Tuesday: 5th Jun 2018

OPENING CALL: The Australian market looks to open flat with SPI Futures down 23 points.

The Australian share market looks set to open more than a third of a per cent lower, despite strong gains on international markets.

Wall Street’s three major indexes have risen, led by a rally in tech stocks that has pushed the Nasdaq to a record closing high as investors bet on a continuation of strong economic growth, while falling oil prices have weighed on the energy sector.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market looks set to open more than a third of a per cent lower, despite strong gains on international markets.
At 0700 AEDT on Tuesday, the share price futures index was down 23 points, or 0.38 per cent, at 6,003.
Locally, in economic news on Tuesday, The Reserve Bank of Australia announces its decision on the interest rate, while the Australian Bureau of Statistics releases the March quarter’s Balance of Payments and its International Investment Position data.
The Ai Group’s Australian Performance of Services Index and the ANZ-Roy Morgan Consumer Confidence weekly survey are due out.
The aviation industry’s most prominent global summit featuring airline leaders and delegates from around wraps up in Sydney.
Macquarie Asset Management head Shemara Wikramanayake is slated to speak at an AmCham lunch in Sydney, while Qantas chief executive Alan Joyce is scheduled to speak at the CAPA Airline CEO Summit in Sydney.
No major equities news is expected.
The Australian market on Monday closed higher despite fading a little in afternoon trading, with stocks boosted by strong monthly US jobs data and better-than-expected Australian retail spending figures for April.
The benchmark S&P/ASX200 index rose 35.1 points, or 0.59 per cent to 6,025.5 points, and while the broader All Ordinaries lifted 34.6 points, or 0.57 per cent, to 6,138.6 points.
Meanwhile, the Australian dollar has extended its rally prompted by the strong retail sales data.

US Markets

Wall Street’s three major indexes have risen, led by a rally in tech stocks that has pushed the Nasdaq to a record closing high as investors bet on a continuation of strong economic growth, while falling oil prices have weighed on the energy sector.
Apple shares rose to their highest ever due to investor bets on its annual developers conference and Microsoft impressed with an acquisition, pushing the S&P 500 technology index to a record high, while Amazon.com led consumer stocks higher.
Better-than-expected US jobs data for May were still key to investor optimism as traders turned their focus away from recent trade war fears.
The Dow Jones Industrial Average rose 0.72 per cent, to 24,813.69, the S&P 500 gained 0.45 per cent, to 2,746.87, and the Nasdaq Composite added 0.69 per cent, to 7,606.46, a record closing high.

Commodities

The spot price of gold in Sydney at 0700 AEDT was $US1291.80 per fine ounce, from $US1,291.267 per fine ounce on Monday.
IRON ORE: $64.38 -0.07(July contract)

Oil Futures

Oil prices fell to the lowest point since early April as traders anticipated growing domestic and global crude supplies.

Forex

The U.S. dollar weakened against other major currencies Monday but was off its lows, as investors digested signs of rising trade tensions and anticipated the meeting of leaders of the Group of Seven nations later in the week.
The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, fell 0.1% to 87.12.

The Australian dollar has continued to climb against its US counterpart after positive retail sales figures boost the local currency and as the US dollar index falls.
At 0635 AEDT on Tuesday, the Australian dollar was worth 76.48 US cents, up from 76.31 US cents on Monday.

European Markets

European shares extended a recovery on Monday as dealmaking took centre stage after a week of political tension in Italy and Spain as well as friction between the United States and its allies over trade policies.
Investors’ concerns over trade were overshadowed by very strong US jobs data on Friday, which helped Wall Street to rise for a second day on Monday.
Europe’s STOXX 600 gained 0.3 per cent and Germany’s DAX 0.37 per cent to 12,770.75.
News about mergers and acquisitions, particularly in the financial sector, drove the biggest moves.
British shares also rose as a flurry of deals lifted investor spirits and helped brush aside fears of a full-blown trade war between the US and some of its closest partners.
The blue chip FTSE 100 index ended 0.51 per cent higher, at 7,741.29, amid optimism across trading centres in Europe about the political situation in Italy and Spain.

Asian Markets

Asian stocks also lifted.
MSCI’s Asia ex-Japan stock index was firmer by 1.22 per cent while Japan’s Nikkei index closed up 1.37 per cent to 22,475.94.
Hong Kong stocks followed Asian markets higher, as strong US jobs data offset worries that tariff wars between the United States and the rest of the world could retard global economic growth.
The Hang Seng index rose 1.66 per cent, to 30,997.98, while the China Enterprises Index gained 1.9 per cent, to 12,249.58 points.
China stocks lifted, aided by a rebound in consumer and real estate shares.
The Shanghai Composite Index rose 0.52 per cent to 3,091.19. The blue-chip CSI300 index rose 0.98 per cent to 3,807.58.
New Zealand’s S&P/NZX 50 index was closed on Monday.

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