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Global Market Report - June 5, 2018

Lex Hall  |  05 Jun 2018Text size  Decrease  Increase  |  
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Australia

The Australian share market is set to open lower despite stellar results for US tech stocks, including a Nasdaq record, and the abatement of trade tensions.

At 8.30am (AEST) Australian futures were down 23 points to 6003. The Australian dollar has continued its climb, buying 76.50 US cents.

The benchmark S&P/ASX200 index yesterday closed up 0.59 per cent at 6025.5 points, and the broader All Ordinaries was up, or 0.57 per cent, at 6138.6 points.

The RBA is expected to keep rates on hold at 1.5 per cent when it meets today.
Also out today: AiG performance of services May; ABS releases the March quarter’s balance of payments and its international investment position data.

Asia

Asian stocks also lifted. MSCI's Asia ex-Japan stock index was firmer by 1.22 per cent while Japan's Nikkei index closed up 1.37 per cent to 22,475.94.

Hong Kong stocks followed Asian markets higher, as strong US jobs data offset worries that tariff wars between the US and the rest of the world could retard global economic growth.

The Hang Seng index rose 1.66 per cent, to 30,997.98, while the China Enterprises Index gained 1.9 per cent, to 12,249.58 points. China stocks lifted, aided by a rebound in consumer and real estate shares.

The Shanghai Composite Index rose 0.52 per cent to 3091.19. The blue-chip CSI300 index rose 0.98 per cent to 3807.58.

Europe

European shares extended a recovery on Monday as dealmaking took centre stage after a week of political tension in Italy and Spain as well as friction between the US and its allies over trade policies.

Investors' concerns over trade were overshadowed by very strong US jobs data on Friday, which helped Wall Street to rise for a second day on Monday.
Europe's STOXX 600 gained 0.3 per cent and Germany's DAX 0.37 per cent to 12,770.75.

News about mergers and acquisitions, particularly in the financial sector, drove the biggest moves.

British shares also rose as a flurry of deals lifted investor spirits and helped brush aside fears of a full-blown trade war between the US and some of its closest partners.

The blue chip FTSE 100 index ended 0.51 per cent higher, at 7741.29, amid optimism across trading centres in Europe about the political situation in Italy and Spain.

North America

Wall Street's three major indexes have risen, led by a rally in tech stocks that has pushed the Nasdaq to a record closing high as investors bet on a continuation of strong economic growth, while falling oil prices have weighed on the energy sector.

Apple shares rose to their highest ever due to investor bets on its annual developers conference and Microsoft impressed with an acquisition, pushing the S&P 500 technology index to a record high, while Amazon.com led consumer stocks higher.

Better-than-expected US jobs data for May were still key to investor optimism as traders turned their focus away from recent trade war fears.

The Dow Jones Industrial Average rose 0.72 per cent, to 24,813.69, the S&P 500 gained 0.45 per cent, to 2746.87, and the Nasdaq Composite added 0.69 per cent, to 7606.46, a record closing high.

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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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