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Global Market Report - April 27, 2018

Lex Hall  |  27 Apr 2018Text size  Decrease  Increase  |  
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Australia

The local share market is expected to open higher after US stocks rallied on the back of more positive company earnings reports.
At 7am (AEST), the Australian share price futures index was up 44 points, or 0.75 per cent, at 5938. The benchmark S&P/ASX200 was down 10.8 points, or 0.18 per cent, at 5910.8 points, while the broader All Ordinaries index was down 6.4 points, or 0.11 per cent, at 6003 points. The Australian dollar dipped 0.1 per cent, and is buying 75 US cents.The market yesterday was dragged lower by the big four banks after UBS downgraded Westpac in a report that questioned the quality of the lender’s mortgage book. Westpac shares fell $1.05, or 3.6 per cent, to $28.15, their lowest level since February 2016.
ANZ shed 2.1 per cent to $26.57, National Australia Bank fell 2.1 per cent to $28.47 and Commonwealth Bank was 1.7 per cent lower at $72.25.
The banking regulator has also lifted a cap on new lending to property investors, and said it expected lenders to put in place curbs that focus on a borrower’s debt-to-income ratio.
Blood plasma product maker CSL led gains among healthcare players, up 2.4 per cent to $165.65.  

Asia

Asian stocks were supported on Thursday by robust corporate earnings that helped Wall Street quell concerns about the surge in US bond yields. But sagging Chinese shares limited the upside potential of the market.
South Korea’s KOSPI climbed 1.3 per cent, with tech shares buoyed by news of a record quarterly profit from Samsung Electronics.
Japan’s Nikkei rose 0.5 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.15 per cent, as weaker Chinese stocks weighed on the market.
The benchmark Shanghai Composite Index fell 0.9 per cent and the blue-chip CSI300 index dropped 1.4 per cent as tech shares came under pressure following news that U.S. prosecutors have been investigating if China’s Huawei violated U.S. sanctions on Iran.

Europe

Britain’s FTSE underperformed most European peers on Wednesday, failing to join a global bounce as a missed cash flow forecast from Royal Dutch Shell disappointed investors and weighed heavily on the blue chip index .
The FTSE closed up 0.57 per cent at 7421.43 points, slightly below the 0.94 per cent of the pan-European STOXX 600 boosted by encouraging corporate results and a positive start on Wall Street.
Despite a 42 per cent rise in first-quarter profit on stronger oil prices, shares in Shell, a FTSE heavyweight, fell 1 per cent as cash flows fell short of investors’ strong expectations.
The negative surprise meant the British major did not benefit from a rise in oil prices like its French rival Total, which was up 1.5 per cent and whose earnings beat analysts’ expectations.

North America

US stocks rose as each of Wall Street's major indexes ended the session up 1 per cent or higher, boosted by solid earnings results and a rebound in tech stocks as US bond yields pulled back.
The tech-heavy Nasdaq snapped a five-day losing streak while the S&P technology index booked its first up day in six sessions.
Facebook surged 9.1 per cent after posting an impressive earnings beat, which appeared to calm fears about the fallout from its use of consumer data.
Amazon rose more than 6 per cent in after-market trading after the online retailer reported a 43 per cent surge in first-quarter revenue.
General Motors Co edged up 0.4 per cent after the carmaker reported a production drop of its high-margin pickup trucks, despite posting higher-than-expected profit.
The yield on US 10-year Treasuries closed below the 3 per cent level as buyers emerged following a sell-off fuelled by worries over growing US debt issuance and rising costs.
The Dow rose 238.51 points, or 0.99 per cent, to 24,322.34, the S&P 500 gained 27.54 points, or 1.04 per cent, to 2,666.94 and the Nasdaq added 114.94 points, or 1.64 per cent, to 7118.68.

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Lex Hall is a Morningstar content editor, based in Sydney

© 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.

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