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 - 18 September

Lex Hall  |  18 Sep 2018Text size  Decrease  Increase  |  
Email to Friend

Australia

Australian shares are poised for a subdued open after Wall Street extended its losses overnight and Donald Trump's escalation of the trade war by imposing new tariffs on $200 billion worth of Chinese goods.

Mr Trump also warned that any retaliation by China to the latest attack would "immediately" trigger preparation for tariffs on another $US267 billion of imports. That would effectively cover every item imported into the US by China.

The 10 per cent tariff comes into effect on September 24, and will remain in place until the end of the year.

In futures trading, the SPI200 futures contract was down four points, or 0.06 per cent, to 6,179 points at 8.30am Sydney time. The Australian dollar is buying 71.79 US cents, from 71.60 US cents at Monday's close.

On Wall Street overnight, all three major US indexes were lower, with the tech-heavy Nasdaq posting its biggest percentage loss since late July.

The fall was led by declines in technology and consumer discretionaries ahead of Trump's pending tariff announcement, to which China has already pledged retaliation.

The Dow Jones Industrial Average fell 92.55 points, or 0.35 per cent, to 26,062.12, the S&P 500 lost 16.18 points, or 0.56 per cent, to 2888.8 and the Nasdaq Composite dropped 114.25 points, or 1.43 per cent, to 7895.79.

Consumer discretionary and technology were the biggest percentage losers on the S&P 500, falling 1.3 per cent and 1.4 per cent, respectively.

Locally, the RBA is set to release the minutes of its last interest rate meeting, potentially offering investors a clue about future decisions.

Full-year profits for adventure clothing retailer Kathmandu surged by almost a third to $NZ50.5 million ($46.3 million) after a big jump in Australian sales for the outdoor equipment retailer.

TPG Telecom has announced a 4.6 per cent drop in full-year profit to $369.9 million as it prepares for its merger with Vodafone, while second quarter house prices are expected to be released by the ABS.

Out today: ABS house prices second quarter, RBA September board meeting minutes

Asia

The Shanghai Composite Index fell 1.1 per cent to 2651.79 points, passing its 2016 post-crash low of 2655.66. The gauge is one of the worst performing in the world this year, down about 25 per cent from a January high, dogged by concern about China's economy and the trade war, among other factors.

Hong Kong, which hasn't fared much better, was dealt an extra blow by Typhoon Mangkhut over the weekend, which forced Macau casinos to close and cancelled hundreds of flights. The Hang Seng Index lost 1.3 per cent.

Europe

European shares recovered from a weak start on Monday and closed in positive territory after a choppy session.

The pan-European STOXX 600 reversed early losses to rise 0.1 per cent at the close, while Germany's DAX, home to large exporters and carmakers, was down 0.2 per cent.

North America

US stocks have fallen, led by declines in technology and consumer discretionary stocks as investors looked to President Donald Trump's announcement regarding tariffs on $US200 billion of Chinese imports.

All three major US indexes were lower, with the tech-heavy Nasdaq posting its biggest percentage loss since late-July.

Wall Street extended its losses ahead of the tariff announcement after Trump said the US's trade deficit with China was too big, stating "we can't do that anymore."

Earlier, China vowed that it will not play defence in the escalating trade dispute, adding further fuel to tensions as a new list of items subject to tariffs, including technology and consumer goods, was anticipated from Washington.

Consumer discretionary and technology were the biggest percentage losers on the S&P 500, falling 1.3 per cent and 1.4 per cent, respectively.

Amazon.com led consumer discretionary stocks lower, falling 3.2 per cent.

Apple has said the moves could hit a "wide range" of its products. The iPhone maker's shares were down 2.7 per cent, providing the biggest drag on the Dow, despite earlier reports that the

US would spare some of its products in the latest round of tariff actions.

All of the so-called FAANG group of momentum stocks closed down between 1.0 per cent and 3.9 per cent. Other FAANG stocks include Netflix, Facebook and Google-parent Alphabet.

 

More from Morningstar

Digital sales are Myer's silver lining

Dividend growth tipped to flatten

Make better investment decisions with Morningstar Premium | Free 4-week trial

 

Morningstar with AAP, Reuters and Bloomberg 

Lex Hall is content editor, Morningstar Australia

© 2018 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 consent 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"). The article is current as at date of publication.

 

is content editor for Morningstar Australia

© 2020 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 consent 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. The article is current as at date of publication.

Email To Friend