Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn
About

Overseas Market Report

Text Size    

Overseas Market Report - International Markets Roundup

Tuesday 18 June 2019 | Close

[Morningstar with AAP]: Wall Street has surged and the S&P 500 approached a record high after Washington rekindled trade talks with Beijing, boosting sentiment along with growing investor confidence that the Fed will cut interest rates this year.

Tuesday 18 June 2019 | Close

Foreign Equities Close Change %Change
Dow Jones (US) 26466 353 1.35
S&P 500 2918 28 0.97
NASDAQ 7954 109 1.39
FTSE 100 Index 7443 86 1.17
DAX 30 12332 246 2.03
CAC 40 5510 119 2.20
Nikkei 225 (Japan) 20973 -151 -0.72
HKSE 27499 272 1.00
SSE Composite Index 2890 3 0.09
NZ 50 10191 21 0.21

Tuesday 18 June 2019 | Close

Commodities US$ Close Change %Change
Aluminium /t 1752 24 1.36
Copper /t 5925 107 1.84
Nickel /t 11871 183 1.57
Gold /oz 1346 2 0.18
Silver /oz 15.0 0.2 1.16
Oil - West Texas crude /bbl 54.1 1.9 3.72
Lead /t 1916 25 1.31
Zinc /t 2630 42 1.62

Tuesday 18 June 2019 | Close

Currency Close Pts Change % Change
$A vs $US 0.6875 0.0027 0.39
$A vs GBP 0.5474 0.0012 0.23
$A vs YEN 74.55 0.20 0.28
$A vs EUR 0.6142 0.0038 0.62
$A vs $NZ 1.0528 -0.0012 -0.12
$US vs Euro 0.8930 0.0023 0.26
$US vs UK 0.7962 -0.0011 -0.13
$US vs CHF 1.0002 0.0016 0.16

[Morningstar with AAP]: Wall Street has surged and the S&P 500 approached a record high after Washington rekindled trade talks with Beijing, boosting sentiment along with growing investor confidence that the Fed will cut interest rates this year.

Asia

China stocks inched higher on Tuesday in thin trade as market participants exercised caution ahead of the US Federal Reserve's two-day policy meeting.

The Shanghai Composite index was up 0.1 per cent, closing at 2,890.16, while the blue-chip CSI300 ended 0.4 per cent higher at 3,667.62 points.

Hong Kong stocks closed higher on Tuesday, extending a rally from the previous session, aided by strong inflows from the mainland as the protests subsided.

The Hang Seng index ended up 1 per cent at 27,498.77 points, while the China Enterprises Index closed 0.8 per cent higher at 10,507.65 points.

Hong Kong leader Carrie Lam said she had heard the people "loud and clear" and apologised again for the recent upheaval, after a proposed change to extradition laws prompted some of the most violent protests the city has seen.

Elsewhere in the region, MSCI's Asia ex-Japan stock index was firmer by 0.56 per cent, while Japan's Nikkei index closed down 0.72 per cent to 20,972.71 - its lowest close since 7 June. The broader Topix also dropped 0.7 per cent to 1,528.67.

Europe

European stocks hit six-week highs on Tuesday, boosted by dovish remarks from European Central Bank chief Mario Draghi along with news that the US and China would resume trade talks at the G20 summit.

The pan-European STOXX 600 index closed 1.8 per cent higher, after having fallen as much as 0.5 per cent earlier in the day, but rose to its best day in five months at the close.

Italy's FTMIB, France's CAC 40 and Germany's DAX climbed more than 2 per cent, while most others ended more than 1 per cent higher.

Draghi hinted at the possibility of new rate cuts or asset purchases if inflation did not head back to its targets. His comments weakened the euro, lowered European bond yields to fresh lows and helped stock markets climb globally.

Eurozone stocks jumped most markedly, up 2 per cent as the lower currency benefited exporters in the economic zone.

More positive sentiment stemming from news that Washington and Beijing would resume trade talks later this month bumped up trade-sensitive auto shares and basic resources stocks. Bond-proxy utilities stocks gained 2.3 per cent yesterday.

However, German chipmaker Siltronic fell 7.8 per cent after issuing a second profit warning in two months, following closely from US chipmaker Broadcom's shock announcement of a $2 billion drop in sales for 201

But other European chipmakers STMicroelectronics, ASM International and ASML Holding, which were pressured by Siltronic's results earlier, recovered losses to trade higher, pinning hopes on a positive outcome from the G20 summit.

N America

Wall Street has surged and the S&P 500 approached a record high after Washington rekindled trade talks with Beijing, boosting sentiment along with growing investor confidence that the Fed will cut interest rates this year.

US President Donald Trump on Tuesday said he would meet with Chinese President Xi Jinping at the G20 summit later this month, and said talks between the two countries would restart after a recent lull.

Trump's statement pushed trade-sensitive industrials up 1.9 per cent and technology stocks gained 1.7 per cent - combining as the biggest boost to the S&P500 index.

The benchmark index was up 0.97 per cent to 2,917.75 at the close, and the Dow Jones Industrial average jumped 1.35 per cent to end at 26,465.54 points.

The Nasdaq Composite was up 108 points, or 1.39 per cent, to 7,953.88 at the close.

Chip companies, which have a sizeable revenue exposure to China, led the rally in tech stocks, with the Philadelphia Semiconductor index surging 4.3 per cent.

The US-China trade war and its impact on economic growth have investors increasingly expecting the Federal Reserve will cut rates to preserve the US economic expansion, which would be the longest on record this summer.

The Fed is widely expected to leave interest rates unchanged at its two-day policy meeting that ends Wednesday, while laying the foundation for a cut later this year.

The Fed is scheduled to release its statement at 2pm local time on Wednesday, and Chairman Jerome Powell will hold a press conference shortly after.

Australian Market

Local Markets Are Expected to Open Higher

Ahead of the local open SPI futures were 39 points higher at 6,614.

Tuesday 18 June - close [Morningstar with AAP]: The Australian share market has closed broadly higher following the release of board meeting minutes indicating the Reserve Bank is likely to cut interest rates again in the months ahead.

The benchmark S&P/ASX200 index finished up 39.1 points, or 0.6 per cent, to 6,570 points at 1615 AEST on Tuesday, while the broader All Ordinaries was up 38.5 points, or 0.58 per cent, to 6,647.9.

"It's a surprising day," said Pepperstone chief market strategist Chris Weston. "The volume going through the market has been absolutely huge," more than 50 per cent more than normal close to the closing bell.

With markets in Tokyo and Shanghai down "we're having one of the better performances around the region," Mr Weston said, attributing it to the RBA board minute disclosure.

Markets are now pricing in a 75 per cent chance of a rate cut by August, Mr Weston said.

"That's really positive for us to see," he said, referring to equities traders.

Consumer discretionary, health care, tech stocks and property trusts all posted gains of over one per cent, and the ASX200 set a fresh 11-and-a-half year high.

"CSL's been an absolute beast today," Mr Weston said, with the pharma giant gaining 1.8 per cent in heavy volume to hit a nine-month high of $215.20.

The company makes its money in US dollars and euros, while reports in Australian dollars, so the falling Aussie should improve its earnings, Mr Weston said.

Coles gained 3.5 per cent to $13.21 after the supermarket giant said it was targeting $1 billion in cumulative savings over four years.

Others in the consumer sector also advanced, with Woolworths up one per cent to $32.62 and Wesfarmers gaining 1.8 per cent to $36.42.

The big four banks were mostly up, with Commonwealth gaining 1.6 per cent to hit an 18-month high of $81.45, Westpac up 0.2 per cent to $26.72 and NAB up 0.2 per cent to $26.72. ANZ was flat at $28.28.

The mining sector was subdued, up 0.1 per cent, with BHP flat at $40.16, Rio Tinto down 0.2 per cent to $103.70 and Fortescue Metals up 0.6 per cent to $8.52.

BlueScope Steel was down 1.5 per cent to $11.01 after announcing its full-year earnings were likely to miss expectations due to softer than anticipated market conditions in Southeast Asia and North America.

Tech stocks were up 1.2 per cent, with Xero up 2.1 per cent to $60.34, Computershare up 0.9 per cent to $16.61 and Afterpay Touch up 4.9 per cent to $21.27 after losing more than 20 per cent of its value over the previous three days.

The Aussie dollar fell 0.17 per cent after the release of the RBA minutes, buying 68.39 US cents, from 68.74 US cents on Monday.

Looking forward, all eyes will be on the US Federal Open Market Committee meeting for clues that the world's largest economy will cut rates, with details are expected between 0300 and 0500 AEST on Thursday.

ON THE ASX:

The benchmark S&P/ASX200 index was up 39.1 points, or 0.6 per cent, to 6,570 points at 1630 AEST on Tuesday.

The All Ordinaries was up 38.5 points, or 0.58 per cent, to 6,647.9.

The NZX 50 added 21.07 points (0.21%) to 10,191.33.

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)

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

© 2019 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. This information is to be used for personal, non-commercial purposes only. No reproduction is permitted without the prior written content of Morningstar. Any general advice or 'class service' have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), or its Authorised Representatives, and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a licensed financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO").