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 - July 19, 2018

Lex Hall  |  19 Jul 2018Text size  Decrease  Increase  |  
Email to Friend

Australia

Australian shares look set to rise following gains by the local mining sector and on Wall Street overnight as expectations of a strong second-quarter earnings season build.

The Australian futures index was up 9 points, or 0.15 points, to 6203, at 8.30am Sydney time. The Australian dollar is buying 73.98 US cents, up from 73.50 US cents yesterday. The Aussie dollar is now down more than 5 per cent since the start of the year when it traded above 80 US cents.

US-listed shares of BHP rose 2.3 per cent while Rio Tinto rose 1.3 per cent. Adding to momentum was BHP's bullish operational report yesterday morning as well as a bounce in the spot price of iron ore, a rebound in the price of oil and some selling respite for copper.

The Dow Jones Industrial Average closed up 0.32 per cent at 25,199 points. The S&P 500 advanced 0.2 per cent to 2815.62, while the Nasdaq dipped to 7854.44 after closing at a record yesterday.

Out today: June jobs data. NAB expects an increase of more than 10,000 jobs, down on consensus expectations of 16,500.

Asia

China stocks erased earlier gains and ended lower as a weaker yuan eroded prices of real estate developers and airliners.

The blue-chip CSI300 index fell 0.5 per cent to 3431.32 while the Shanghai Composite Index lost 0.4 per cent to 2787.26 points. About 12.10 billion shares were traded on the Shanghai exchange, about 93.3 per cent of the market's 30-day moving average of 12.97 billion shares a day.

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

In Hong Kong, the Hang Seng index fell 0.2 per cent, to 28,117.42, while the China Enterprises Index lost 0.1 per cent, to 10,578.46 points.

China's yuan hit a two-week low against a broadly stronger US dollar on Wednesday, breaching the key 6.7 per US dollar level.

Japan's Nikkei share average advanced to a more than one-month high as exporters such as carmakers and tech firms got a boost after the dollar hit a six-month high against the yen.

The Nikkei gained 0.4 per cent to end at 22,794.19, its highest closing point since June 15. The broader Topix gained 0.4 per cent to 1751.21.

Europe

European shares hit a one-month high, supported by currency weakness and a rally in tech stocks following well-received earnings updates and a record close for the Nasdaq.

A weaker pound helped Britain's top share index advance as company earnings took centre stage with Smiths Group suffering.

The blue-chip FTSE 100 index rose 0.7 per cent, in line with a broader rally among European stocks as the second quarter earnings season steps into gear.

Shares in easyJet were among the top gainers, up 2.1 per cent, after the budget airline upgraded its full-year guidance and said that profit could jump by as much as 45 per cent in 2018.

At the bottom of the index Smiths Group was down 7 per cent after the engineering company said it expected full-year revenue at its medical unit to drop due to new EU regulation.

Shares in Royal Mail slid 4.5 per cent as brokers cut their price targets for the company following Tuesday's trading update.

More broadly, miners and financial stocks gave the biggest boost to the index.

North America

The S&P 500 rose to its highest in more than five months and the Dow climbed for a fifth session on Wednesday as solid earnings boosted financial and industrial stocks and reinforced expectations for a strong second-quarter reporting season.

Upbeat earnings from railroad CSX Corp and airline United Continental helped lift the S&P 500 industrials index, which gained 1.1 per cent and was among the day’s best-performing sectors.

S&P 500 earnings are now expected to have increased 21.4 per cent in the second quarter, up from an estimate of 20.7 per cent on July 1. Of the 48 companies in the index that have reported so far, 87.5 percent posted earnings above analyst expectations

Oil prices have risen on expectations that demand for the commodity will increase, according to US government data.

 

More from Morningstar

Investing is easy, adjusting behaviour is not

Westpac puts brakes on SMSF property lending

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

 

Morningstar with AAP and Reuters

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 senior editor for Morningstar Australia

© 2021 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 'regulated financial advice' under New Zealand law has 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. For more information, refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Morningstar’s full research reports are the source of any Morningstar Ratings and are available from Morningstar or your adviser. 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