Tuesday: 13th March 2018

OPENING CALL: The Australian market looks to open flat with SPI Futures up 3 points.

Australian stocks are expected to have a flat opening, following losses on Wall Street and in commodity prices.
The S&P 500 and the Dow Jones Industrial Average fell on Monday as worries about the metal tariffs signed into law last week by President Donald Trump weighed on industrial stocks.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

Australian stocks are expected to have a flat opening, following losses on Wall Street and in commodity prices.
At 0700 AEDT on Tuesday, the Australian share price futures index was up three points, or 0.05 per cent, at 5,992.
The Australian share market on Monday closed higher after regional markets lifted on jobs data positivity out of the US and Australian markets strengthened on the exemption from US tariffs on imported steel and aluminium..
The benchmark S&P/ASX200 was up 32.9 points, or 0.55 per cent, at 5,996.1 points, while the broader All Ordinaries index ended up 32.3 points, or 0.53 per cent, at 6,101.4 points.
In economic news on Tuesday, the Australian Bureau of Statistics releases housing finance data for January, the ANZ-Roy Morgan Consumer Confidence weekly survey is out, and the National Australia Bank monthly business survey is released.

US Markets

The S&P 500 and the Dow Jones Industrial Average fell on Monday as worries about the metal tariffs signed into law last week by President Donald Trump weighed on industrial stocks.
Shares of companies such as Boeing Co, down 2.6 per cent, and Caterpillar Inc, down 2.3 per cent, have been under pressure as Trump’s protectionist stance on steel and aluminum imports could increase costs and hamper sales abroad. Boeing and Caterpillar were the biggest decliners on the Dow.
Trump last week softened his stance on tariffs by exempting Canada and Mexico, but negotiations are ongoing as the European Union and Japan also seek exemptions.
“The big multinational, industrial companies of the world are all taking a hit on the concern that they will be the targets of reprisal sanctions,” said Robert Phipps, a director at Per Stirling Capital Management in Austin.

Commodities

Gold prices inched lower Monday, with stocks rising, as focus shifted away from the geopolitical and economic risks that had worried investors in recent sessions.
Front-month gold for March delivery fell 0.2% to $1,319.40 a troy ounce on the Comex division of the New York Mercantile Exchange. Prices have stayed between roughly $1,305 and $1,360 this year, swinging based on investors’ risk appetites, moves in the dollar and concerns about higher interest rates.
IRON ORE: $68.29 -0.81(April contract)

Oil Futures

Oil prices settled with a loss on Monday, giving back part of the sharp gains seen in the previous session as recent data showed a rise in weekly U.S. output, as well as expectations for a further increase in domestic production next month. In a monthly report issued Monday, the Energy Information Administration forecast a monthly rise of 131,000 barrels a day in April U.S. oil production. April West Texas Intermediate crude fell 68 cents, or 1.1%, to settle at $61.36 a barrel on the New York Mercantile Exchange.

Forex

The U.S. dollar edged lower Monday as investors sought confirmation about the pace of inflation after last week’s weaker-than expected report on wage growth.
The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, declined by 0.1% to 83.71. The currency was lower against the euro and the Japanese yen.

Australian Dollar:
The Australian dollar is slighlty higher, but has lost ground late in the offshore session, as US stocks suffered a fall.
At 0635 AEDT on Tuesday, the local currency was worth 78.76 US cents, up from 78.70 US cents on Monday.

European Markets

Britain’s top share index lagged other European markets on Monday due to weak energy stocks and dollar earners, with GKN also falling after it rejected a final offer from Melrose.
Early gains for the FTSE 100 quickly petered out and it ended the session down 0.1 per cent, missing out on a rally that lifted European stocks, with Germany’s DAX up 0.6 per cent.
Falls in UK-listed miners and oil majors had a big influence as the price of metals and crude fell.
A stronger pound weighed on big dollar-earnings stocks such as consumer staples.
Shares in Reckitt Benckiser and tobacco makers British American Tobacco and Imperial Brands fell between 0.4 per cent and 1.9 per cent.
Sterling rose on optimism that a Brexit transition deal might be agreed next week, after a junior minister said Britain was very close to sealing one with the European Union.

Asian Markets

A relief rally swept across Asian share markets on Monday after the latest US jobs report managed to impress with its strength while also easing fears of inflation and faster rate hikes, a neat feat that whetted risk appetites globally.
MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1.3 per cent, poised for a third session of gains.
South Korea rose one per cent while Japan’s Nikkei jumped 1.2 per cent, showing little immediate reaction as Prime Minister Shinzo Abe came under renewed fire over suspicions of cronyism involving the sale of state-owned land..
Inflation worries faded on Friday after US data showed nonfarm payrolls jumped by 313,000 jobs last month, but annual growth in average hourly earnings slowed to 2.6 per cent after a spike in January.
The pullback in wages tempered speculation the Federal Reserve would project four rate hikes – or dot plots – at its policy meeting next week, instead of the current three.
The S&P/NZX 50 index on Monday rose 0.88 per cent, to 8,463.99.

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