Tuesday: 17th April 2018

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

The Australian share market is expected to open flat despite gains in metals prices and gains on Wall Street on the back of some strong company earnings.

US stocks closed higher on Monday, getting a boost from the technology and healthcare sectors as investors were optimistic about earnings season and appeared less worried about US-led missile attacks in Syria.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market is expected to open flat despite gains in metals prices and gains on Wall Street on the back of some strong company earnings.
At 0700 AEST on Tuesday, the Australian share price futures index was steady at 5,820.
The Australian share market on Monday closed in positive territory, led by the energy sector as investors rallied around hopes that tension in Syria and the China-US trade dispute have both peaked.
The benchmark S&P/ASX200 was up 12.2 points, or 0.21 per cent, at 5,841.3 points, while the broader All Ordinaries index was up 8.3 points, or 0.14 per cent, at 5,933.0 points.
In economics news on Tuesday, the Reserve Bank releases the minutes of its monthly policy meeting and cash rate decision, and the results of the ANZ-Roy Morgan consumer confidence weekly survey are due out
In equities news, Oil Search releases its first quarter production report, and the Bank of Queensland half year results are scheduled to be released.
The Australian dollar on Tuesday morning is higher, after Wall Street closed on an upbeat note.

US Markets

US stocks closed higher on Monday, getting a boost from the technology and healthcare sectors as investors were optimistic about earnings season and appeared less worried about US-led missile attacks in Syria.
The weekend’s air strikes marked the biggest intervention yet by Western countries against Syrian President Bashar al-Assad and his ally Russia, which is facing further economic sanctions over its role in the conflict.
Stocks had ended lower on Friday on worries about Syria. But investors seemed less anxious about he potential for retaliation from Russia, an Assad ally, since there was none at the weekend.
“Geopolitical conditions calmed,” said Tim Ghriskey, Chief Investment Strategist at Inverness Counsel in New York. “There’s a lot of anticipation about very strong earnings growth in the quarter. That may be attracting traders and even longer-term investors back into the market.”
Netflix shares gained around seven per cent after the market closed following its quarterly report. Its subscriber growth beat analyst expectations. It had ended the regular session down 1.2 per cent.
S&P 500 companies are expected to report an 18.6 per cent jump in first-quarter profit, on average, the biggest rise in seven years, according to Thomson Reuters data.
The Dow Jones Industrial Average rose 212.9 points, or 0.87 per cent, to 24,573.04, the S&P 500 gained 21.54 points, or 0.81 per cent, to 2,677.84 and the Nasdaq Composite added 49.63 points, or 0.7 per cent, to 7,156.28.

Commodities

The spot price of gold in Sydney at 0700 AEST was $US1,345.38 per fine ounce, from $US1,343.33 per fine ounce on Monday.
IRON ORE: $64.11 -1.06(May contract)

Oil Futures

Oil ended lower on Monday, giving back some of last week’s sharp gains amid fading worries of potential retaliation from Russia following weekend airstrikes on the country’s ally Syria.

Forex

The Canadian dollar and Mexican peso rose against the dollar Monday, reflecting fresh optimism on trade negotiations with the U.S.
The dollar was recently down 0.1% against the Mexican peso to 18.02, its lowest level since late September. The U.S. currency was down 0.2% against the Canadian dollar to C$1.2573, hovering near a two-month low.
Some investors have become more optimistic that negotiators are closer to reaching a deal to revise the North American Free Trade Agreement, or Nafta, after reports that the Trump administration is hammering out a compromise on auto-industry rules.

Australian Dollars:
The Australian dollar is higher, after Wall Street closed on an upbeat note as optimism about the coming company earnings season overshadows the weekend’s US-led missile attack on Syria.
At 0635 AEST on Tuesday, the local currency was worth 77.83 US cents, up from 77.55 US cents on Monday.

European Markets

UK shares eased, with two corporate events taking centre stage: CEO Martin Sorrell’s exit from advertising company WPP and US hedge fund Elliott Management raising its stake in hotel and coffee-shop operator Whitbread.
The blue chip FTSE 100 index ended the session down 0.9 per cent at 7,198.20 points, with traders across Europe remaining cautious, fearing that the weekend’s missile strikes in Syria could increase tensions between the United States and Russia.
Germany’s DAX 30 index closed 0.4 per cent lower, and in France the CAC 40 index was down 0.04 per cent.
Relief over the lack of an immediate escalation of military action pushed oil prices lower and UK energy stocks followed suit. BP was down 1.6 per cent and Royal Dutch Shell 0.7 per cent.
Shares in WPP ended 6.5 per cent down as investors gauged how the world’s biggest advertising agency would do without its founder, gone after an allegation of personal misconduct.

Asian Markets

Asian share markets were mixed and oil prices fell on Monday as relief US-led strikes on Syria looked unlikely to escalate was tempered by concerns at Russia’s potential reaction to new sanctions from Washington.
Japan’s Nikkei rose 0.3 per cent. Yet MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.4 per cent as Chinese blue chips skidded 1.7 per cent.
The United States, France and Britain launched 105 missiles targeting what the Pentagon said were three chemical weapons facilities in Syria in retaliation for a suspected poison gas attack in Douma on April 7.
Russian President Vladimir Putin warned on Sunday that further Western attacks on Syria would bring chaos to world affairs, as Washington prepared to increase pressure on Russia with new economic sanctions.
But with President Donald Trump declaring mission accomplished, investors wagered the worst had been avoided.
On Monday, New Zealand’s S&P/NZX 50 index fell 0.1 per cent, to 8,406.35.

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