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Overseas Market Report

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Overseas Market Report - International Markets Roundup

Friday 19 October 2018 | Close

NEW YORK [Morningstar with AAP]: The US benchmark S&P 500 stock index has closed a touch lower as strong earnings from Procter & Gamble Co were offset by ongoing concerns about rising interest rates and tensions over trade policy denting economic growth.

Friday 19 October 2018 | Close

Foreign Equities Close Change %Change
Dow Jones (US) 25444 65 0.26
S&P 500 2768 -1 -0.04
NASDAQ 7449 -36 -0.48
FTSE 100 Index 7050 23 0.32
DAX 30 11554 -35 -0.31
CAC 40 5085 -32 -0.63
Nikkei 225 (Japan) 22532 -126 -0.56
HKSE 25561 107 0.42
SSE Composite Index 2550 64 2.58
NZ 50 8802 -108 -1.22

Friday 19 October 2018 | Close

Commodities US$ Close Change %Change
Aluminium /t 1996 -12 -0.60
Copper /t 6228 71 1.14
Nickel /t 12372 96 0.78
Gold /oz 1226 -3 -0.20
Silver /oz 14.6 0.1 0.41
Oil - West Texas crude /bbl 69.3 0.6 0.92
Lead /t 1975 -6 -0.30
Zinc /t 2677 -55 -2.01

Friday 19 October 2018 | Close

Currency Close Pts Change % Change
$A vs $US 0.7120 0.0003 0.04
$A vs GBP 0.5446 -- --
$A vs YEN 80.14 0.04 0.05
$A vs EUR 0.6182 0.0009 0.14
$A vs $NZ 1.0769 -0.0020 -0.18
$US vs Euro 0.8682 0.0011 0.13
$US vs UK 0.7648 0.0001 0.02
$US vs CHF 0.9958 0.0004 0.04

NEW YORK [Morningstar with AAP]: The US benchmark S&P 500 stock index has closed a touch lower as strong earnings from Procter & Gamble Co were offset by ongoing concerns about rising interest rates and tensions over trade policy denting economic growth.

Shares of Procter & Gamble jumped 8.8 per cent after the consumer goods company reported a surprise rise in first-quarter sales. The climb in Procter & Gamble shares lifted the Dow and helped advance the S&P 500 consumer staples index 2.3 per cent.

The consumer staples sector, which has underperformed the broader S&P 500 this year, was set for its biggest daily percentage gain since August 2015.

Yet recent jitters regarding global trade tensions and rising interest rates, which have weighed US stocks this week, persisted.

The S&P 500 index closed below its 200-day moving average, a key statistical indicator of long-term price trends. Defensive sectors - utilities and real estate in addition to consumer staples - led the S&P in percentage gains, signaling caution among investors.

Trade policy worries weighed on shares of Honeywell International Inc, which erased early gains to end 1.1 per cent lower after the industrial conglomerate said it was seeing slower growth in China and that tariffs would potentially cost it "hundreds of millions" of dollars in 2019.

US home sales fell in September by the most in over two years as the housing market continued to struggle despite strength across the broader economy. Home sales have now fallen for six straight months, and rising mortgage rates are expected to slow demand.

"There are still concerns you can see in the market regarding whether or not higher interest rates are going to weaken growth," said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.

As a result, Krosby said, investors will be looking specifically for strong sales, not just profits, as the earnings season progresses.

So far, 61.9 per cent of S&P 500 companies have reported revenue above analyst expectations, below the 73 per cent average over the past four quarters, according to I/B/E/S data from Refinitiv.

"What we need to see to get investors back into the market is stronger revenue growth," she said.

The Dow Jones Industrial Average rose 64.89 points, or 0.26 per cent, to 25,444.34, the S&P 500 lost one point, or 0.04 per cent, to 2,767.78 and the Nasdaq Composite dropped 36.11 points, or 0.48 per cent, to 7,449.03.

Australian Market

Local Markets Are Expected to Open Lower

Ahead of the local open SPI futures were 12 point lower at 5,911.

Friday 19 October - close [Morningstar with AAP]: The Australian share market closed flat, with banking stocks clawing back from a weak start after heavy overnight losses on Wall Street.

The benchmark S&P/ASX200 index was down 2.9 points, or 0.05 per cent, at 5939.5 points on Friday while the broader All Ordinaries lost 7.3 points or 0.12 per cent at 6042.80.

China's economy grew 6.5 per cent in the third quarter, a tick short of forecasts and the slowest pace since the global financial crisis.

But Pepperstone head of research Chris Weston said positive commentary from various high-ranking officials in Beijing helped kickstart the local market.

"The pace of growth (in China) is still fairly good," he said.

"Money creation and supply has ticked up a little bit and what we need is a circuit breaker and it does seem we're getting more supportive rhetoric that they are going to defend asset prices."

The financial sector closed higher for the fourth straight session.

National Australia Bank was the only of the major lenders to finish lower after its chief executive Andrew Thorburn appeared at the House economics committee.

It was down 0.3 per cent to $25.67, while Commonwealth Bank had the strongest gains of the big four, up one per cent to $67.92.

The heavyweight materials sector - which has proved a consistent drag for almost two weeks - was lower following an overnight dip for several industrial metals.

Sector giants BHP and Rio Tinto were down 0.3 and 1.7 per cent respectively, and Fortescue Metals and South32 were both more than two per cent lower.

Gold stocks, however, gained on the back of a jump in the safe-haven precious metal, with St Barbara, Northern Star, Regis Resources and Saracen Mineral all closing between 4.3 and 5.3 per cent higher.

Buy-now pay-later fintech Afterpay continued its choppy week, reacting to concerns of an inquiry and negative global sentiment.

It was down 3.5 per cent to $12.50, dragging the infotech sector down 1.1 per cent.

The Australian dollar was cautious after Beijing offset a mixed bag of Chinese data by pledging more support for the economy, though risk sentiment remained all-too fragile after a rough week.

The Aussie was buying 71.09 US cents at 1630 AEDT, from 71.24 US cents on Thursday.

ON THE ASX:

The S&P/ASX200 was down 2.9 points, or 0.05 per cent, at 5939.5 points

The All Ordinaries was down 7.4 points, or 0.12 per cent, at 6042.7

Annual General Meetings today (ASX 300)

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