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Overseas Market Report

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Overseas Market Report - International Markets Roundup

Thursday 05 December 2019 | Close

[Morningstar with AAP]: US President Trump again reiterated on Thursday that talks with China were "going well" and he said something could happen regarding tariffs on 15 December, "but were not discussing that."

Thursday 05 December 2019 | Close

Foreign Equities Close Change %Change
Dow Jones (US) 27678 28 0.10
S&P 500 3117 5 0.15
NASDAQ 8571 4 0.05
FTSE 100 Index 7138 -51 -0.70
DAX 30 13055 -86 -0.65
CAC 40 5802 2 0.03
Nikkei 225 (Japan) 23300 165 0.71
HKSE 26217 154 0.59
SSE Composite Index 2899 21 0.74
NZ 50 11271 13 0.12

Thursday 05 December 2019 | Close

Commodities US$ Close Change %Change
Aluminium /t 1752 -15 -0.88
Copper /t 5859 2 0.03
Nickel /t 13249 174 1.33
Gold /oz 1476 -1 -0.07
Silver /oz 16.9 0.1 0.68
Oil - West Texas crude /bbl 58.4 -- --
Lead /t 1890 -16 -0.85
Zinc /t 2239 -20 -0.87

Thursday 05 December 2019 | Close

Currency Close Pts Change % Change
$A vs $US 0.6831 -0.0012 -0.17
$A vs GBP 0.5189 -0.0033 -0.64
$A vs YEN 74.29 -0.23 -0.31
$A vs EUR 0.6151 -0.0028 -0.45
$A vs $NZ 1.0428 -0.0010 -0.10
$US vs Euro 0.9005 -0.0017 -0.19
$US vs UK 0.7599 -0.0027 -0.35
$US vs CHF 0.9870 -0.0009 -0.10

[Morningstar with AAP]: US President Trump again reiterated on Thursday that talks with China were "going well" and he said something could happen regarding tariffs on 15 December, "but were not discussing that."

Asia

Chinese shares rose on Thursday, lifted by renewed hopes that China and the United States may be closer to a 'phase one' trade deal to end the 17-month-long bitter tariff war - but conflicting messages from Trump continue to sow confusion.

At the close, the Shanghai Composite index was up 0.74 per cent at 2,899.47. It has gained 1.48 per cent since hitting more than three-month lows on Tuesday.

The blue-chip CSI300 index was up 0.77 per cent, with its financial sector sub-index higher by 0.74 per cent, the consumer staples sector up 0.24 per cent, the real estate index down 0.11 per cent and the healthcare sub-index up 0.96 per cent.

"My base case scenario is the two sides [China and US] reach some deal. The pressure for a deal is immense simply because of the economic slowdown in both countries," Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors, said yesterday.

"However, we see increased volatility because policy uncertainty has become a constant."

The smaller Shenzhen index ended up 1.15 per cent and the start-up board ChiNext Composite index gained 2.154 per cent.

Signs of hope on US-China trade saw Hong Kong stocks rise on Thursday, despite the tempering effect of Trump's remarks.

The Hang Seng index closed up 0.6 per cent at 26,217.04 points, while the Hang Seng China Enterprises index gained 0.7 per cent.

The sub-index of the Hang Seng tracking energy shares gained 0.7 per cent, the IT sector climbed 0.8 per cent, the financial sector ended 0.3 per cent higher and the property sector was up 0.8 per cent.

In Japan, the Nikkei share average bounced back on Thursday, with steelmakers leading the gains.

The Nikkei 225 index rose 0.71 per cent to 23,300.09, back above the 25-day moving average of 23,275, a key technical level.

The broader Topix gained 0.48 per cent to 1,711.41, just shy of the 13-1/2-month high of 1,719.57 hit late last month.

South Korea's Seoul stock market's main KOSPI ended down 8.15 points, or 0.39 per cent, at 2,060.74, marking its third straight session of declines.\

Across the region, MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.5 per cent.

Europe

European shares to follow with a slightly firmer open, with the pan-regional Euro Stoxx 50 futures and London's FTSE futures rising 0.1 per cent in early trade.

The pan-European STOXX 600 index closed down 0.13 per cent, while the STOXX 50E benchmark was up 0.2 per cent on Thursday.

The blue-chip FTSE 100 index was down 0.1 per cent, while the more domestically focused mid-cap index, the FTSE 250, was flat.

The best performer among blue chips was Burberry. Like much of the European luxury sector, Burberry was boosted by a report that French group Kering had expressed interest in a potential takeover of Italy's Moncler.

Burberry was up 3.5 per cent while European peers Moncler, LVMH, Kering and Hugo Boss also gained, with Moncler's 9.2 per cent jump leading the pack.

North America

US President Trump again reiterated on Thursday that talks with China were "going well" and he said something could happen regarding tariffs on 15 December, "but we're not discussing that."

Trump also said the United States may take action on trade with countries that are not contributing enough to the North Atlantic Treaty Organisation. US tariffs on about $156 billion of Chinese imports that are set to begin on 15 December, and Trump suggesting he would slap tariffs on French imports, have created uncertainty.

On Wall Street, the Dow Jones Industrial Average rose 26.74 points, or 0.1 per cent, to 27,676.52.

The S&P 500 gained 4.48 points, or 0.14 per cent, to 3,117.24 and the Nasdaq Composite added 2.88 points, or 0.03 per cent, to 8,569.55.

US economic reports countered data earlier this week that showed manufacturing activity contracted for a fourth straight month in November, a slowdown in growth in the services sector and a drop in construction spending in October.

Tech stocks led all three major US stock averages marginally into the black following upbeat statements from President Trump and Treasury Secretary Steven Mnuchin that the US-China trade negotiations are 'on track' and 'going well.'

Volatility returned to markets in recent days, amid conflicting reports on whether the world's two largest economies would be able to arrive at an agreement before mid- December.Materials stocks were the biggest winners, while energy suffered the largest percentage drop.

Economic data showed a shrinking trade deficit, a drop in jobless claims and a rebound in factory orders, suggesting a still-robust, if slowing, US economy.Investors now look to Friday's employment report from the US Labor Department, which is expected to show nonfarm payrolls increased by 180,000 in November.

Australian Market

Local Markets Are Expected To Open Higher

Ahead of the local open SPI futures were 8 points higher at 6687.

Thursday 5 December 2019 - close [Morningstar with AAP]: The Australian share market has rebounded following two days of steep losses, with every sector posting gains.

The benchmark S&P/ASX200 index finished Thursday up 76.5 points, or 1.16 per cent at 6,683.0, while the broader All Ordinaries closed up 76.7 points, or 1.14 per cent, to 6,791.1 points.

Fresh reports that a US-China trade deal was still possible by a December 15 deadline before the US raises tariffs on China helped sentiment, said CommSec market analyst James Tao.

IG market analyst Kyle Rodda noted the trading volumes were above average and the gains were broad-based.

"So, there's conviction behind today's move, even in light of what's still a pretty murky market environment," he said, while adding that the 76-point gains were not enough to even reclaim Wednesday's 106-point loss.

"But these things take time, and perhaps traders are just trying to work up their risk-appetite again, after having been ripped in the guts by the week's trade-war shenanigans."

The energy sector was the biggest gainer, up 1.6 per cent, as crude prices rose as much as four per cent overnight.

Beach Energy was up 3.9 per cent, Santos rose 4.2 per cent and Cooper Energy gained 3.8 per cent.

Caltex Australia was up 0.2 per cent to $34.38 after announcing a $500 million capital raising and the sale of an initial 25 petrol stations for $136 million as it contends with an unsolicited takeover offer.

But Whitehaven Coal weighed on the energy sector, dropping 10.3 per cent after announcing coal production would be down because of recent smoke, dust and haze events as well as difficulties finding skilled labour.

The big banks contributed 17.5 points to the rally, posting gains after the Reserve Bank of New Zealand's new capital requirements turned out to be not as onerous as first feared.

ANZ and NAB both gained 2.1 per cent, to $24.70, and $25.41, while Commonwealth Bank climbed 1.0 per cent to $78.62 and Westpac rose 1.2 per cent to $24.33.

Magellan Financial Group gained 3.6 per cent after announcing its funds under management grew by $410 million in November, to $97.7 billion.

Bellamy's shares rose 0.6 per cent to $13.22 after shareholders overwhelmingly approved its $1.5 billion takeover by China Mengniu Dairy Company.

Afterpay rose 2.3 per cent to $29.75 after announcing the buy now, pay later company had $1 billion in underlying sales in November, its best month ever.

In the heavyweight mining sector, BHP rose 1.6 per cent to $37.41 and Rio Tinto gained 0.8 per cent to $95.79, while Fortescue Metals climbed 2.3 per cent to $9.97.

Adriatic Metals soared 23.1 per cent to an all-time high of $1.625 after announcing drilling had found high-quality grades of precious metals at its Rupice project in Bosnia and Herzegovina.

Sports wagering company Pointsbet gained 4.2 per cent to $4.99, its highest level since debuting on the ASX in June following a $2-per-share initial public offering.

The Aussie dollar is buying 68.40 US cents, from 68.46 US cents on Wednesday.

ON THE ASX:

* The benchmark S&P/ASX200 index closed up 76.5 points, or 1.16 per cent, to 6,683.0 points.

* The All Ordinaries closed up 76.7 points, or 1.14 per cent, to 6,791.1 points.

* The SPI200 futures index closed up 68 points, or 1.03 per cent, to 6,679.

The NZX 50 added 14.56 points (0.13%) to 11272.35

Annual General Meetings today (ASX 300)

  • Altium Limited
  • Washington H. Soul Pattinson and Co. Limited

Companies trading ex-dividend today (ASX 300)

  • Fisher & Paykel Healthcare Corporation Limited

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

  • No Companies trading ex-dividend next business day (ASX 300)

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