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Overseas Market Report

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Overseas Market Report - International Markets Roundup

Tuesday 11 August 2020 | Close

[Morningstar with AAP]: The S&P 500 and the Dow had been higher for much of the session, and the S&P 500 came within striking distance of its closing record high from February, before the onset of the coronavirus crisis in the US that caused one of Wall Streets most dramatic crashes in history.

Tuesday 11 August 2020 | Close

Foreign Equities Close Change %Change
Dow Jones (US) 27687 -105 -0.38
S&P 500 3334 -27 -0.80
NASDAQ 10783 -186 -1.69
FTSE 100 Index 6154 104 1.71
DAX 30 12947 259 2.04
CAC 40 5028 118 2.41
Nikkei 225 (Japan) 22750 420 1.88
HKSE 24891 513 2.11
SSE Composite Index 3340 -39 -1.15
NZ 50 11395 -250 -2.15

Tuesday 11 August 2020 | Close

Commodities US$ Close Change %Change
Aluminium /t 1750 0 -0.01
Copper /t 6382 -12 -0.19
Nickel /t 14297 62 0.44
Gold /oz 1918 -32 -1.65
Silver /oz 25.5 -3.6 -12.41
Oil - West Texas crude /bbl 41.6 -0.3 -0.79
Lead /t 1942 62 3.29
Zinc /t 2394 11 0.46

Tuesday 11 August 2020 | Close

Currency Close Pts Change % Change
$A vs $US 0.7141 -0.0012 -0.16
$A vs GBP 0.5472 0.0001 0.03
$A vs YEN 76.08 0.25 0.32
$A vs EUR 0.6085 -0.0010 -0.17
$A vs $NZ 1.0875 0.0023 0.21
$US vs Euro 0.8518 -0.0002 -0.03
$US vs UK 0.7660 0.0014 0.19
$US vs CHF 0.9168 0.0014 0.15

[Morningstar with AAP]: The S&P 500 and the Dow had been higher for much of the session, and the S&P 500 came within striking distance of its closing record high from February, before the onset of the coronavirus crisis in the US that caused one of Wall Streets most dramatic crashes in history.

Asia

China stocks ended lower on Tuesday, dragged down by tech firms, as worries over rising Sino-US tensions weighed on investor sentiment.

At the close, the Shanghai Composite index was down 1.15 per cent at 3,340.29, while the blue-chip CSI300 index was down 0.91 per cent.

Hong Kong stocks ended higher on Tuesday, led by strong gains for consumer firms, as they were expected to be less impacted by the Sino-US tensions.

Snapping a three-day losing streak, the Hang Seng index rose 2.1 per cent to close at 24,890.68, while the China Enterprises Index gained 1.6 per cent, to 10,153.40.

Leading the gains, the Hang Seng consumer discretionary index ended 3 per cent higher at a near seven-month peak, with Chinese hot-pot restaurant chain operator Haidilao International Holding surging 13 per cent to a record peak.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.49 per cent, while Japan's Nikkei index closed up 1.88 per cent.

Europe

European stocks hit a near three-week high on Tuesday, as US stimulus bets and encouraging data out of China and Germany galvanised growth-linked cyclical sectors like travel and leisure, banking and automakers.

The pan-European STOXX 600 index closed 1.7 per cent higher, with Wall Street's S&P 500 coming in close quarters with an all-time high as investors hoped for more US fiscal stimulus.

Carmakers surged 4.4 per cent in Europe after data showed China's auto sales climbed 16.4 per cent in July, the fourth straight month of gains as the world's biggest vehicle market comes off lows hit during the coronavirus lockdown.

Other hard-hit sectors like travel & leisure, oil & gas and banks jumped between 3.7 per cent and 4.5 per cent.

Unprecedented monetary and fiscal stimulus, hopes of a covid-19 vaccine and Europe's relative success in limiting the spread of coronavirus have helped the STOXX 600 climb 38 per cent from its March lows, but remains about 15 per cent below its record highs.

A ZEW survey showed investor sentiment in Germany picked up more-than-expected in August, reflecting hopes that Europe's biggest economy is on the road to recovery.

The upbeat global mood helped investors look past data showing the number of people in work in Britain suffered the biggest drop since 2009 in the three months through June.

Holiday Inn-owner InterContinental Hotels gained 4.8 per cent as it saw some 'very early' signs of a recovery in demand, but its profit slumped 82 per cent in the first half of 2020.

German online fashion retailer Zalando rose 1.9 per cent after reporting a more than doubling of sales on its site.

Of the 240 companies in the STOXX 600 that have reported second-quarter earnings so far, 60.4 per cent topped analysts' estimates, according to Refinitiv Eikon data. In a typical quarter, half beat estimates.

Banco BPM surged 6.9 per cent on expectations that Italy's third-largest bank could become involved in a possible merger.

Defensive sectors like real estate, utilities, healthcare and food & beverage???considered more stable during an economic crisis???posted smaller gains.

North America

The S&P 500 and the Dow had been higher for much of the session, and the S&P 500 came within striking distance of its closing record high from February, before the onset of the coronavirus crisis in the US that caused one of Wall Street's most dramatic crashes in history.

The day's declines followed comments from US Senate Republican leader Mitch McConnell, who told Fox News that White House negotiators had not spoken on Tuesday with Democratic leaders in the US Congress on coronavirus aid legislation after talks broke down last week.

Investors have been hoping Republicans and Democrats will resolve their differences and agree on another relief program to support about 30 million unemployed Americans, as the battle with the virus outbreak was far from over with US cases surpassing 5 million last week.

The Nasdaq fell more than 1 per cent, extending recent losses and registering its biggest daily percentage decline since 23 July, with investors continuing to shed technology-related market heavyweights in favor of value names.

Apple, Amazon.com and Microsoft were the biggest drags on the S&P 500. Financials and industrials, which have underperformed other sectors this year, were the only two positive S&P 500 sectors on the day.

The Russell 1000 value index rose sharply during the session before ending near flat. It sharply outperformed the Russell 1000 growth index, which sank 1.5 per cent.

In early afternoon trading, the S&P 500 hit a session high of 3,381.01, putting it just 0.15 per cent shy of its 3,386.15 record closing high and 0.37 per cent from its 3,393.52 all-time intraday peak, both registered on 19 February.

Ultra-low interest rates, trillions of dollars in stimulus and, more recently, a better-than-feared second-quarter earnings season have allowed all three of Wall Street's main indexes to recover.

Australian Market

Local Markets Are Expected To Open Higher

Ahead of the local open SPI futures were 9 points higher at 6103.

Tuesday 11 August 2020 - close [Morningstar with AAP]: Australia's banks have played a major role in helping shares move higher for a second consecutive day.

The financial sector gained 1.14 per cent and the S&P/ASX200 benchmark index closed higher by 28.5 points, or 0.47 per cent, at 6138.7 points on Tuesday.

The All Ordinaries index closed up by 25.0 points, or 0.40 per cent, at 6272.1.

The banks thrived on a positive lead from US markets, after officials in President Donald Trump's administration said on Monday that they were ready to resume negotiations on a coronavirus aid deal.

Trump signed executive orders restoring some unemployment payments and suspending payroll taxes on Saturday after talks stalled, highlighting the struggle to reach consensus.

Bell Direct market analyst Jessica Amir said cyclicals, those shares tied closely to economic recovery such as banks, particularly benefited on the ASX.

"There is belief that there is going to be support in the US for those doing it tough," she said.

Another of those cyclicals, property, was the best performing sector, up 2.06 per cent.

CMC Markets strategist Michael McCarthy was surprised by the ASX momentum.

"I certainly wasn't tipping this rise," he said.

He noted trading volumes on the ASX were light, and this could be a sign of caution at the start of the reporting season.

"The trading volumes could indicate institutional investors sat on the sidelines and it was day traders doing the buying," he said.

The Commonwealth Bank issues its results on Wednesday, but investors were not afraid to buy into the sector.

ANZ was higher by 1.76 per cent to $18.49, Commonwealth rose by 0.97 per cent to $74.70, NAB gained 2.41 per cent to $17.88 and Westpac was up 2.66 per cent to $17.78.

There were no shocks from virus cases announced in Australia on Tuesday morning. Another 19 Victorians died and 331 new cases of the virus were recorded in that state.

NSW, the only other state where authorities are concerned about infection levels, recorded 22 new cases. Most were from a cluster at a school in Sydney's northwest.

Earlier in today's session, there were record high share prices for Coles ($19.16), Fortescue ($18.92), REA Group ($117.54) and Wesfarmers ($47.44).

Elsewhere on the market, miners were doing nicely. BHP rose by 0.9 per cent to $40.20, Rio Tinto was higher by 0.85 per cent to $102.79 and Fortescue Metals followed its record high by closing lower by 0.59 per cent to $18.38.

Building products manufacturer James Hardie gained 6.83 per cent to $32.22 after fibre cement sales in North America helped its first-quarter results.

Management expect full-year net operating profit to be between $330 million and $390 million. Hardie recorded a $352.8 million profit for 2020.

Sydney Airport is in a trading halt after it revealed plans for an equity raising and a hit to its first-half results. The shares last traded at $5.39.

Australia's most active airport reported a net loss of $53.6 million for the first half of this calendar year - a dramatic turnaround from a profit of $17.3 million for the same time last year.

Management will cut costs and debt and warned jobs could be lost after the coronavirus pandemic forced it into the red.

Shares in Australian biotech Mesoblast plunged by 31.01 per cent to $3.36 ahead of its meeting this week with US government officials for the approval of its product called Ryoncil.

Mesoblast said the intravenous therapy can treat steroid-refractory acute graft-versus-host disease in children.

Ampol said it would restart its refinery in Lytton, Brisbane during September. The company brought forward maintenance when fuel demand dropped amid the coronavirus crisis.

Ampol shares were trading lower by 0.61 per cent to $29.57.

The Australian dollar was buying 71.60 US cents at 1711 AEST, lower from 71.67 US cents at Monday's close.

ON THE ASX

* The S&P/ASX200 benchmark index closed higher by 28.5 points, or 0.47 per cent, at 6138.7 points on Tuesday.

* The All Ordinaries index closed up by 25.0 points, or 0.40 per cent, at 6272.1.

* At 1711 AEST, the SPI200 futures index was trading higher by 6.0 points, or 0.1 per cent, at 6,100 points.

The NZX 50 Lost -240.37 points (-2.11%) to 11404.95

Annual General Meetings today (ASX 300)

  • No Annual General Meetings today

Companies trading ex-dividend today (ASX 300)

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

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

  • GPT Group
  • GUD Holdings Limited

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