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Overseas Market Report

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Overseas Market Report - International Markets Roundup

Wednesday 27 October 2021 | Close

[Morningstar with Dow Jones]: US stocks fell in choppy trading Wednesday, retreating from records set just the previous day.

Wednesday 27 October 2021 | Close

Foreign Equities Close Change %Change
Dow Jones (US) 35491 -266 -0.74
S&P 500 4552 -23 -0.51
NASDAQ 15236 0 --
FTSE 100 Index 7253 -24 -0.33
DAX 30 15706 -51 -0.33
CAC 40 6754 -13 -0.19
Nikkei 225 (Japan) 29098 -8 -0.03
HKSE 25629 -410 -1.57
SSE Composite Index 3562 -35 -0.98
NZ 50 12976 -45 -0.34

Wednesday 27 October 2021 | Close

Commodities US$ Close Change %Change
Aluminium /t 2665 -151 -5.36
Copper /t 9667 -288 -2.90
Nickel /t 19529 -687 -3.40
Gold /oz 1797 4 0.20
Silver /oz 24.0 -0.1 -0.32
Oil - West Texas crude /bbl 82.7 -2.0 -2.35
Lead /t 2420 -38 -1.56
Zinc /t 3381 -86 -2.47

Wednesday 27 October 2021 | Close

Currency Close Pts Change % Change
$A vs $US 0.7519 0.0007 0.09
$A vs GBP 0.5471 0.0015 0.27
$A vs YEN 85.58 -0.19 -0.22
$A vs EUR 0.6481 0.0003 0.05
$A vs $NZ 1.0477 0.0004 0.04
$US vs Euro 0.8619 -0.0003 -0.03
$US vs UK 0.7276 0.0013 0.18
$US vs CHF 0.9179 -0.0015 -0.16

[Morningstar with Dow Jones]: US stocks fell in choppy trading Wednesday, retreating from records set just the previous day.

Asia

Chinese stocks finished lower Wednesday, with the Shanghai Composite index down 1%. Coal miners slipped after Beijing signalled plans to stabilize coal prices over the long term. Renewable-energy sectors strengthened, with solar-panel maker LONGi Green Energy up 2.3% and electric-vehicle battery maker CATL rising 2.9%.

Hong Kong's Hang Seng Index closed 1.6% lower after a selloff in Chinese tech shares, KGI Securities says. The Hang Seng TECH Index closed 3.2% lower. Alibaba Health Information Technology closed 6.0% lower, Meituan was off 5.1% and Tencent Holdings declined 3.0%.

Japan's Nikkei Stock Average closed flat, erasing earlier losses as US stock futures rose. Among the best performers were Shimano, which soared 8.2% after the maker of bicycle parts and fishing gear raised its fiscal-year revenue and net-profit forecasts.

Europe

European stocks were lower Wednesday amid a choppy session on Wall Street. The pan-European STOXX 600 index, which tracks the performance of companies across 17 European companies, was down 0.36%.

In London, the FTSE 100 slipped 0.33% as UK Treasurer Rishi Sunak delivered a series of spending increases in the Autumn budget.

North America

US stocks fell in choppy trading Wednesday, retreating from records set just the previous day.

The S&P 500 finished down 0.5%, a day after the broad stocks gauge closed at another all-time high. The Dow Jones Industrial Average fell 0.7%, while the technology-focused Nasdaq gave up early gains to finish flat.

Major indexes started the day higher following a string of upbeat earnings reports. Selling pressure then picked up in the afternoon, with shares of energy and financial companies posting among the steepest losses in the market.

Investors say that, overall, corporate earnings have reassured them that companies have been able to take issues like supply-chain problems, inflation and a slowdown in Chinese economic growth in stride. Despite Wednesday's pullback, the S&P 500 remains on course for its biggest monthly advance since November.

"Investors got fairly gloomy in September, clearly against the backdrop of all sorts of macro concerns," said Paul O'Connor, head of the multiasset team at Janus Henderson Investors. "The broader story from results is that companies are managing these dynamics pretty well, and also managing expectations fairly well."

McDonald's shares rose $6.31, or 2.7%, to $242.73 after the fast-food chain said Wednesday that higher prices had lifted its US sales.

Coca-Cola gained $1.05, or 1.9%, to $55.52 after the beverage firm topped Wall Street forecasts for earnings and revenue.

Shares of Robinhood Markets dropped $4.13, or 10%, to $35.44 after the trading app recorded a 35% decline in revenue from the previous quarter, driven by lower volumes of crypto trading.

Meanwhile, energy stocks fell alongside the price of oil. The S&P 500 energy sector finished the day down 2.9%, posting the biggest decline of the broad index's 11 sectors. US crude for December delivery lost $1.99, or 2.4%, to $82.66, posting its steepest one-day percentage decline since mid-August.

Money managers still have worries, ranging from the fate of President Biden's infrastructure and social-spending plans to the potential unwind of Federal Reserve stimulus measures that have boosted markets since early 2020. In the latest sign the economy slowed in the third quarter, data out Wednesday showed durable goods orders fell 0.4% in September from August.

Australian Market

Local Markets Are Expected To Open Lower

Ahead of the local open SPI futures were 40 points lower at 7380.

Wednesday 27 October 2021 - close [Morningstar with AAP]: Higher inflation figures rocked investor confidence on the Australian share market as traders pondered the prospect of an earlier rate rise.

The market reached its highest levels of Wednesday before the Australian September quarter data, which showed underlying inflation rose 0.7 per cent. House and fuel prices were mostly responsible.

For the first time in six years, annual underlying inflation (2.1 per cent) met the Reserve Bank's target range for raising rates.

In response, investors sold more stock. The ASX indices dipped and closed little changed.

The Australian dollar rose but stayed within the 75 US cents band.

St George senior economist Jarek Kowcza said investor expectations were growing that the Reserve Bank would lift the cash rate sooner than planned.

The central bank has said a rate rise will not happen before 2024.

Yet Mr Kowcza claimed underlying inflation would move to the upper end of the RBA target range by the end of next year.

"Australia isn't immune to growing inflationary pressures that have impacted other economies," he said.

Energy prices have been a prominent force and have contributed to higher inflation in China and the US.

Mr Kowcza tipped a rate rise for Australia in 2023.

Overseas, investors are waiting for US economic growth data this week. The figures might influence whether the Federal Reserve changes its timeline for reducing economic stimulus.

Earnings reporting continues in the US. Coca-Cola, General Motors and McDonald's are among those due next and could sway markets.

In Australia, ANZ Bank will give full-year earnings on Thursday. Shares were little changed.

There will be quarterly updates from Coles and Fortescue Metals.

The annual general meetings will include Boral, JB Hi-Fi and casino operator Star Entertainment.

In the latest trading day, rate rise concerns did not deter investors from telecommunications and healthcare shares. They were best on the market.

Consumer staples, materials and utilities had the greatest falls.

The consumer category was mostly affected by Woolworths.

The supermarket giant fell after reporting sales have slowed following the easing of lockdown restrictions in the ACT, NSW and Victoria.

The lockdowns helped first quarter sales rise 7.8 per cent compared to the same period last year.

Shares dipped 3.24 per cent to $39.16.

The benchmark S&P/ASX200 index closed higher by 5.3 points, or 0.07 per cent, to 7448.7.

The All Ordinaries closed down 1.3 points, or 0.02 per cent, to 7758.

Shares in A2 Milk fell steeply after reporting sales of Chinese label infant formula were expected to be significantly lower in the first half of the financial year.

The company said consumers were no longer prioritising overseas brands such as its own. Fewer babies being born in China is not helping, either.

Shares slipped almost 12 per cent to $6.03.

There were notable losses among the miners. Fortescue lost about two-and-a-half per cent. BHP and Rio Tinto each lost more than one per cent.

Banks fared better. NAB was best and rose 1.38 per cent to $29.30.

Communications equipment supplier Codan has won a military contract to supply radios.

The DTC Communications subsidiary secured a multi-year deal and will receive $37.6 million from the first order.

However, Codan boss Donald McGurk said parts of the group's performance remained difficult to forecast.

Shares were down more than 18 per cent to $10.95.

The Australian dollar was buying 75.18 US cents at 1725 AEDT, higher from 75.15 cents at Tuesday's close.

ON THE ASX

* The benchmark S&P/ASX200 index closed higher by 5.3 points, or 0.07 per cent, to 7448.7 on Wednesday.

* The All Ordinaries closed down 1.3 points, or 0.02 per cent, to 7758.

* At 1725 AEDT, the SPI200 futures index was up by one point, or 0.01 per cent, at 7421 points.

The NZX 50 Lost -43.74 points (-0.34%) to 12976.52

Annual General Meetings today (ASX 300)

  • Australian Ethical Investment Limited
  • Data3 Limited
  • Reece Limited
  • The Star Entertainment Group Limited

Companies trading ex-dividend today (ASX 300)

  • Bank of Queensland Limited

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

  • No Companies trading ex-dividend next business day (ASX 300)

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