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 - June 8, 2018

Lex Hall  |  08 Jun 2018Text size  Decrease  Increase  |  
Email to Friend

Australia

The local share market is set to open lower despite a rise in oil prices as US technology stocks break a streak of highs.

At 8.30am (AEST) the Australian futures index was down eight point to 6054. The Australian dollar is buying 76.24 US cents.

Australian shares have closed higher yesterday, with broad-based gains led by the miners and supported by the energy and financial sectors. The benchmark S&P/ASX200 index rose 0.54 per cent, to 6057.3 points, while the broader All Ordinaries rose 0.52 per cent, to 6169.4 points.

Rio Tinto has signed an agreement to form a joint venture with Minmetals to explore mineral deposits in China.

Crude prices have risen as the market refocused on geopolitical risks to supply in Iran and Venezuela ahead of a meeting of major producers later this month.

Prices have come under pressure in recent sessions amid signs the Organisation of the Petroleum Exporting Countries and its allies could move to ramp up production sooner than planned, with some investors anxious leading up to OPEC’s June 22 meeting.

Asia

Asian stocks were mixed with Japan and Hong Kong lifting but China’s key indexes dropping.
MSCI’s Asia ex-Japan stock index was firmer by 0.54 per cent while Japan’s Nikkei index closed up 0.87 per cent at 22,823.26.

Hong Kong stocks were encouraged by signs of progress in the Sino-US trade talks, easing fears of a trade war, with the Hang Seng up 0.81 per cent, at 31,512.63.
The China Enterprises Index gained 1.0 per cent, to 12,407.80 points.

China's Commerce Ministry on Thursday said the country did not want an escalation of trade frictions with the United States, and that some specific progress had been made in the latest round of talks that concluded over the weekend.

China stocks slipped as consumer and healthcare firms took a breather after recent gains.
The blue-chip CSI300 index closed 0.17 per cent down at 3831.01 while the Shanghai Composite Index lost 0.18 per cent to 3109.50 points.

Europe

Britain's top share index dipped on Thursday following a delayed open as stocks trading ex-dividend outweighed a rise among banks and big oil, while a stronger pound added pressure.
The blue-chip FTSE 100 index and mid-caps both closed down 0.1 per cent. Trading was delayed for an hour, which exchange operator LSE blamed on technical issues.

Falls among stocks going ex-dividend such as Vodafone and Sainsbury's capped any gains for the UK index, which underperformed continental European equities.

A rising pound also put pressure on foreign-earning stocks such as big consumer staples firms. European shares were also lower,with luxury stocks among the leading losers after an underwhelming presentation from Gucci owner Kering.

Stronger energy stocks and gains among banks on expectations that the European Central Bank may soon start to wind down its stimulus helped the pan-European STOXX 600 limit its decline to 0.2 per cent.

Kering, which hit a fresh record high earlier this week, fell more than 4 per cent.
Gucci, the biggest earnings driver at the French group, said it expected sales to grow at twice the pace of the luxury market in coming years and for revenue to eventually reach 10 billion euros.

These goals failed to impress investors with traders citing worries that margins and growth in the sector may have peaked, including in the key Chinese market.

North America

The S&P and Nasdaq have fallen as the technology sector snaps a rally while investors turn to safer bets, keep an eye on global trade tensions and wait for US and European central bank meetings.

US Treasury prices rose on Thursday, as trade disputes between the US and its major trade partners were in focus ahead of the Group of Seven summit.

Investors worried about a showdown at the meeting, set for Friday and Saturday in Charlevoix, Quebec, after US president Donald Trump signalled that he would stick to his tough stance on trade after imposing tariffs on steel and aluminium imports from Canada, Mexico and the European Union last week.

Canada and Mexico have retaliated against a range of US exports and the EU has promised to do so as well.

The Federal Reserve is widely expected to announce an interest rate hike on Wednesday but investors are looking for clues on whether the US central bank will raise rates a fourth time in 2018.

The Dow Jones Industrial Average rose 0.38 per cent, to 25,241.41, the S&P 500 lost 0.07 per cent, to 2770.37. The Nasdaq Composite dropped 0.7 per cent, to 7635.07 after registering three straight closing record highs in the previous sessions.

 

More from Morningstar

Commodity exporters boost growth

What is the best way to invest in global equities?

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

 

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.

Email To Friend