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Overseas Market Report

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Overseas Market Report - International Markets Roundup

Thursday 21 June 2018 | Close

NEW YORK [Morningstar with AAP]: US stocks have fallen, with the Dow slumping for an eighth straight decline as industrials wobbled again on trade war concerns while Amazon and other online retailers weakened after a US Supreme Court ruling on state sales tax collection.

Thursday 21 June 2018 | Close

Foreign Equities Close Change %Change
Dow Jones (US) 24462 -196 -0.80
S&P 500 2750 -18 -0.63
NASDAQ 7713 -69 -0.88
FTSE 100 Index 7556 -71 -0.93
DAX 30 12512 -183 -1.44
CAC 40 5316 -56 -1.05
Nikkei 225 (Japan) 22693 138 0.61
HKSE 29296 -400 -1.35
SSE Composite Index 2876 -40 -1.37
NZ 50 8999 93 1.04

Thursday 21 June 2018 | Close

Commodities US$ Close Change %Change
Aluminium /t 2181 14 0.65
Copper /t 6789 25 0.37
Nickel /t 14905 12 0.08
Gold /oz 1267 2 0.18
Silver /oz 16.3 0.1 0.39
Oil - West Texas crude /bbl 65.5 -0.2 -0.26
Lead /t 2363 -23 -0.96
Zinc /t 2971 -66 -2.19

Thursday 21 June 2018 | Close

Currency Close Pts Change % Change
$A vs $US 0.7372 0.0003 0.05
$A vs GBP 0.5569 -0.0024 -0.43
$A vs YEN 81.07 -0.26 -0.32
$A vs EUR 0.6354 -0.0010 -0.16
$A vs $NZ 1.0741 0.0010 0.09
$US vs Euro 0.8617 -0.0020 -0.23
$US vs UK 0.7550 -0.0040 -0.53
$US vs CHF 0.9913 -0.0046 -0.46

NEW YORK [Morningstar with AAP]: US stocks have fallen, with the Dow slumping for an eighth straight decline as industrials wobbled again on trade war concerns while Amazon and other online retailers weakened after a US Supreme Court ruling on state sales tax collection.

Big US manufacturers and car-makers were under pressure after Germany's Daimler cut its 2018 profit forecast and BMW said it was looking at "strategic options" because of a trade war between the US and China.

Caterpillar lost 2.52 per cent and Boeing fell 1.5 per cent on Thursday, with the S&P industrials off 1.19 per cent and on track for their seventh fall in eight sessions.

The Trump administration on Wednesday reversed an administration policy that separated children and parents who entered the country illegally at the US-Mexico border.

Amazon dropped as much as 1.9 per cent after the court ruling, which allows states to force online retailers to collect sales taxes, before paring losses to trade down 1.1 per cent. Wayfair lost 1.6 per cent, Overstock.com tumbled 7.2 per cent, Etsy declined 1.4 per cent and Ebay dropped 3.2 per cent.

Intel also weighed heavily on the S&P 500, down 2.4 per cent after chief executive officer Brian Krzanich resigned following a probe that revealed a past consensual relationship with an employee violated company policy.

The Dow Jones Industrial Average fell 196.1 points, or 0.8 per cent, to 24,461.7, the S&P 500 lost 17.56 points, or 0.63 per cent, to 2,749.76 and the Nasdaq Composite dropped 68.56 points, or 0.88 per cent, to 7,712.95.

The Dow index is heavily affected by industrial companies, and trade concerns pushed it into negative territory for the year earlier this week, with the index on pace for its eighth straight decline.

Ford fell 1.35 per cent, General Motors dropped 1.98 per cent and Tesla lost 4.06 per cent. The S&P 500 cars and components index slumped 1.79 per cent.

Energy was the worst-performing sector, down 1.93 per cent as oil prices fell ahead of a meeting of the Organisation of the Petroleum Exporting Countries, where producers are expected to boost output.

The S&P 500 posted 25 new 52-week highs and 9 new lows; the Nasdaq Composite recorded 130 new highs and 40 new lows.

LONDON - Britain's top share index has fallen as sterling bounced from seven-month lows following a Bank of England policy vote that bolstered expectations of a rate hike in August.

As widely expected, the BoE kept rates unchanged but its chief economist unexpectedly joined the minority of policymakers calling for a hike.

Its Monetary Policy Committee (MPC) voted 6-3 to keep rates at 0.5 per cent. Economists in a Reuters poll had said they expected a continued 7-2 split.

The surprise pushed sterling higher after an earlier drop. That in turn sent the FTSE 100 down and the export-oriented index closed 0.9 per cent lower.

The FTSE 100 Index fell 70.96 points, or 0.93 per cent, to 7,556.44 points.

Barratt Development and Persimmon both fell 3.7 per cent, while Taylor Wimpey lost 3.1 per cent.

Financials and energy stocks weighed on the FTSE as expectations of an OPEC deal to raise output sent oil prices tumbling.

Royal Dutch Shell fell 1.1 per cent and BP 0.9 per cent.

HONG KONG - Hong Kong stocks have ended at a six-month low, as China-US trade conflict fears curbed risk appetite.

The Hang Seng index ended 1.35 per cent lower at 29,296.05, while the China Enterprises Index closed lower by 1.2 per cent at 11,364.66 points.

The sub-index of the Hang Seng tracking energy shares dipped 1.5 per cent, while the IT sector slipped 0.86 per cent, the financial sector closed 1.36 per cent lower and property sector lost 1.2 per cent.

The top gainer on Hang Seng was Country Garden Services Holdings Company Ltd, which ended 15.3 per cent higher, while the biggest loser was Sunny Optical Technology Group Co Ltd, which closed 8.91 per cent down.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.67 per cent, while Japan's Nikkei index closed up 0.61 per cent.

The yuan was quoted at 6.5032 per US dollar at 0810 GMT, 0.44 per cent weaker than the previous close of 6.475.

WELLINGTON - New Zealand shares have rallied, pushing the S&P/NZX 50 Index to a record after Fletcher Building detailed its five-year strategy and affirmed guidance.

The S&P/NZX 50 Index rose 92.99 points, or 1 per cent, to 8,998.78. Within the index, 22 stocks rose, 19 fell and nine were unchanged.

Australian Market

Local Markets Are Expected to Open Lower

Ahead of the local open SPI futures were 30 points lower at 6,136.

Thursday 21 June - close [Morningstar with AAP]: The Australian share market is at its highest level in more than 10 years, with significant gains across most sectors as investors looked past fears of a looming trade war between the US and China.

The benchmark S&P/ASX200 index was up 59.5 points, or 0.96 per cent, at 6,232.1 points, while the broader All Ordinaries was up 58.3 points, or 0.93 per cent, at 6,332.9 points.

Following on from strong leads overnight in overseas markets, local shares opened higher and continued to climb throughout the day.

Consumer stocks rose on Thursday, as the federal Coalition government's $144 billion income tax cuts package cleared Parliament around noon.

Under the first of three stages in the plan, low- and middle-income earners will get tax relief of up to $530 a year from July 1, while benefits for people earning up to $200,000 come into effect in 2024.

Woolworths ended the day up 1.8 per cent, or 5.3 cents at $29.94, while Coles supermarkets owner Wesfarmers was up 2.6 per cent, or $1.25 to $48.78.

Penfolds wine maker Treasury Wine Estates and poker machine maker Aristocrat Leisure were up too as companies with significant operations overseas, and therefore an exposure to changes in exchange rates, benefited from a lower Aussie dollar.

AMP Capital chief economist Shane Oliver said he was surprised by the strong day given the continuing stand-off between the US and China over tariffs in the wake of new imposts worth $US200 billion on Chinese goods threatened by US President Donald Trump.

"It is a bit surprising the market has gone up," he said.

"I would have thought Australia is fairly sensitive to a trade war, particularly with China."

"If it does eventuate, I think the Australian market would take a bit of a hit."

The Australian dollar remains under pressure as trade tensions simmer, trading at 73.51 US cents at 1630 AEST, from 73.99 on Wednesday - it's lowest level since May, 2017.

Telstra suffered losses for the second day in a row after announcing a restructure on Wednesday that includes slashing 8000 jobs.

The telco was down 1.8 per cent at $2.72.

In other company news, private hospital operator Ramsay Health Care ended down 7.5 per cent at $57.49 after it downgraded its full year earnings guidance due to weaker growth in patient numbers and medical procedures.

The company has also warned it will take a $125 million charge on its UK operations due to onerous leases or asset write-downs.

The big four banks were all stronger, led by Commonwealth Bank's gain of 1.4 per cent at $72.90, while BHP Billiton is the strongest of the big miners, up 0.5 per cent at $32.76.

ON THE ASX AT CLOSE:

The benchmark S&P/ASX200 was up 59.5 points, or 0.96 per cent, at 6,232.1 points

The broader All Ordinaries index was up 58.3 points, or 0.93 per cent, at 6,332.9 points

National turnover was 3.7 billion securities traded worth $9.8 billion

Annual General Meetings today (ASX 300)

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

  • Ardent Leisure Group

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