Wednesday: 16th May 2018

OPENING CALL: The Australian market looks to open lower with SPI Futures down 7 points.

The Australian share market is expected to open lower after US stocks fell almost one per cent, after the release of disappointing US retail spending data and worries about US-China trade relations.

A surge in US government bond yields to their highest level in almost seven years sent Wall Street shares sliding on Tuesday after strong retail sales data stoked inflation concerns and investors fretted about looming trade talks between the United States and China.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market is expected to open lower after US stocks fell almost one per cent, after the release of disappointing US retail spending data and worries about US-China trade relations.
At 0700 AEST on Wednesday, the Australian share price futures index was down seven points, or 0.11 per cent, at 6,093 points.
The Australian share market on Tuesday closed lower, suffering losses across most sectors, including sharp falls in the telco sector following Telstra’s earnings warning.
The benchmark S&P/ASX200 was down 37.5 points, or 0.61 per cent, at 6,097.8 points, while the broader All Ordinaries index was down 36.3 points, or 0.58 per cent, at 6,198.7 points.
In economics news on Wednesday, the Australian Bureau of Statistics releases its wage price index for the March quarter, and the Westpac Index of Consumer Sentiment for April is due out.
In equities news, department store giant Myer releases its third quarter sales, and Coca-Cola Amatil hold its annual general meeting.

US Markets

A surge in US government bond yields to their highest level in almost seven years sent Wall Street shares sliding on Tuesday after strong retail sales data stoked inflation concerns and investors fretted about looming trade talks between the United States and China.
All three major US stock indexes closed down, with the S&P 500 ending a four-day winning streak and the Dow Jones Industrial Average posting its first loss in eight sessions.
The yield on 10-year US Treasury notes jumped to its highest level since July 2011, suggesting an uptick in inflation and sending the dollar index to its highest close in 2018, raising expectations for further interest rate hikes from the Federal Reserve.

Commodities

The spot price of gold in Sydney at 0700 AEST was $US1,291.30 per fine ounce, from $US1,311.90 per fine ounce on Tuesday.
IRON ORE: $67.71 -0.85 (June contract)

Oil Futures

U.S. oil settled higher as tensions in the Middle East helped to extend gains in crude futures.

Forex

The U.S. dollar rose for a second day in a row, giving a key measure of the buck’s strength its best day since late March, as rising rates on U.S. Treasury bonds underpinned appetite for the currency.
The ICE U.S. Dollar Index was up 0.7% at 93.237 late in the U.S. trading day, rising for a second straight day and hitting a four-day high. The dollar gauge recorded its best daily performance in seven weeks, according to FactSet data.
A broader measure of the greenback, tracking 16 rival monetary units, the WSJ Dollar Index rose 0.6% to 86.91.
The Australian dollar is lower after US stocks fell almost one per cent, amid worries about US-China trade relations and the release of disappointing US retail spending figures.
At 0635 AEST on Tuesday, the local currency was worth 74.73 US cents, from 75.18 US cents on Tuesday.

European Markets

Britain’s top share index hit a four-month high on Tuesday as oil majors
rallied, though Vodafone’s shares struggled after the world’s second largest mobile operator said its boss was leaving.
The FTSE blue-chip benchmark ended the day up 0.2 per cent, while Vodafone’s shares fell 4.3 per cent, the worst-performing on the index.
In Germany the DAX 30 index was down 0.06 per cent, while France’s CAC 40 was up 0.23 per cent.
Vodafone, which also announced its full-year results, said CEO Vittorio Colao, who spent 10 years reshaping the group into a digital communications powerhouse, would be replaced by its current finance director.

Asian Markets

Asian stocks pulled back on Tuesday, as investors turned cautious after soft Chinese economic data and awaited fresh developments on US-China trade talks and North Korea.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.8 per cent after rising the previous day to its highest since late March. The index had rallied for three straight sessions prior to Tuesday.
Japan’s Nikkei dipped 0.2 per cent, with its surge to a three-month peak bogging down.
On Tuesday, New Zealand’s S&P/NZX 50 index fell 0.05 per cent, to 8,708.78.

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