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Overseas Market Report - International Markets Roundup

Thursday 28 May 2020 | Close

[Morningstar with AAP]: Wall Street ended lower on Thursday following a late-session reversal, with Facebook weighing on the market after President Donald Trump said he would sign an executive order related to social media companies and would hold a news conference on China on Friday.

Thursday 28 May 2020 | Close

Foreign Equities Close Change %Change
Dow Jones (US) 25401 -148 -0.58
S&P 500 3030 -6 -0.21
NASDAQ 9369 -43 -0.46
FTSE 100 Index 6219 75 1.21
DAX 30 11781 123 1.06
CAC 40 4771 83 1.76
Nikkei 225 (Japan) 21916 497 2.32
HKSE 23133 -169 -0.72
SSE Composite Index 2846 9 0.33
NZ 50 10913 56 0.52

Thursday 28 May 2020 | Close

Commodities US$ Close Change %Change
Aluminium /t 1514 14 0.93
Copper /t 5306 79 1.51
Nickel /t 12179 133 1.10
Gold /oz 1719 -3 -0.19
Silver /oz 17.4 0.2 1.03
Oil - West Texas crude /bbl 33.7 0.9 2.74
Lead /t 1614 -7 -0.46
Zinc /t 1940 21 1.07

Thursday 28 May 2020 | Close

Currency Close Pts Change % Change
$A vs $US 0.6627 0.0008 0.11
$A vs GBP 0.5379 -0.0019 -0.34
$A vs YEN 71.35 -0.01 -0.01
$A vs EUR 0.5983 -0.0024 -0.41
$A vs $NZ 1.0686 -0.0013 -0.12
$US vs Euro 0.9028 -0.0049 -0.54
$US vs UK 0.8115 -0.0037 -0.46
$US vs CHF 0.9641 -0.0038 -0.39

[Morningstar with AAP]: Wall Street ended lower on Thursday following a late-session reversal, with Facebook weighing on the market after President Donald Trump said he would sign an executive order related to social media companies and would hold a news conference on China on Friday.


China stocks closed higher for a second straight session on Tuesday, as a top regulatory official downplayed the impact of the trade war with the US, and as foreign investors bought shares ahead of an increase in MSCI's weighting.

The blue-chip CSI300 index rose 1.0 per cent, to 3,672.26, while the Shanghai Composite Index closed up 0.6 per cent at 2,909.91.

In Hong Kong, the Hang Seng index closed down 0.7 per cent at 23,132.76, after falling more than 2 per cent mid-session to its lowest level since 25 May. The Hang Seng China Enterprises index fell 0.2 per cent.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.16 per cent , while Japan's Nikkei index closed up 0.37 per cent.


European shares rose for a fourth straight session on Thursday, as optimism over businesses returning to work and stimulus for the battered euro zone economy outweighed rising US-China tensions.

The pan-European STOXX 600 index rose 1.6 per cent to hit an 11-week high, with healthcare stocks rebounding from losses earlier this week.

GlaxoSmithKline, the world's largest vaccine maker, gained 2.1 per cent as it laid out plans to produce 1 billion doses of vaccine efficacy boosters for COVID-19 shots next year.

Other defensive sectors such as personal & household goods, telecoms and utilities also rose.

UK cinema operator Cineworld surged 21.4 per cent to the top of the STOXX 600 after saying it expected to reopen all its venues in July and had secured additional liquidity.

The STOXX 600 has risen more than 32 per cent from its March lows as investors hope for a gradual recovery with policymakers injecting trillions of dollars into the global economy and drugmakers racing to develop a COVID-19 vaccine.

The mood in Europe has brightened this week on a 750-billion-euro ($1.13 billion) EU plan to prop up the bloc's virus-hit economies, while hopes are running high the European Central Bank will further expand its bond purchase programme next week, possibly by 500 billion euros.

Investors looked past a fresh escalation in Sino-US tensions after China's parliament approved a decision to move forward with national security legislation for Hong Kong.

US President Donald Trump has promised to take action over the move by the end of the week.

Italian luxury group Salvatore Ferragamo surged 16 per cent after it called back its former chief executive officer to help weather the COVID-19 storm.

And Scandinavian airline SAS slumped 11.2 per cent after revealing it was in talks with shareholders to raise funds as the collapse in travel demand hurt its quarterly results.

North America

Wall Street ended lower on Thursday following a late-session reversal, with Facebook weighing on the market after President Donald Trump said he would sign an executive order related to social media companies and would hold a news conference on China on Friday.

Shares of Twitter ended down 4.4 per cent and Facebook fell 1.6 per cent following news of the executive order. The White House, after the market close, said Trump had signed the order, which removes a liability shield they currently enjoy.

Trump said he was directing Attorney General William Barr to work with states to enforce their own laws against what he described as deceptive business practices by social media companies.

Concerns about China-US relations may also have driven the late decline. White House economic adviser Larry Kudlow told CNBC on Thursday that Hong Kong may now be needed to be treated like China when it comes to trade and other matters, echoing remarks by Secretary of State Mike Pompeo on Wednesday.

Stocks had been higher for most of the session as investors continued to bet on a swift recovery from the coronavirus-driven economic slump.

Worsening ties in recent weeks between the US and China, the world's two largest economies, could pose a threat to the stock market's strong recovery from its steep selloff.

The Dow Jones Industrial Average fell 147.63 points, or 0.58 per cent, to 25,400.64, the S&P 500 lost 6.4 points, or 0.21 per cenr, to 3,029.73 and the Nasdaq Composite dropped 43.37 points, or 0.46 per cent, to 9,368.99.

The S&P 500 is still up sharply from the low hit in March as a restart in business activity after weeks of shutdown and massive amounts of stimulus measures to support the economy have driven hopes of a strong recovery.

Boeing Co said it had resumed production of its 737 MAX passenger jet at its Washington state plant, although at a 'low rate.'

Australian Market

Local Markets Are Expected To Open Lower

Ahead of the local open SPI futures were 20 points lower at 5836.

Thursday 28 May 2020 - close [Morningstar with AAP]: The local bourse has rallied for a third time in the past four days as a buying spree on bank stocks continued amid hopes for a V-shaped recovery.

The S&P/ASX200 benchmark index moderated its gains after being up as much as 2.5 per cent around midday to finish Thursday ahead by 76.1 points, or 1.32 per cent, at 5,851.1 points, while the All Ordinaries index rose by 72.9 points, or 1.24 per cent, to 5,957.8.

"It was another record-breaking day," said Bell Direct market analyst Jessica Amir, noting the rally pushed the ASX200 to a fresh 11-week high.

The index is up 6.4 per cent for the week, putting it on track to eclipse its 6.3 per cent gain the week before Easter for its best weekly performance since December 2011.

"It looks like all the right signals to continue," Ms Amir said. "These patterns and these trends are what breaks us out of a bear market. It looks like we could probably sustain things, but there are a lot of risks.

"This is unprecedented. A lot of people are saying, 'Hey, too early, too soon'.'"

The financial sector was again the biggest gainer on Thursday, rising 3.1 per cent following a UBS report this week flagged a catch-up rally on bank stocks.

Market sentiment was also helped by Reserve Bank governor Philip Lowe, who told a Senate inquiry on Thursday that the economic downturn from coronavirus may not be as severe as predicted.

Australia's recovery largely depended on when the public regains its confidence in its health and finances, Mr Lowe said.

ANZ lifted 4.5 per cent to $18.74, NAB gained 4.7 per cent to $18.79, Westpac rose 4.4 per cent to $18.39 and Commonwealth Bank rose 2.2 per cent to $65.73.

Also, Virgin Money UK rose 10.1 per cent to $2.01, Bank of Queensland gained 2.0 per cent to $5.54 and Bendigo and Adelaide rose 4.1 per cent to $6.55 despite the regional lender saying it had made an extra provision of $148.3 million for potential impacts of the COVID-19 pandemic on its customers.

Blood products giant CSL dropped 0.2 per cent to $287.51 and is down 7.1 per cent on the month.

"I guess if you're looking for an entry to the biggest company on the ASX, you'd look at it now," Ms Amir said of CSL.

The mining sector gained 1.7 per cent as BHP rose 2.0 per cent to $35.16, Rio Tinto gained 2.3 per cent to $93.63 and Fortescue Metals added 3.4 per cent to $13.52.

Goldminers were up, with Evolution gaining 4.3 per cent, Newcrest rising 0.8 per cent and Northern Star adding 2.2 per cent.

Tech stocks were flat overall, with aerial mapping company Nearmap rising 16.7 per cent to $2.24 after announcing its annualised contract value had risen to $102 million while WiseTech Global dropped 5.8 per cent to $21.06 after renegotiating earnout arrangements on 17 of its strategic acquisitions.

Energy and property trusts were the only two sectors to fall, dropping by 1.1 and 0.9 per cent, respectively.

Santos dropped 3.2 per cent to $5.44 despite completing its acquisition of ConocoPhillips' northern Australian and Timor-Leste assets for a reduced price of $US1.3 billion ($A2 billion).

One Australian dollar was buying 66.28 US cents, down from 66.44 US cents at the close of trade on Wednesday.


* The benchmark S&P/ASX200 index closed Thursday up 76.1 points, or 1.32 per cent, at 5,851.1 points

* The All Ordinaries also closed up 72.9 points, or 1.24 per cent, at 5,957.8 points

* At 1724 AEST, the SPI200 futures index was down seven points, or 0.1 per cent, at 5,850 points

The NZX 50 added 56.42 points (0.52%) to 10913.11

Annual General Meetings today (ASX 300)

  • Costa Group Holdings Limited
  • Nickel Mines Limited

Companies trading ex-dividend today (ASX 300)

  • No Companies trading ex-dividend today (ASX 300)

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

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

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