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Overseas Market Report

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Overseas Market Report - Dow Notches Up Tenth Straight Record Close

Thursday 23 February 2017 | Close

U.S. stocks finished mixed on Thursday after the Dow extended its hot streak, closing at a record for the tenth session in a row, while the Nasdaq logged its first back-to-back session declines of the year.

Thursday 23 February 2017 | Close

Foreign Equities Close Change %Change
Dow Jones (US) 20810 35 0.17
S&P 500 2364 1 0.04
NASDAQ 5836 -25 -0.43
FTSE 100 Index 7271 -31 -0.42
DAX 30 11948 -51 -0.42
CAC 40 4891 -5 -0.09
Nikkei 225 (Japan) 19371 -8 -0.04
HKSE 24115 -87 -0.36
SSE Composite Index 3251 -10 -0.30
NZ 50 7090 27 0.38

Thursday 23 February 2017 | Close

Commodities US$ Close Change %Change
Aluminium /t 1861 -15 -0.80
Copper /t 5845 -181 -3.00
Nickel /t 10526 -227 -2.12
Gold /oz 1249 8 0.60
Silver /oz 18.2 0.2 1.01
Oil - West Texas crude /bbl 53.6 -- --
Lead /t 2230 -37 -1.65
Zinc /t 2787 -73 -2.57

Thursday 23 February 2017 | Close

Currency Close Pts Change % Change
$A vs $US 0.7716 0.0021 0.27
$A vs GBP 0.6147 -0.0032 -0.52
$A vs YEN 86.93 -0.34 -0.39
$A vs EUR 0.7294 -- 0.00
$A vs $NZ 1.0673 -0.0043 -0.40
$US vs Euro 0.9451 -0.0023 -0.24
$US vs UK 0.7966 -0.0064 -0.79
$US vs CHF 1.0064 -0.0044 -0.44

U.S. stocks finished mixed on Thursday after the Dow extended its hot streak, closing at a record for the tenth session in a row, while the Nasdaq logged its first back-to-back session declines of the year.

According to media reports, investors remained concerned about lofty valuations, while uncertainty persisted about President Donald Trump's fiscal stimulus plans.

At the close, the Dow Jones was up 0.2%, the S&P 500 was flat, while the Nasdaq was down 0.4%.

In economic news, gold ended a three-session losing streak, settling at a three-month high.

In corporate news, Barclays (BCS) reported full-year 2016 net income on a group level of GBP 1.6 billion, versus a loss of GBP 394 million in 2015, mainly supported by lower litigation and conduct costs.

Telefonica (TEF) reported strong fourth-quarter results that led to 2016 financials above analysts' expectations. The firm reported organic revenue growth of 2.7% in the fourth quarter.

Tesla (TSLA) reported adjusted fourth-quarter EPS of a loss of $0.69 versus a loss of $2.02 in the fourth quarter of 2015. This loss missed analysts' consensus of a loss of $0.43.

For Australian ADRs listed on the NYSE, BHP Billiton slipped 70 cents (-1.76%) to $39.11, ResMed lost 76 cents (-1.05%) to $71.62, Telstra Corporation added 3 cents (0.16%) to $18.73, Spark New Zealand gained 18 cents (1.43%) to $12.75 and Westpac rose 3 cents (0.11%) to $26.41.

At 8:15 AM (AEDT), the 10-year Treasury note yield was 2.38% and the 5-year yield was 1.86%.

European stocks closed lower on Thursday, weighed down by banks and miners.

At the close, the FTSE 100, the French CAC 40 and Germany's DAX were down 0.4%, 0.1% and 0.4%, respectively.

Asian markets finished mostly lower.

The Nikkei 225 ended flat, while the Hang Seng and Shanghai Composite declined 0.4% and 0.3%, respectively. India's Sensex added 0.1%.

Australian Market

Local Markets Expected to Open Lower

Ahead of the local open, SPI futures were 9 points lower at 5,750.

Thursday 23 February - close. The Australian market tumbled at the open, weighed down by mining stocks. The ASX halved its early losses after hitting intraday lows, helped by positive results from Qantas, Crown and IAG, but this was not enough to recoup losses experienced by the big four banks and miners. There were mixed results from the sectors: industrials posted the biggest gains while materials lost most significantly. The Australian dollar fell against most major currencies, with the exception of the US dollar and British pound.

The All Ordinaries dropped 17.60 points to 5,832.50 while the S&P/ASX 200 fell 20.40 points to 5,784.70.

Telstra Corporation (TLS)

Telstra announced that it has sold its remaining 6.5% interest in Chinese online business Autohome to Ping An Insurance Group for A$282m based on current exchange rates. The divestment reflects that Ping An is well-established as a strategic partner for Autohome. The sale price of US$29.30 per share is in line with Autohome's volume weighted average price over the past 60 days, with Autohome recently trading at its highest levels in the past 12 months. TLS fell 3 cents to $4.82.

Qantas Airways (QAN)

Qantas Airways provided its 2017 half-year results media release. The company met all the objectives of its financial framework, reporting a rolling 12-month return on invested capital of 21.7%. A further $212m of transformation benefits were unlocked in the half, taking total benefits since 2014 to $1.9bn. It remains on track to reach its goal of $2.1bn by June 2017. Net debt is $5.97bn, with capital expenditure weighted to the first half. Its commitment to stay within its target range of $4.8 to $6bn is unchanged. QAN surged 19 cents to $3.74.

Westfield Corporation (WFD)

Westfield Corporation provided its full-year results and presentation. The company reported funds from operations (FFO) for the 12 months ended 31 December 2016 of $700m, in line with forecast. FFO per security was 33.7c, up 3.8% on a pro-forma basis. The distribution for the 12 months ended 31 December 2016 is 25.1c per security, also in line with forecast. Its financial position is strong with balance sheet assets of $21.1bn, a gearing ratio of 35.2%, and $2.8bn in available liquidity. In August 2016, the company successfully opened the $1.2bn major stage of Westfield World Trade Centre ahead of its target yield. It expects to achieve FFO for the 2017 year of between 33.8 and 34.0c per security, representing pro-forma growth of between 3% and 3.5% from 2016. WFD lost 11 cents to $8.90.

Annual General Meetings today (ASX 300)

  • Graincorp Limited

Companies trading ex-dividend today (ASX 300)

  • Amcor Limited
  • Computershare Limited
  • Evolution Mining Limited
  • Ingenia Communities Group
  • iSelect Limited

Companies trading ex-dividend next business day (ASX 300)

  • Aurizon Holdings Limited
  • Coca-Cola Amatil Limited
  • Orora Limited

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