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

News

Global Market Report - 16 February

Lex Hall  |  16 Feb 2021Text size  Decrease  Increase  |  
Email to Friend

Australia

Australian shares are set to rise despite the closure of US markets as European stocks flirted with one-year highs.

The Australian SPI 200 futures contract was up 24 points, or 0.4 per cent, at 6,829 points at 8.30am Sydney time on Tuesday, suggesting a positive start to trading.

US markets were closed for the Presidents Day public holiday.

European shares ended at a near one-year high on Monday as major resource stocks benefited from expectations of a swift economic recovery, while Vivendi led gains on its planned capital distribution from Universal Music.

Locally, billionaire businessmen Lindsay Fox and John Wagner want to house up to 2000 international returnees at separate camps outside state capitals in Victoria and Queensland to help resolve the row over hotel quarantine arrangements, The Australian reports.

The S&P/ASX200 benchmark index closed higher by 62.2 points, or 0.91 per cent, to 6,868.9 on Monday.

The All Ordinaries closed better by 68.4 points, or 0.97 per cent, at 7,149.7.

Investing Compass
Listen to Morningstar Australia's Investing Compass podcast
Take a deep dive into investing concepts, with practical explanations to help you invest confidently.
Investing Compass

Spot gold was down 0.3 per cent to $US1,818.82/oz; Brent crude was up 1.2 per cent to $US63.19 a barrel.

Meanwhile, the Australian dollar was buying 77.84 US cents at 8.30am, down from 77.87 US cents at Monday's close.

Asia

With China and Hong Kong markets closed for the Lunar New Year holiday, Japan’s Nikkei led the way, climbing 1.9 per cent to reclaim the 30,000-point level for the first time in more than three decades.

Europe

European shares ended at a near one-year high on Monday as major resource stocks benefited from expectations of a swift economic recovery, while Vivendi led gains on its planned capital distribution from Universal Music.

The pan-European STOXX 600 rose 1.3 per cent to its highest since late February 2020, with Rio Tinto, BHP Group and Anglo American bolstering the index as copper prices leapt to a more than eight-year high.

Banks and energy stocks also climbed as a so-called “recovery trade” sparked demand for sectors that had underperformed the broader index following early 2020’s coronavirus-driven crash.

Metal and oil prices rose as investors bet on fresh US stimulus and major vaccine programs spurring a resurgence in commodity demand.

Vivendi SE topped the STOXX 600 with a 19.6 per cent jump after the French conglomerate said it intended to distribute 60 per cent of Universal Music’s capital to investors.

Shares of Groupe Bollore, which has a 27 per cent stake in Vivendi, jumped 14.6 per cent.

Anticipation of more US stimulus measures was bolstered after President Joe Biden on Friday turned to a bipartisan group of local officials for help on his US$1.9 trillion ($2.56 trillion) coronavirus relief plan.

Historic monetary and fiscal stimulus has helped the benchmark STOXX 600 rebound about 55 per cent since slumping to a more than seven-year low in March 2020, although it has lagged the US S&P 500 due to prolonged lockdowns in Europe.

A recent Reuters poll found the euro zone economy was in a double-dip recession and that economists now expect GDP to contract 0.8 per cent in the first quarter, reversing an earlier forecast for growth of 0.6 per cent.

Adding to doubts over a euro zone recovery, data showed industrial production shrank more than expected in December under the weight of falling output of capital and non-durable consumer goods, confirming an economic contraction in the fourth quarter.

However, analysts said a global economic recovery was set to benefit euro zone sectors that were exposed to trade.

“New orders for manufacturing continue to grow quickly and the rest of the world continues to recover, which bodes well for the start of 1Q in terms of exports and production,” ING analysts wrote in a note.

“This makes manufacturing the bright spot in an otherwise downbeat short-term outlook.”

Trading volumes were thin for the day, with markets in China, Hong Kong and the US shut for local holidays.

North America

US markets were closed for the Presidents Day public holiday.

With Reuters

is senior editor for Morningstar Australia

AAP logo

© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

Email To Friend