Wednesday: 27th June 2018

OPENING CALL: The Australian market looks to open lower with SPI Futures down 16 points.

The Australian share market looks set to open firmly lower even as oil prices surge more than two percent and iron ore lifts more than $US1, and Wall Street lifts.

US stocks have found their footing, helped by gains in the energy, technology, and consumer discretionary sectors after a sharp sell-off a day earlier on spiraling global trade tensions.

Overnight Summary


Market Quotes by TradingView

Each Market In Focus

Australian Market

The Australian share market looks set to open firmly lower even as oil prices surge more than two per cent and iron ore lifts more than $US1, and Wall Street lifts.
At 0700 AEST on Wednesday, the share futures index was down 16 points, or 0.26 per cent, at 6,136.
No major economic or equities news is expected on Wednesday, but CSR has its annual general meeting scheduled.
The Australian market on Tuesday closed lower with falls across the energy, resource and healthcare sectors pushing equities into the red amid increasing investor fears of a global trade war.
The benchmark S&P/ASX200 index closed down 12.8 points, or 0.21 per cent, at 6,197.6 while the broader All Ordinaries was down 16.6 points, or 0.26 per cent, at 6,292.1 points, following big falls on global markets overnight.

US Markets

US stocks have found their footing, helped by gains in the energy, technology and consumer discretionary sectors after a sharp sell-off a day earlier on spiralling global trade tensions.
Energy stocks added the most gains among the S&P 500’s 11 major sectors, climbing 1.4 per cent as Washington pushed allies to halt imports of Iranian crude, which lifted oil prices more than 2 per cent.
Technology stocks advanced after having slid on Monday upon conflicting statements from Trump administration officials on restrictions on foreign investment in US technology firms. Apple Inc, which rose 1.2 per cent, snapped a three-day losing streak.
A Bloomberg report that Canada is preparing steel quotas and tariffs on China also may have eased investor worries by lending support to US President Donald Trump’s negotiating tactics.
The Dow Jones Industrial Average rose 0.12 per cent, to 24,283.11, the S&P 500 gained 0.22 per cent, to 2,723.06 and the Nasdaq Composite added 0.39 per cent, to 7,561.63.

Commodities

The spot price of gold in Sydney at 0700 AEST was $US1,258.74 per fine ounce, from $US1,263.317 per fine ounce on Tuesday.
IRON ORE: $64.29 -0.29(July contract)

Oil Futures

Oil futures surged, with the U.S. benchmark settling above $70 for the first time since May, buoyed by news that the U.S. is pushing for countries to cut Iran oil imports to zero by November, and uncertainty over Libyan crude exports.

Forex

The U.S. dollar strengthened, rebounding from a lower start to the week, though the trade spat between the U.S. and its allies and partners continued to weigh.
“The global capital markets have stabilized today after yesterday’s rout in equities, softer yields, and U.S. dollar strength,” said a note from Brown Brothers Harriman.
The ICE U.S. Dollar Index was up 0.5% at 94.759. With only four days left in the second quarter and first half of the year, the dollar gauge is on track to have gained 4.9% in the quarter and 2.7% since the beginning of the year.
The broader WSJ Dollar Index was up 0.4% at 88.07.
The Australian dollar has fallen below 74 US cents amid a rebound in the US dollar as trade tensions continue and investors focus on hopes of Federal Reserve rate rises.
At 0635 AEST on Wednesday, the Australian dollar was worth 73.93 US cents, down from 74.04 US cents on Tuesday.

European Markets

Commodities helped UK shares make progress in recouping losses from the
previous session when fears of a full-blown trade war between the United States and the rest of the world led them to their worst performance since February.
Following a slow start, the FTSE 100 accelerated gains and ended the session up 0.4 per cent at 7,537.92 points after a 2.2 per cent loss on Monday.
While most European bourses were back in the black, Jasper Lawler, head of research at London Capital Group, argued that with trade tensions persisting, there was no reason for sentiment to shift.
It was a choppy session for European shares on Tuesday, which initially saw a modest bounce after trade tensions triggered losses the previous day, but ran out of steam to close flat.

Asian Markets

In Asia, Japanese shares recovered after slumping to 3-1/2-week lows on Tuesday, as recently battered stocks rose on short-covering, despite worries about global trade tensions.
The Nikkei clawed its way back to end flat at 22,342.00, after falling 1 per cent in early trade to 22,104.12, the lowest level since June 1.
Banks and shippers rose, with Mitsubishi UFJ Financial Group gaining 1.0 per cent and Sumitomo Mitsui Financial Group 0.9 per cent.
Hong Kong stocks fell slightly, closing at a fresh six-month low, as sentiment remained subdued by fears of a Sino-US trade war.
The Hang Seng index fell 0.3 per cent, to 28,881.40, while the China Enterprises Index lost 0.8 per cent, to 11,118.89 points.
China joined the global sell-off, with its share markets falling as escalating trade friction between the United States and other major economies steered investors away from riskier assets.
The blue-chip CSI300 index fell 0.8 per cent to 3,531.11 points, while the Shanghai Composite Index slid 0.5 per cent to 2,844.51 points.
New Zealand’s S&P/NZX 50 index lost just 0.07 per cent to 8989.80.

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