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Overseas Market Report

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Overseas Market Report - International Markets Roundup

Thursday 19 April 2018 | Close

NEW YORK [Morningstar with AAP]: Wall Street's three major indexes closed lower on Thursday, with tobacco stocks leading a tumble in consumer staples while concerns about smartphone demand hurt the technology sector.

Thursday 19 April 2018 | Close

Foreign Equities Close Change %Change
Dow Jones (US) 24665 -83 -0.34
S&P 500 2693 -16 -0.57
NASDAQ 7238 -57 -0.78
FTSE 100 Index 7329 12 0.16
DAX 30 12567 -23 -0.19
CAC 40 5392 11 0.21
Nikkei 225 (Japan) 22191 33 0.15
HKSE 30708 424 1.40
SSE Composite Index 3117 26 0.84
NZ 50 8373 4 0.04

Thursday 19 April 2018 | Close

Commodities US$ Close Change %Change
Aluminium /t 2495 -46 -1.81
Copper /t 6942 -39 -0.56
Nickel /t 15021 -203 -1.34
Gold /oz 1345 -3 -0.19
Silver /oz 17.2 0.1 0.53
Oil - West Texas crude /bbl 68.3 -0.1 -0.20
Lead /t 2330 -43 -1.83
Zinc /t 3209 -39 -1.22

Thursday 19 April 2018 | Close

Currency Close Pts Change % Change
$A vs $US 0.7727 -0.0061 -0.78
$A vs GBP 0.5486 0.0004 0.07
$A vs YEN 83.00 -0.57 -0.68
$A vs EUR 0.6259 -0.0032 -0.50
$A vs $NZ 1.0629 -0.0003 -0.03
$US vs Euro 0.8100 0.0023 0.28
$US vs UK 0.7101 0.0061 0.86
$US vs CHF 0.9713 0.0030 0.31

NEW YORK [Morningstar with AAP]: Wall Street's three major indexes closed lower on Thursday, with tobacco stocks leading a tumble in consumer staples while concerns about smartphone demand hurt the technology sector.

Cigarette giant Philip Morris International Inc was the second biggest weight on the S&P after weaker-than-expected results, also pulling down US tobacco company Altria.

A warning from Taiwan Semiconductor (TSMC), the world's largest contract chipmaker and an Apple Inc supplier, on soft demand for smartphones and on the industry's growth this year sparked a tumble in chip stocks and made Apple the S&P's second biggest weight.

Along with weak results from Philip Morris and Procter & Gamble Co, defensive sectors such as consumer staples were also hurt by a rise in US 10-year Treasury yields, which helped bank stocks.

"It's pretty much dictated by the move in the bond market," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco.

When yields are high, investors favour bonds over defensive sectors such as consumer staples and real estate, which promise high dividends and slow, predictable growth. But banks benefit because high interest rates can boost their profits.

The Dow Jones Industrial Average closed 83.18 points, or 0.34 per cent lower, at 24,664.89, the S&P 500 lost 15.51 points, or 0.57 per cent, to 2,693.13 and the Nasdaq Composite dropped 57.18 points, or 0.78 per cent, to 7,238.06.

LONDON: The UK's top share index rose on Thursday as surging crude oil prices boosted commodity stocks and Shire's shares jumped as bid talk heated up.

The FTSE 100 ended the session 0.2 per cent higher at 7,328.92 points, its highest since early February. The mid-cap index also gained, up 0.7 per cent.

In other European markets, Germany was down 0.19 per cent, and France was up 0.21 per cent.

Shares in Shire soared nearly six per cent to the top of the index after Botox maker Allergan said that it was in the early stages of considering a possible offer for the British rare diseases specialist.

Shire also rejected a third takeover bid worth nearly $US63 billion ($A81.5 billion) from Japan's Takeda Pharmaceutical.

More broadly, the energy sector contributed most to the FTSE's gains with oil majors Royal Dutch Shell and BP both up around 1.5 per cent as oil prices hit their highest in over three years after a report that top exporter Saudi Arabia was pushing for higher prices.

TOKYO: Resource stocks rallied in Asia on Thursday as oil prices hit heights not seen since late 2014 and ignited a rally across commodities, though the potential boost to inflation globally also put some pressure on fixed-income assets.

The surge came on a Reuters report that OPEC's new price hawk Saudi Arabia would be happy for crude to rise to $US80 or even $US100, a sign Riyadh will seek no changes to a supply-cutting deal even though the agreement's original target is within sight.

"The Saudis and their colleagues in OPEC need higher oil (prices) for their fiscal positions and the Kingdom is on a bold - and costly - reform program," said Greg McKenna, chief market strategist at CFD and FX provider AxiTrader.

Resource stocks were the big winners, driving Chinese blue chips up 1.1 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.9 per cent, with energy up over 2.6 per cent.

Japan's Nikkei faded late in the day to end up 0.15 per cent, and Hong Kong's Hang Seng index rose 1.4 per cent.

WELLINGTON: On Thursday, New Zealand's S&P/NZX 50 index rose 0.04 per cent, to 8,373.03.

Australian Market

Local Markets Are Expected to Open Lower

Ahead of the local open SPI futures were 10 points lower at 5,844.

Thursday 19 April - close [Morningstar with AAP]: The Australian share market has closed higher for a fifth straight session, led by the mining and energy sectors, after commodity prices jumped on hopes of stronger economic activity in China, and low US oil stocks.

The benchmark S&P/ASX200 index was up 19.6 points, or 0.33 per cent at 5,881 points at 1630 AEST, while the broader All Ordinaries was up 20 points, or 0.34 per cent, at 5,976.3 points.

Phillip Capital senior client adviser Michael Heffernan said the market ran out of puff following a strong start to the session, but was supported by strength in the mining and energy sectors.

"Aluminium, iron ore and oil prices are propelling the major resources stocks," he said.

That also helped the Australian dollar rise against the US dollar, despite a temporary fall after the release of weaker than expected March jobs figures.

The unemployment rate was steady at 5.5 per cent, but the addition of 4,900 jobs in March was far below expectations of 20,000.

The Aussie was worth 77.98 US cents at 1630 AEST, up from 77.59 US cents on Wednesday.

Mr Heffernan said equity markets had also drawn some comfort from the International Monetary Fund's latest World Economic Outlook, which said the global economy is enjoying its strongest performance since the start of the decade.

The mining sector was the standout performer, with BHP Billiton up 2.8 per cent to $30.92, despite trimming its full-year iron ore production guidance, Rio Tinto gained 3.1 per cent to $81.42, Fortescue Metals added 3.5 per cent to $4.71 and South32 was 4.6 per cent higher at $3.88.

Energy stocks strengthened after oil futures jumped nearly three per cent on a report that showed lower-than-expected US crude stocks, and Saudi Arabia signalled that it would prefer the oil price to be closer to $US100 a barrel.

Woodside Petroleum added 1.1 per cent to $31.06, Oil Search lifted 0.9 per cent to $7.77, and Santos gained 0.3 per cent to $6.00 despite lowering its full-year production and sales guidance due to the shutdown caused by February's earthquake in Papua New Guinea.

AMP posted its fifth straight fall, dropping 2.9 per cent to $4.32, its lowest level since early 2014.

National Australia Bank dipped 0.4 per cent to $28.33, Westpac also shed 0.4 per cent to $28.59, Commonwealth Bank dropped one cent to $72.40 and ANZ gained 0.3 per cent to $26.71.

Pharmacies operator and health and beauty products retailer Australian Pharmaceutical Industries backtracked 2.3 per cent to $1.47 after its half-year profit fell by 14 per cent.

ON THE ASX AT 1630 AEST:

The benchmark S&P/ASX200 was up 19.6 points, or 0.33 per cent, at 5,881 points

The broader All Ordinaries index was up 20 points, or 0.34 per cent, at 5,976.3 points

National turnover was 4 billion securities traded worth $6.7 billion.

Annual General Meetings today (ASX 300)

  • APN Outdoor Group Limited

Companies trading ex-dividend today (ASX 300)

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

  • Ridley Corporation Limited

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