday: 10th April 2018

OPENING CALL: The Australian market looks to open flat with SPI Futures unchanged.

The Australian share market is expected to open flat after Wall Street stocks handed back earlier gains following a report of an FBI raid on the office of Donald Trump’s lawyer.

Wall Street’s major indexes each closed higher as technology stocks jumped and a softer stance by US policymakers on China tariffs powered a rebound from last week’s sell-off.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market is expected to open flat after Wall Street stocks handed back earlier gains following a report of an FBI raid on the office of Donald Trump’s lawyer.
At 0700 AEST on Tuesday, the Australian share price futures index was flat at at 5,793.
The Australian share market on Monday closed higher, ignoring China-US trade war fears that contributed to heavy falls on Wall Street at the end of last week.
The benchmark S&P/ASX200 was up 20 points, or 0.35 per cent, at 5,808.7 points, while the broader All Ordinaries index was up 17.8 points, or 0.3 per cent, at 5,904.7 points.
In economics news on Tuesday, the results of the weekly ANZ-Roy Morgan Consumer Confidence are due out, and the National Australia Bank releases its monthly business survey.
In equities news, John Johnston, who first launched vacuum cleaner business Godfreys in 1936 with Godfrey Cohen in Melbourne, has launched a 32 cents-a-share bid to take the business off the ASX.

US Markets

Wall Street’s major indexes each closed higher as technology stocks jumped and a softer stance by US policymakers on China tariffs powered a rebound from last week’s sell-off.
Stocks pared much of their gains late in the session after a report that the Federal Bureau of Investigation raided the office of President Donald Trump’s lawyer.
Technology and health stocks led the benchmark S&P 500’s major sectors. Merck & Co Inc was the biggest boost to the Dow, while gains in Apple shares led the Nasdaq index.
Stocks climbed after Trump’s new economic adviser Larry Kudlow told CNBC that the president may be open to forming an international coalition to grapple with trade issues involving China.
Investors will look for further signs of China’s stance on trade relations when Chinese President Xi Jinping speaks at the Boao Forum economic conference on Tuesday.
But stocks began paring gains late in the afternoon, a downward trend that accellerated after a report that the FBI had raided the New York office of Michael Cohen, Trump’s personal lawyer, upon a referral by Special Counsel Robert Mueller.

Commodities

The spot price of gold in Sydney at 0700 AEST was $US1,336.09 per fine ounce, from $US1,331.33 per fine ounce on Monday.
IRON ORE: $64.32 +1.47(May contract)

Oil Futures

Oil prices rose along with broader markets Monday as fears surrounding a trade war between the U.S. and China receded and oil investors turned their attention to rising tensions in the Middle East.

Forex

The dollar slipped Monday, as investors pondered how a trade spat with China will impact the U.S. economy.
The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, was down 0.2% at 83.83 in late-afternoon trading in New York.
Policy makers appeared to soften their tone on trade in recent days, after harsher rhetoric roiled markets at the end of last week. Still, the trade conflict between the U.S. and China looms large in investors minds, said Mark McCormick, North American Head of FX Strategy at TD Securities.

Australian Dollar:
The Australian dollar is slightly higher as US stocks rise on the back of easing fears about a trade war between China and the US.
At 0635 AEST on Tuesday, the local currency was worth 76.99 US cents, up from 76.92 US cents on Monday.

European Markets

Worries over global trade took a backseat as Britain’s top share index advanced on Monday, though stocks with links to Russia fell on further US sanctions.
The blue chip FTSE 100 index ended up 0.15 per cent at 7,194.75 points, buoyed by financials and industrials, while Germany’s Dax rose 0.17 per cent, and France’s CAC was up 0.1 per cent.
Last week global risk assets were hit by the prospect of a full-blown trade war after the United States and China threatened each other with tens of billions of dollars worth of tariffs.
Those fears eased after US President Donald Trump predicted on Sunday there would be concessions from China.
But US sanctions imposed on Friday on 24 Russian businessmen hit shares in Russia-exposed companies.
Russian steelmaker Evraz was a major loser, down 14 per cent. Miner Glencore fell 3.4 per cent while mid-cap Polymetal was down 18 per cent.
Shares in Jersey-based EN+ Group, which manages the assets of Russian tycoon Oleg Deripaska, dropped 41.9 per cent. Norilsk Nickel, in which Deripaska holds a stake, fell 18 per cent.

Asian Markets

Asian shares crept higher on Monday as a rally in US stock futures soothed sentiment ahead of a key speech by China’s President Xi Jinping.
Also helping market confidence was North Korea saying to the United States for the first time that it was prepared to discuss denuclearisation when their leaders meet.
MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.91 per cent higher, while Japan’s Nikkei rose 0.51 per cent and Hong Kong was up 1.29 per cent.
On Monday, New Zealand’s S&P/NZX 50 index rose 0.73 per cent, to 8,454.13.

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