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Global Market Report - 28 April

Lewis Jackson  |  28 Apr 2021Text size  Decrease  Increase  |  
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Australia

Australian shares are set to open higher, bolstered by yet further gains in the price of iron ore.

The Australian SPI 200 futures contract was up 15 points or 0.2 per cent to 7019 near 6.30am Sydney time on Wednesday, suggesting a positive start to trading.

Tepid results from Tesla and 3M weighed on Wall Street on Tuesday, with the S&P 500 and Dow ending near flat as investors focused on a wave of earnings reports from Microsoft, Alphabet and other corporate heavyweights.

The Dow Jones Industrial Average rose 0.01 per cent to end at 33,984.93 points, while the S&P 500 lost 0.02 per cent to 4,186.72. The Nasdaq Composite dropped 0.34 per cent, to 14,090.22.

Locally, investors rushed to sell technology stocks and the Australian market fell for a second consecutive day Tuesday in the leadup to US tech giants reporting earnings this week.

The benchmark S&P/ASX200 index closed lower by 11.8 points, or 0.17 per cent, to 7033.8.

The main index remains less than 200 points from its record, 7197.2.

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The All Ordinaries closed lower by 12.3 points, or 0.17 per cent, to 7295.5 points.

Information technology shares had the biggest drop, 2.53 per cent.

Buy now, pay later provider Zip shed 6.31 per cent to $8.02. Rival Afterpay lost 5.53 per cent to $115.96.

US giants Microsoft, Google parent Alphabet, Apple and Facebook report earnings this week.

The US central bank is also expected to discuss whether gains in employment have affected its plan to leave rates near zero.

Australia blocked direct flights from India until May 15 as the latter struggles with record infections. Australia also pledged aid after India recorded 323,144 infections in 24 hours.

Gambling giant Tabcorp received a $3.5 billion offer for its wagering business. The improved offer from the UK-based sports betting group Entain, which owns Ladbrokes, was unsolicited, Tabcorp said.

Shares were up 4.17 per cent to $5.00

BlueScope Steel raised its second-half earnings forecast, largely due to surging steel prices in the US.

BHP climbed 1.13 per cent to $48.38, Fortescue gained 1.15 per cent to $22.96 and Rio Tinto increased by 0.92 per cent to $123.64.

Family app developer Life360 surged by 13 per cent to $5.91 after it said it would buy wearable device provider Jiobit for at least $US37 million.

Gold was down 0.2 per cent at $US1777.60 an ounce; Brent crude was up 1.7 per cent to $US66.73 a barrel; Iron ore was up 0.9 per cent to $US195.31 a tonne.

Meanwhile, the Australian dollar was buying 77.69 US cents at 7:00am, down from 78.00 this time Tuesday.

Asia

China’s blue-chip share index shed early losses to end higher on Tuesday, helped by a boost from healthcare and consumer staples, though weak performances in industrials weighed after data showed a slowing pace of profit growth in the sector.

At the close, the blue-chip CSI300 index was up 0.26 per cent, while the Shanghai Composite index ended 0.04 per cent higher at 3,442.61.

Profit at China’s industrial firms grew sharply in March from a low base a year earlier, as demand for raw materials surged along with the economic recovery, though the pace of growth has slowed, official data showed on Tuesday.

At the close of trade, the Hang Seng index was down 11.29 points or 0.04 per cent at 28,941.54. The Hang Seng China Enterprises index rose 0.02 per cent to 10,983.46.

Around the region, MSCI’s Asia ex-Japan stock index was 0.02 per cent weaker, while Japan’s Nikkei index closed down 0.46 per cent.

Europe

European stocks ended a shade lower on Tuesday as optimism over strong British earnings was offset by UBS disclosing a hit from dealing with US investment firm Archegos, while travel stocks hit record highs on hopes of a post-COVID rebound.

The pan-European STOXX 600 index slipped 0.1 per cent, with investors holding off big bets ahead of the US Federal Reserve’s policy decision on Wednesday. The bank is widely expected to maintain easy monetary policy.

Oil major BP rose 0.4 per cent after its first-quarter profit soared and it planned share buybacks, while Asia-focused lender HSBC gained 4.2 per cent after it reported an upbeat quarterly profit.

Meanwhile, UBS fell 2.0 per cent to a two-month closing low as it took an unexpected $774 million hit from Archegos, overshadowing a forecast-beating 14 per cent rise in quarterly net profit.

About a quarter of STOXX companies are set to publish earnings this week. Among the 17 per cent that have reported so far, 65 per cent topped profit estimates, according to Refinitiv IBES data.

North America

Tepid results from Tesla and 3M weighed on Wall Street on Tuesday, with the S&P 500 and Dow ending near flat as investors focused on a wave of earnings reports from Microsoft, Alphabet and other corporate heavyweights.

The Dow Jones Industrial Average rose 0.01 per cent to end at 33,984.93 points, while the S&P 500 lost 0.02 per cent to 4,186.72. The Nasdaq Composite dropped 0.34 per cent, to 14,090.22.

Electric-car maker Tesla Inc dropped 4.5 per cent after its quarterly results late on Monday fell short of some investors’ expectations, with its revenue beat largely supported by sales of environmental credits and selling bitcoin, rather than vehicle sales.

In extended trade on Tuesday, Microsoft Corp fell nearly 4 per cent following its quarterly report, while Google-parent Alphabet jumped 5 per cent following its report.

Shares of 3M Co fell 2.6 per cent after the conglomerate said supply chain disruptions from the COVID-19 pandemic and the February winter storm were pushing up its costs.

Investors will monitor the Federal Reserve’s two-day meeting for cues on the central bank’s thinking on inflation, bond buying and risks to the financial system posed by soaring asset prices. The Fed is not expected to change its policy guidance at the end of the meeting on Wednesday.

In the latest upbeat economic data, US consumer confidence jumped to a 14-month high in April as more services businesses reopened on increased vaccinations and additional fiscal stimulus.

With Reuters

is a reporter and data journalist with Morningstar. Tweet him @lewjackk or get in touch via email

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