Thursday: 29th March 2018

OPENING CALL: The Australian share price futures index last traded early on Friday morning before the Easter long weekend, ending 10 points, or 0.17 percent higher, at 5,746.

The Australian share market is expected to open lower after the major Wall Street stock indexes fell around two percent.

Wall Street shares plunged on Monday as investors fled technology stocks amid resurgent trade war worries, with key indexes trading below their 200-day moving averages and the S&P 500 closing below that pivotal technical level for the first time since Britain’s vote to leave the European Union in June 2016.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market is expected to open lower after the major Wall Street stock indexes fell around two per cent.
US stocks on Monday plunged as as investors fled technology stocks amid resurgent trade war worries.
Australian, Hong Kong and most European markets were closed on Friday and Monday, for the Good Friday and Easter Monday public holidays.
The Australian share price futures index last traded early on Friday morning before the Easter long weekend, ending 10 points, or 0.17 per cent higher, at 5,746.
The benchmark S&P/ASX200 closed down 30.1 points, or 0.52 per cent, at 5,7594 points, while the broader All Ordinaries index finished down 30.3 points, or 0.51 per cent, at 5,868.9 points.
In economics news on Tuesday, the Reserve Bank board will meet and is expected to keep its cash rate unchanged, ANZ will release the results of its weekly consumer confidence survey and its job ads report for March.

US Markets

Wall Street shares plunged on Monday as investors fled technology stocks amid resurgent trade war worries, with key indexes trading below their 200-day moving averages and the S&P 500 closing below that pivotal technical level for the first time since Britain’s vote to leave the European Union in June 2016.
The first trading day of the second quarter began with a broad selloff concentrated in the technology and consumer discretionary sectors, as losses by Amazon.com, Tesla and Microsoft, among others, took centre stage from retaliatory trade measures China unveiled on Sunday.
“It’s more complicated than just a tech selloff. What’s hurting everything is that the S&P went through its 200-day moving average,” said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago. “That attracts momentum sellers and they don’t care what the fundamentals are.”
At the close of trade, the Dow Jones Industrial Average was down 458.92 points, or 1.9 per cent, to 23,644.19 after dipping below its 200-day moving average. The S&P 500 fell 58.99 points, or 2.23 per cent, to 2,581.88 and the Nasdaq Composite dropped 193.33 points, or 2.74 per cent, to 6,870.12.

Commodities

The spot price of gold in Sydney at 0700 AEST was $US1,340.94 per fine ounce, from $US1,328.10 per fine ounce on Thursday.
IRON ORE: $65.53 +1.74(April contract)

Oil Futures

Oil prices slid to a two-week low on Monday, following stocks lower as heightened concerns over a trade war between the U.S. and China hit markets.
Light, sweet crude for May delivery fell $1.93, or 3%, to $63.01 a barrel on the New York Mercantile Exchange, its lowest close since March 19. Brent, the global benchmark, declined $1.70, or 2.5%, to $67.64 a barrel.

Forex

The dollar crept higher against a broad range of currencies Monday, as a sharp drop in equities sent investors into haven assets.
The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, was up less than 0.1% at 83.77 in late afternoon New York trading.
Sliding technology shares and rising global trade tensions put pressure on major indexes Monday, with the S&P 500 down 2.2%. The steep decline benefited assets that tend to draw buying when markets turn rocky, such as the dollar, Japanese yen and gold.
The dollar was down 0.2% against the yen at Y105.91. The euro fell 0.2% to $1.2301.

Australian Dollar:
The Australian dollar has hit a fresh three-month low after US stocks plunged as traders sold off tech stocks.
At 0635 AEST on Tuesday, the local currency was worth 76.60 US cents, down from 76.79 US cents on Thursday.

European Markets

Major European markets were closed on Friday and Monday for the Good Friday and Easter Monday public holidays.

Asian Markets

Asian stocks began the new quarter on Monday with modest gains following a strong performance by global equities last week, while the dollar held steady ahead of key economic indicators.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.15 per cent.
South Korea’s KOSPI was down 1.7 per cent, and Japan’s Nikkei fell 0.3 per cent.
Shanghai was down 0.3 per cent.
Many major financial centres were closed for the Good Friday Easter holiday. Markets in Australia, and Hong Kong remained shut on Monday while the US market resumed trading.
The New Zealand stocks market was closed on Friday and Monday, for the Good Friday and Easter Monday public holidays, and on Thurday the S&P/NZX 50 index fell 0.82 per cent, to 8,319.07.

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