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Overseas Market Report - International Markets Roundup

Tuesday 18 December 2018 | Close

[Morningstar with AAP]: Chinese President Xi Jinping offered no fresh policies to stimulate the world's second-biggest economy in a keynote speech to mark the 40th anniversary of Deng Xiaoping's "Reform and Opening Up".

Tuesday 18 December 2018 | Close

Foreign Equities Close Change %Change
Dow Jones (US) 23676 83 0.35
S&P 500 2546 0 0.01
NASDAQ 6784 30 0.45
FTSE 100 Index 6702 -72 -1.06
DAX 30 10741 -31 -0.29
CAC 40 4754 -46 -0.95
Nikkei 225 (Japan) 21115 -391 -1.82
HKSE 25814 -274 -1.05
SSE Composite Index 2577 -21 -0.82
NZ 50 8688 -57 -0.65

Tuesday 18 December 2018 | Close

Commodities US$ Close Change %Change
Aluminium /t 1921 -22 -1.16
Copper /t 5945 -151 -2.47
Nickel /t 10753 -155 -1.42
Gold /oz 1249 3 0.22
Silver /oz 14.6 -- --
Oil - West Texas crude /bbl 46.6 -3.6 -7.17
Lead /t 1966 42 2.18
Zinc /t 2579 -10 -0.41

Tuesday 18 December 2018 | Close

Currency Close Pts Change % Change
$A vs $US 0.7176 0.0004 0.05
$A vs GBP 0.5675 -0.0009 -0.16
$A vs YEN 80.72 -0.21 -0.26
$A vs EUR 0.6314 -0.0006 -0.09
$A vs $NZ 1.0478 -0.0053 -0.50
$US vs Euro 0.8799 -0.0011 -0.12
$US vs UK 0.7910 -0.0016 -0.20
$US vs CHF 0.9923 -0.0002 -0.02

[Morningstar with AAP]: Chinese President Xi Jinping offered no fresh policies to stimulate the world's second-biggest economy in a keynote speech to mark the 40th anniversary of Deng Xiaoping's "Reform and Opening Up".

Asia

Chinese President Xi Jinping offered no fresh policies to stimulate the world's second-biggest economy in a keynote speech to mark the 40th anniversary of Deng Xiaoping's "Reform and Opening Up".

Xi told a Beijing crowd including some of China's most influential political, military and business figures the country's growing wealth and power had validated the Communist Party's leadership.

"No one is in the position to dictate to the Chinese people what should and should not be done," Xi said.

Hong Kong stocks fell amid the anti-climactic policy speech and depressed share prices across the region.

The Hang Seng index fell 1.1 per cent to 25,814.25, while the Hang Seng China Enterprises index lost 1.2 per cent.

The sub-index of the Hang Seng tracking energy shares fell 2.3 per cent, the IT sector lost 2.4 per cent, while the more defensive financial sector edged down 0.7 per cent and the property sector shed close to 1 per cent.

MSCI's Asia ex-Japan stock index was down 0.7 per cent, while Japan's Nikkei index fell 1.8 per cent.

Europe

In Europe, the pan-continental Stoxx Europe 600 index was 0.8 per cent lower, weighed down by a fall in its oil-and-gas sector.

Germany's DAX rose 0.3 per cent, while France's CAC 40 lost 0.4 per cent and the FTSE 100 in London fell 0.6 per cent.

The benchmark FTSE 100 Index this month erased its 21st-century advance as the global equities sell-off was compounded by concerns that Prime Minister Theresa May will struggle to get her Brexit deal through parliament.

The gauge is down 12 per cent this year, set for the worst annual decline since 2008.

Meanwhile, Germany's 10-year yield dipped one basis point to 0.24 per cent. Britain's 10-year yield rose two basis points to 1.28 per cent.

North America

The benchmark S&P 500 stock index has ended little changed in a choppy trading session on Tuesday as the possibility of a partial US government shutdown raised investor jitters ahead of a highly anticipated meeting of the Federal Reserve.

The Dow Industrials and the Nasdaq posted slight gains, however, as shares of Boeing Co and the group of internet-focused momentum stocks known as FAANG rose.

The S&P 500 had risen as much as 1.1 per cent earlier in the session but gave up most of its gains after US Senate Majority Leader Mitch McConnell said Democrats had rejected his spending bill proposal. Without the passage of a spending bill, several government agencies are at risk of a shutdown.

The benchmark index briefly turned negative in intraday trading to fall below Monday's levels. On Monday, the S&P 500 ended at a 14-month low.

S&P 500 energy stocks led the declines, falling 2.4 per cent. US crude prices tumbled more than 7 per cent on concerns of oversupply.

In addition to the looming government shutdown threat, investors prepared for the outcome of the two-day meeting of the Federal Open Market Committee, which began on Tuesday.

Market participants widely expect the Fed to raise benchmark US rates this month, but some investors anticipate that the US central bank will indicate fewer rate hikes for 2019 than previously expected.

Traders in the options market continued to expect increased stock market volatility in coming days. The Cboe Volatility Index, the most widely followed gauge of expected near-term gyrations for the S&P 500, finished up 1.06 points at 25.58, its highest close in 10 months.

Yet shares of Boeing Co rose 3.8 per cent after three days of losses as the aerospace company said it was raising its dividend and increasing share buybacks to $US20 billion ($28 billion) from $US18 billion ($25 billion).

Shares of Facebook, Apple, Amazon.com, Netflix and Google parent Alphabet, collectively known as FAANG, gained between 1.3 per cent and 3.1 per cent.

Goldman Sachs Group Inc shares rose 2.1 per cent to snap a nine-day losing streak related to the 1MDB scandal.

Johnson & Johnson shares rose 1.0 per cent after a nearly 13 per cent drop over two days on a Reuters report that the company knew for decades that its Baby Powder contained asbestos.

Australian Market

Local Markets Are Expected To Open Flat

Ahead of the local open SPI futures were flat at 5,580.

Tuesday 18 December - close [Morningstar with AAP]: Losses across the board dragged the Australian share market lower, with energy stocks weighing the heaviest amid looming interest rate hikes in the US and tumbling oil prices.

The benchmark S&P/ASX200 index was down 68.8 points, or 1.22 per cent, at 5589.5 at 1615 AEDT on Tuesday, while the broader All Ordinaries lost 1.24 per cent at 5661.80.

The US Federal Reserve is expected to raise interest rates this week and CommSec market analyst James Tao said investors will be keenly listening to Fed chair Jerome Powell for any indication for how many hikes are in-store for 2019.

"That will certainly impact on the potential growth story that has been weighing on global markets now for a while," he told AAP.

Buyers are also nervously keeping an eye on the Congress, with President Donald Trump threatening a partial shutdown of the government if funding for the proposed US-Mexico border wall is not approved.

Energy stocks lost nearly three per cent after oil prices fell on US supply concerns and fears over global economic growth.

Caltex recorded the heaviest loss among the major players, down 5.5 per cent to $25.57, after its Lytton refinery performance weighed heavily on its earnings outlook.

Meanwhile, Origin, Woodside, Oil Search, and Santos were down between 1.3 and 2.6 per cent.

ANZ suffered the heaviest losses of the big four lenders, down three per cent to $23.69, NAB and Westpac were 1.8 and 1.4 per cent lower respectively, while Commonwealth Bank lost one per cent to $68.60.

Macquarie Group fell 2.3 per cent to $110.

The gold miners provided rare lustre to the benchmark as the precious metal firmed more than $7 an ounce overnight against a softer US dollar, and limited the sector's losses to 0.2 per cent.

Northern Star was up 3.3 per cent to $8.56 and Newcrest climbed 1.5 per cent to $21.16.

Major miner BHP was flat at $33.50, while Bluescope fell 4.9 per cent.

Telecommunications was the only sector on the market consistently in the black through the day but Telstra pared its gains to 0.3 per cent and the index fell slightly into negative.

REA Group lost nearly two per cent after it appointed the former head of ANZ's Asian retail banking business as its new chief executive.

Auto classified site Carsales.com dropped two per cent to $11.52 following the announcement of a likely $48 million impairment on its share in Stratton Finance.

The Australian dollar strengthened against its US counterpart awaiting news from the US Federal Reserve.

The Aussie was buying 71.90 US cents at 1630 AEDT from 71.73 on Monday.

ON THE ASX:

The benchmark S&P/ASX200 index was down 68.8 points, or 1.22 per cent, at 5589.5

The All Ordinaries was down 71.1 points, or 1.24 per cent, at 5661.8

Annual General Meetings today (ASX 300)

  • Australia & New Zealand Banking Group Ltd
  • National Australia Bank Limited
  • Orica 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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