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Overseas Market Report

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Overseas Market Report - International Markets Roundup

Thursday 22 April 2021 | Close

[Morningstar with AAP]: US stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news that analysts said provided an excuse to take profits in a directionless market ahead of big techs earnings next week.

Thursday 22 April 2021 | Close

Foreign Equities Close Change %Change
Dow Jones (US) 33816 -321 -0.94
S&P 500 4135 -38 -0.92
NASDAQ 13818 -132 -0.94
FTSE 100 Index 6938 43 0.62
DAX 30 15321 125 0.82
CAC 40 6267 57 0.91
Nikkei 225 (Japan) 29188 680 2.38
HKSE 28755 133 0.47
SSE Composite Index 3465 -8 -0.23
NZ 50 12619 41 0.33

Thursday 22 April 2021 | Close

Commodities US$ Close Change %Change
Aluminium /t 2364 -3 -0.12
Copper /t 9421 -38 -0.40
Nickel /t 16019 -132 -0.82
Gold /oz 1784 -3 -0.16
Silver /oz 26.1 -0.4 -1.36
Oil - West Texas crude /bbl 61.4 0.1 0.13
Lead /t 2029 29 1.46
Zinc /t 2806 11 0.38

Thursday 22 April 2021 | Close

Currency Close Pts Change % Change
$A vs $US 0.7704 -0.0048 -0.62
$A vs GBP 0.5567 0.0003 0.05
$A vs YEN 83.17 -0.59 -0.70
$A vs EUR 0.6412 -0.0027 -0.41
$A vs $NZ 1.0756 -0.0004 -0.04
$US vs Euro 0.8322 0.0016 0.19
$US vs UK 0.7226 0.0049 0.69
$US vs CHF 0.9170 0.0005 0.05

[Morningstar with AAP]: US stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news that analysts said provided an excuse to take profits in a directionless market ahead of big techs earnings next week.


China stocks weakened on Thursday, as Sino-US tensions dampened sentiment, offsetting a series of upbeat corporate earnings for the first quarter.

The blue-chip CSI300 index fell 0.2 per cent to 5,089.24, while the Shanghai Composite Index shed 0.2 per cent to 3,465.11.

At the close of trade, the Hang Seng index was up 133.42 points, or 0.47 per cent, at 28,755.34. The Hang Seng China Enterprises index rose 0.46 per cent to 10,939.12.

A bipartisan US congressional push to counteract China picked up steam on Wednesday as a Senate committee overwhelmingly backed a bill pressing Beijing on human rights and economic competition and other lawmakers introduced a measure seeking billions for technology research.

Though the stock market has been quite stable for the past few weeks, Ken Cheung, chief Asian FX strategist at Mizuho Bank in Hong Kong, said market sentiment stabilized on news China considered supporting Huarong with central bank funds.

The value of shares investors in China's onshore stock markets have borrowed to sell short reached 151.9 billion yuan ($23.43 billion) on Wednesday, just a touch below a record high hit on Tuesday.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.36 per cent, while Japan's Nikkei index closed up 2.38 per cent


European stocks moved towards record highs on Thursday, following a set of strong company earnings and as the European Central Bank left policy unchanged as expected.

Heavyweight Nestle rose almost 3 per cent after reporting its strongest quarterly sales growth in 10 years, while software group SAP and French spirits group Pernod Ricard were among some of the other stocks to surge after results.

The pan-European STOXX 600 index rose 0.7 per cent, extending gains for a second day, after fears of a new wave of COVID-19 cases pushed European markets to their worst day in 2021 on Tuesday.

The ECB's decision to keep rates unchanged as widely expected sets the stage for a battle at the June 10 meeting, when policymakers have to decide whether to slow bond buying, even if that means allowing borrowing costs to drift higher.

Shares of renewable energy companies such as Vestas and Siemens Gamesa surged, with Vestas jumping 10 per cent for its best day in a month, after the Biden administration on Thursday pledged at a US climate summit to slash US greenhouse gas emissions in half by 2030.

Birkin bag maker Hermes was up 2.1 per cent as strong growth in Asia powered a 44 per cent surge in quarterly sales.

North America

US stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news that analysts said provided an excuse to take profits in a directionless market ahead of big tech's earnings next week.

The Dow Jones Industrial Average fell 0.94 per cent to 33,815.9, the S&P 500 lost 0.92 per cent at 4,134.98, and the Nasdaq Composite dropped 0.94 per cent to 13,818.41.

Biden will propose raising the marginal income tax rate to 39.6 per cent from 37 per cent and nearly double capital gains taxes to 39.6 per cent for people earning more than $1 million, sources told Reuters.

The proposal targets about $1 trillion for child care, universal pre-kindergarten education and paid leave for workers, the sources said.

Markets have been listless after the Dow and S&P 500 recently scaled all-time peaks as investors await guidance from Microsoft Corp, Google parent Alphabet Inc and Facebook Inc when they report earnings next week.

'Until we get out of this information vacuum the market is going to be generally directionless,' said Thomas Hayes, chairman and managing member at hedge fund Great Hill.

'All that really matters moving forward is what are those big tech earnings next week?'

Investors welcomed data showing the number of Americans filing new claims for unemployment benefits last week dropped to a fresh one-year low. The Labor Department report suggested layoffs were subsiding and expectations were rising for another month of blockbuster job growth in April.

Chipmaker Intel Corp forecast second-quarter revenue above Wall Street targets, betting its next generation of processors for data centers and PCs will meet growing demand for cloud-based services. Shares slipped about 1 per cent in after-hours trade.

AT&T Inc beat Wall Street revenue targets as the US economic reopening following pandemic-linked restrictions boosted smartphone sales and the media business. AT&T shares rose 4.2 per cent.

With Reuters

Australian Market

Local Markets Are Expected To Open Lower

Ahead of the local open SPI futures were 15 points lower at 7010.

Thursday 22 April 2021 - close [Morningstar with AAP]: Australia's share market has rebounded from two consecutive days of losses to stand 11 points short of its best close since February last year.

The benchmark S&P/ASX200 index wavered early then improved and closed up 57.9 points, or 0.83 per cent, to 7055.4.

The index is a little more than 100 points from its record high (7197.2), set days before the coronavirus crash started in February last year.

The All Ordinaries on Thursday closed higher by 53.1 points, or 0.73 per cent, to 7312 points.

Health and technology shares were best, and gained 1.74 and 1.51 per cent respectively.

Market giant CSL continued its momentum and rose by 1.81 per cent.

The biotech began Wednesday at $263.34 and closed on Thursday at $272.80.

In technology, Afterpay gained 2.64 per cent to $125.03.

Shares in property, industrials and consumer staples gained more than one per cent.

There was no obvious reaction from investors to Australia's foreign minister tearing up Victoria's Belt and Road agreement with China.

The deal would have given Chinese companies more opportunity to win infrastructure business with the state government.

Senator Marise Payne said the decision ensured consistent foreign policy across all levels of government.

A Chinese embassy spokesperson said the decision was bound to damage bilateral relations.

US markets provided a good lead. Investors continued to work through company earnings reports while keeping an eye on bond yields, which eased lower.

IG Markets analyst Kyle Rodda noted the Australian 10-year bond yield fell during the local session.

"Aussie yields continue to look primed for further downside," he said.

There was plenty of news in energy.

AGL boss Brett Redman is leaving after only last month starting efforts to create separate coal-fired power and clean energy businesses.

The company said Mr Redman had resigned as he could not commit beyond the proposed demerger.

Shares were lower by 2.87 per cent to $8.80.

Santos said first quarter oil production was down by two per cent on the previous quarter due to lower gas demand in Western Australia.

Sales were up five per cent on the previous quarter to $964 million despite lower sales volumes.

Shares were lower by 0.29 per cent to $6.92.

Woodside also had a first quarter production update. Oil production dropped on the past quarter by 1.2 million barrels due to the cyclone season.

However, sales rose by 22 per cent due to higher prices.

Shares were down 0.61 per cent to $22.86.

Wealth manager AMP reported the loss of another corporate superannuation account but said cash flow was better.

"Business performance remained resilient during the first quarter," boss Francesco De Ferrari said.

Cashflows in the AMP's wealth management arm are showing underlying signs of improvement, he added, pointing to a "reduction in outflows from corporate super mandates".

Shares were down 3.43 per cent to $1.12.

There was a plunge in the shares of online marketplace Redbubble, which fell 23.05 per cent to $4.24.

The company posted third quarter figures and claimed improvements in profit and sales on the previous year, but missed investors' expectations.

Royal Bank of Canada analyst Tim Piper said executives' comments implied fewer earnings over the next couple of years.

Miners were mixed despite the iron price being $US185 per tonne.

BHP and Rio Tinto gained less than one per cent, while Fortescue lost 1.3 per cent to $21.32.

In banking, the Commonwealth was best of the big four and rose 1.1 per cent to $89.14.

The Australian dollar was buying 77.58 US cents at 1718 AEST, higher from 77.14 US cents at Wednesday's close.


* The benchmark S&P/ASX200 index closed up 57.9 points, or 0.83 per cent, to 7055.4 on Thursday.

* The All Ordinaries closed higher by 53.1 points, or 0.73 per cent, to 7312 points.

* At 1718 AEST, the SPI200 futures index was down by 12 points, or 0.17 per cent, to 7013.

The NZX 50 added 38.95 points (0.31%) to 12616.43

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