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Global Market Report - July 2, 2018

Lex Hall  |  02 Jul 2018Text size  Decrease  Increase  |  
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Australia

Modest gains on Wall Street have paved the way for the Australian sharemarket to start the September quarter on a positive note.

The Australian futures index was up 23 points at 6171, at 8.30am (AEST). The Australian dollar is buying 73.99 US cents.

Oil prices reached another multiyear high, boosted by declining crude inventories and building concerns over supply disruptions.

The Australian share market ended the financial year on Friday on a sour note after a late afternoon sell-off, as energy stocks fell despite soaring oil prices and healthcare and financial stocks retreated.

The benchmark S&P/ASX200 plunged in the last half-hour of trade to close down 0.33 per cent, at 6194.6 points on Friday, while the broader All Ordinaries index lost 0.26 per cent at 6289.7 points.

CoreLogic figures show further weakness in house prices, while ABS data tomorrow might show a bounce in building approvals. Retail trade figures from the ABS on Wednesday will probably only show modest growth.

AiG manufacturing index June, CoreLogic dwelling prices June, MI inflation June, ANZ job ads May. The RBA will meet tomorrow for its first policy meeting of the month.

Asia

Hong Kong stocks slid to nearly a seven-month low on Wednesday as a sharp fall in the yuan added to fears about China's economic growth amid escalating US-China trade tensions.

The Hang Seng index fell 1.8 per cent, to 28,356.26, while the China Enterprises Index lost 2.2 per cent, to 10,879.17 points.

China's yuan fell below a psychologically key 6.6 per US dollar level. The currency posted its weakest official local close since December 19, last year.

Japanese shares ended Friday on modest gains as Asian equities rebounded from nine-month lows, with the yen's weakening against the dollar also providing support.

The Nikkei 225 share average rose 0.15 per cent to 22,304.51 after dropping to as low as 22,145.48.

Europe

European shares rebounded on Friday as China eased foreign investment limits.

The blue-chip FTSE 100 Index is up 21 points, or 0.28 per cent, to 7636.

The pan-European STOXX 600 was up 0.8 per cent at its close, while Germany's trade-sensitive DAX jumped 1.1 per cent.

The index fell 0.8 per cent this month amid trade war fears. However, that still left it with a 2.4 per cent gain in the second quarter.

North America

US stocks crept up as investors took advantage of a pause in trade tensions to boost major indexes’ gains for the second quarter.

The Dow Jones Industrial Average rose as much as 293 points earlier in the session before paring its gain in the final hour of trading. Energy shares rose alongside a spike in oil prices, while strong sales pushed shoe giant Nike to a share price record, pulling the S&P 500 and Dow industrials higher.

The Dow Jones Industrial Average rose 0.2 per cent to 24,271. The S&P 500 rose less than 0.1 per cent, while the Nasdaq Composite gained 0.1 per cent.

 

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Morningstar with AAP

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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