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Global Market Report - June 25, 2018

Lex Hall  |  25 Jun 2018Text size  Decrease  Increase  |  
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Australia

Strong gains on global markets and the Dow's snapping of an eight-session fall have set up the Australian sharemarket for a gain of about a fifth of a per cent.

At 8.30am (AEST) the Australian futures index was up 13 points to 6180. The Australian dollar is buying 74.40 US cents.

In the US, the Dow Jones Industrial Average broke its eight-session losing streak as it and the S&P 500 got a boost from energy stocks, but losses in the technology space kept the Nasdaq in check.

Oil prices rose sharply after OPEC agreed to only a modest increase in output, well below some of the figures that had been discussed ahead of the meeting.

On Friday last week the Australian sharemarket was hovering around a decade-high despite a slight retreat on Friday after a week of strong gains. The benchmark S&P/ASX200 index closed down 0.11 per cent at 6,225.2 points, bringing its weekly gain to more than 2 per cent, while the broader All Ordinaries fell 0.17 per cent, to 6322.1 points.

Out today: Treasurer Scott Morrison to give the opening address at the CEDA State of the Nation function in Canberra.

CoreLogic is to release its capital city house price survey for the week just ended.

Metcash is slated to post full-year results.

Asia

Around Asia, MSCI's Asia ex-Japan stock index was firmer by 0.41 per cent while Japan's Nikkei index closed down 0.8 per cent, at 22,516.83.

Hong Kong's benchmark stock index ended slightly higher on Friday, but posted its biggest weekly loss in three months amid escalating trade tensions between Beijing and Washington.
The Hang Seng index rose 0.2 per cent to 29,338.70, while the China Enterprises Index lost 0.2 per cent to 11,339.87 points.

For the week, the Hang Seng lost 3.2 per cent, its worse weekly performance since late March.

China stocks managed to end higher on Friday, but posted their worst weekly loss since early February, as lingering concerns over a potential full-blown trade war between China and the US dampened investor sentiment.

The blue-chip CSI300 index closed up 0.45 per cent at 3608.91, while the Shanghai Composite Index gained 0.5 per cent to 2889.75 points after dropping to a two-year low in early trade.

For the week, SSEC tumbled 4.4 per cent, while CSI300 slid 3.8 per cent, both logging their worst week since early February.

There were few signs of easing in US-China trade tensions.

Europe

Britain's top share index rebounded on Friday to post a weekly gain as oil majors got a boost from OPEC's boost, helping to soothe fears over a trade war and the revived prospect of an interest rate hike in August.

The FTSE 100 ended the day up 1.7 per cent, to 7682.27, a rise which allowed it to finish on a weekly gain of 0.6 per cent and avoid a fifth straight week of losses.

Heavyweights BP and Royal Dutch Shell rose 3 per cent and 3.3 per cent respectively as oil prices jumped more than 4 per cent after major producers agreed to modest crude output increases to compensate for losses in production at a time of rising global demand.
The rise in oil prices might however only give a temporary respite to investors.

Better-than-expected euro zone economic data and energy stocks galvanised by the OPEC announcement helped drive a bounce in European shares at the end of a tumultuous week marred by trade war worries.

The pan-European STOXX 600 ended the day up 1.1 per cent but recorded a 1.1 per cent fall on the week as fears of rising global protectionism sank in, particularly for the autos sector.

Shares in European carmakers and Germany's DAX briefly tanked in afternoon trading after US president Donald Trump threatened a 20 per cent tariff on car imports from the European Union.

German carmakers Daimler, Volkswagen and BMW, which are heavily reliant on US car sales, ended the day down 0.3 per cent, 1.1 per cent and 0.2 per cent respectively.
The Dax closed 0.54 per cent higher at 12,579.72.

North America

The energy sector was the biggest gainer of the benchmark S&P 500 index, rising 2.2 per cent, while the technology sector was the weakest with a 0.4 per cent drop.

The Dow Jones Industrial Average rose 118.98 points, or 0.49 per cent, to 24,580.68, the S&P 500 gained 5.08 points, or 0.18 per cent, to 2,754.84 and the Nasdaq Composite dropped 20.14 points, or 0.26 per cent, to 7,692.82.

 

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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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