Wednesday: 13th June 2018

OPENING CALL: The Australian market looks to open lower with SPI Futures down 8 points.

The Australian share market looks set to open slightly lower despite a mainly positive lead from Wall Street following the denuclearisation deal struck between the US and North Korea.

US stocks have ended mainly slightly higher, boosted by gains in technology and utilities shares, though investors were cautious ahead of the Federal Reserve’s policy decision.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market looks set to open slightly lower despite a mainly positive lead from Wall Street following the denuclearisation deal struck between the US and North Korea.
At 0700 AEST on Wednesday, the share price futures index was down eight points, or 0.13 per cent, at 6,047.
No major economic or equities news is expected on Wednesday.
However, Reserve Bank of Australia governor Philip Lowe is slated to speak at an Ai Group event in Melbourne.
The Australian market on Tuesday edged higher, supported by energy, health care and consumer-exposed stocks, as US President Donald Trump and North Korean leader Kim Jong-un held talks aimed at denuclearisation of the Korean peninsular.
The benchmark S&P/ASX200 index rose 9.2 points, or 0.15 per cent, to 6,054.4 points, while the broader All Ordinaries added 8 points, or 0.13 per cent, to 6,164.8 points.

US Markets

US stocks have ended mainly slightly higher, boosted by gains in technology and utilities shares, though investors were cautious ahead of the Federal Reserve’s policy decision.
The Fed is widely expected to raise interest rates for the second time this year when it concludes its policy meeting on Wednesday.
Investors are focused on how the Fed characterises its monetary policy, looking for hints if it would move to raise rates three or four times this year.
But shares of S&P 500 utilities, up 1.3 per cent, and technology, up 0.6 per cent, helped to lift the S&P 500.
Investors also awaited a court ruling, expected after the closing bell, that would decide the fate of AT&T Inc’s $US85 billion offer for Time Warner. Shares of AT&T ended up 0.5 per cent, while Time Warner was flat and Charter Communications gained 2.8 per cent.
The Dow Jones Industrial Average fell 0.01 per cent, to 25,320.73, the S&P 500 gained 0.17 per cent, to 2,786.85 and the Nasdaq Composite added 0.57 per cent, to 7,703.79.

Commodities

The spot price of gold in Sydney at 0700 AEST was $US1,296.95 per fine ounce, unchanged from Thursday.
IRON ORE: $65.64 +0.27(July contract)

Oil Futures

Oil prices rose after a monthly report from the global oil cartel showed solid demand alongside higher output.

Forex

The dollar rose as investors awaited the conclusion Wednesday of the Federal Reserve’s two-day monetary policy meeting.
The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently up 0.3% to 87.24.
Most market participants expect the Fed to raise rates. Investors will also be trying to determine whether the central bank plans to accelerate the pace of its rate increases this year. Expectations of higher rates tend to make the dollar more attractive to yield-seeking investors.
The Australian dollar is lower after the US currency strengthened following a report that Federal Reserve chair Jerome Powell was considering more post-meeting press conferences.
At 0635 AEST on Wednesday, the Australian dollar was worth 75.74 US cents, down from 76.10 US cents on Tuesday.

European Markets

Losses in miners and oil majors sent Britain’s top share index into the red on Tuesday, while housebuilding stocks tumbled after weak results from Crest Nicholson piled extra pressure on a sector already hit by a run of poor economic data.
A summit between President Trump and Kim Jong-un had limited impact on UK and European stock markets. The FTSE 100 fell 0.4 per cent, while the STOXX 600 edged down 0.1 per cent.
With a crucial vote on Brexit getting underway in the British parliament, a volatile sterling currency helped rein back the FTSE’s gains.
In Europe, the regional FTSEurofirst 300 index lost 0.01 per cent, and Germany’s DAX was flat at 12,842.30.
The European Central Bank meets on Thursday, with some expecting it to provide guidance for ending its bond-buying program at the end of this year.

Asian Markets

Japanese shares rose on Tuesday, buoyed by optimism the US-North Korea summit in Singapore could eventually pave the way to denuclearisation of the Korean peninsula.
The benchmark Nikkei average advanced 0.33 per cent to 22,878.35, its highest closing since May 22 and not far from its four-month intra-day high of 23,050.39. MSCI’s Asia ex-Japan stock index was firmer by 0.1 per cent.
Hong Kong stocks ended higher, after President Trump and Kim Jong-un signed a ‘comprehensive’ deal aimed at the denuclearisation of the Korean peninsula, while Washington committed to provide security guarantees for its old enemy.
The Hang Seng index closed up 0.1 per cent at 31,103.06 points, while the China Enterprises Index ended 0.3 per cent higher at 12,206.57 points.
Shanghai stocks recovered from early losses to end higher on Tuesday, as sentiment improved after President Trump and the North Korean leader signed the deal. The Shanghai Composite Index ended up 0.9 per cent at 3,079.80 points, snapping a three-session losing streak.
The blue-chip CSI300 index ended 1.2 per cent higher at 3,825.95 points.
New Zealand’s S&P/NZX 50 index was down just one point, or 0.01 per cent, at 8,958.81.

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