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Global Market Report - May 9, 2018

Lex Hall  |  09 May 2018Text size  Decrease  Increase  |  
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Australia

The local share market is expected to open flat after the major US stock indexes erased earlier losses to end the session little changed, while markets priced in Donald Trump’s decision to withdraw from the Iran nuclear deal.
At 7am (AEST) on Wednesday, the Australian share price futures index was up five points, or 0.08 per cent, at 6082 points.
In the US, energy stocks cut earlier losses after Trump said the US would quit the Iran nuclear deal, confirming what many investors had expected.The Australian share market yesterday closed slightly higher ahead of the federal budget and the Iran decision.
The benchmark S&P/ASX200 was up 7.4 points, or 0.12 per cent, at 6091.9 points, while the broader All Ordinaries index was up 7.6 points, or 0.12 per cent, higher at 6183.2 points.
At 8.25am (AEST) on Wednesday, the local currency was worth US74.52c, down from US75.10c on Tuesday.
Out today: fertiliser and explosives maker Incitec Pivot releases its half-year results. Building products supplier CSR releases full-year result.

Asia

Asian shares are higher, helped by tech stocks as generally upbeat earnings overcame weakness in the global smartphone market and concerns about more regulation.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.6 per cent, with information technology shares rising 1.3 per cent. Japan’s Nikkei was 0.2 per cent higher.
Some analysts warn the tech rally could face a short-term correction as valuations soar.

Europe

Dealmaking dominated activity in UK stocks, with gains in Shire and Virgin Money, although the FTSE 100 index held steady after a public holiday and ended flat at 7565.75 points.
A weaker pound had encouraged some earlier gains in the blue chip index, while mid caps closed 0.9 per cent higher and analysts at Accendo Markets said the market would remain supported by sterling’s relative weakness to the dollar.
Meanwhile, M&A activity prompted sizeable moves among individual stocks, with Shire the top FTSE gainer, up 4.6 per cent at 4034.50 pence, after Japan’s Takeda agreed on Tuesday to buy the rare disease specialist for £45.3 billion pounds, raising the amount of cash in its bid to secure a recommendation.
Shire traded below the agreed 4817 pence price, reflecting that the deal would only be completed next year, traders said.

North America

Wall Street cut its losses to end little changed on Tuesday while energy stocks rallied after US President Donald Trump said the US would quit the Iran nuclear deal, confirming what many investors had expected.
Trump said the US would withdraw from a 2015 international agreement designed to deny Tehran the ability to build nuclear weapons, and also reinstate sanctions on Iran.
The S&P energy sector erased earlier losses to end the day up 0.78 per cent as oil prices reduced earlier declines on bets that the sanctions would disrupt global crude supplies.
The decision to leave the agreement with Iran is likely to raise the risk of conflict in the Middle East, upset America’s European allies and disrupt global oil supplies. Trump said he was willing to negotiate a new deal with Iran.
The Dow closed 2.89 points, or 0.01 per cent higher at 24,360.21, while the S&P 500 was down 0.71 points, or 0.03 per cent, at 2671.92. The Nasdaq Composite added 1.69 points, or 0.02 per cent, to 7266.90.

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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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