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Global Market Report - May 28, 2018

Lex Hall  |  28 May 2018Text size  Decrease  Increase  |  
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Australia

The local share market is set to open weaker with a fall in the price of oil and other resources.
At 8.45am (AEST) the SPI futures index was pointing to a fall of 30 points in early trade.
The benchmark S&P/ASX200 was down 0.07 per cent on Friday, to 6032.8 points, while the broader All Ordinaries index fell 0.05 per cent, to 6140.9 points.
Monday is a bank holiday in the UK and Memorial Day in the US. On Friday, the market-moving US jobs data report will be released.

Asia

Asian share have recovered earlier losses as Pyongyang's measured response to US President Donald Trump's announcement to call off a key summit with North Korea healed market sentiment, although investors remained cautious.
North Korean Vice Foreign Minister Kim Kye Gwan said Pyongyang still hoped for a "Trump formula" to resolve the standoff over its nuclear weapons program, noting that the country was open to resolving issues with the US.
MSCI's broadest index of Asia-Pacific shares outside Japan managed to eke out 0.1 per cent gains, while South Korea's Kospi pared much of its earlier loss of 0.9 per cent to last trade down 0.2 per cent.
Japan's Nikkei was up 0.1 per cent.

Europe

A slump in oil prices hit British majors on Friday, limiting the gains of the FTSE 100 benchmark index while Kingfisher shone after Australia’s Wesfarmers said it would sell rival UK home improvement chain Homebase.
The blue chip FTSE 100 ended the day up 0.18 per cent at 7730.28 points but posted a weekly loss of 0.6 per cent, breaking an eight-week run of gains.
France's CAC fell 0.11 per cent and Germany's DAX was up 0.65 per cent
Index heavyweights BP and Royal Dutch Shell lost two per cent and 1.5 per cent respectively while Tullow Oil fell 4.1 per cent.
Confirmation that Britain's economy barely grew during the first quarter of 2018 added pressure to the pound on a five-month low as worries over Brexit continued to take their toll.
A lower sterling typically provides an accounting boost to UK companies who sell products or services in foreign currencies.
Kingfisher, Europe’s second largest home improvement retailer, was a top gainer, up 3.4 per cent, as Wesfarmers’ sale of Homebase is expected to ease competition in the DIY sector.

North America

The S&P 500 and the Dow eased on Friday after a steep drop in oil prices pressured energy stocks, but losses were limited by gains in chipmakers and retail stocks.
US crude fell 4 per cent to settle at $US67.88 a barrel after Saudi Arabia and Russia said they were ready to ease supply curbs that have pushed prices to their highest since 2014.
The S&P energy index slid 2.6 per cent and registered its biggest daily percentage drop since early February, while Chevron fell 3.5 per cent and Exxon Mobil fell 1.9 per cent and were among the biggest drags on the Dow and S&P 500.
Stock markets this week also have been roiled by trade tensions with China, a US threat of imposing tariffs on imported cars and uncertainty over a US-North Korea summit.
The Dow fell 58.67 points, or 0.24 per cent, to 24,753.09, the S&P 500 lost 6.43 points, or 0.24 per cent, to 2721.33 and the Nasdaq Composite added 9.43 points, or 0.13 per cent, to 7433.85.

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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 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.

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