Daily Market Reports | Dec 21 2016
Greg Peel is on holidays. In the final week before the Christmas break, FNArena offers an alternative Overnight Report, produced by Vested Equities.
Global Markets Update
– US markets. US closed higher overnight – Dow Jones up +0.5% and S&P500 up +0.4%. Caterpillar Inc. and Nike Inc. led advances in the bluechip space, while bank shares resumed a rally, adding 1.1%. In US economic data, the Philadelphia Fed service index increased to 20.9 (from 10.6) in December.
– Long-dated US treasury yields were mostly unchanged from yesterday, with the 2-Yr yield down 2bps to 1.21% and 10-Yr yield unchanged at 2.55%.
– European markets. European markets moved higher overnight, with investors shrugging off the terror attack in Berlin. The Stoxx Europe 600 Index was up +0.5% to close at the highest level in 2016, as analysts remain upbeat about profit growth for next year, expecting earnings to grow by 12.5%. The German Dax was up +0.3% and the UK FTSE up +0.4%. In London, BHP Billiton (BHP) shares were up +0.9% and Rio Tinto (RIO) was up +1.4%.
– Asian markets. Asian markets were mostly higher, with the Nikkei up +0.5%, Shanghai Composite down -0.5%, KOSPI up +0.2%. Bank of Japan kept its monetary policy steady – upgrading its assessment of the economy and keeping its asset purchase programs unchanged.
– WTI oil price is currently up +0.5% at US$53.55/bbl. Iron ore is -2.0% lower at US$79.62 per tonne. Spot gold down -0.5% to US$1,132 per ounce. Thermal coal is up +3.6% to US$87.45/tonne.
ASX Market Update
– ASX performance. The ASX 200 closed +0.5% higher on Tuesday, driven by consumer discretionary (+1.2%), utilities (+1.3%) and consumer staples (+1.1%) stocks. Energy (-0.4%) and diversified financials (-0.4%) were the main laggards.
– Syrah Resources (SYR) shares lost most of the gains registered in the previous day’s trading, dropping by -6.3%. Seven West Media (SWM) shares rebounded by +6.0%, after falling -8.0% on Monday on media reports that its CEO Tim Worner had ‘inappropriate relationship’ with an employee.
– Australian dollar is currently +0.2% to 0.7259 versus the USD.
– Today’s trading. In Australia, no major economic news is out.
Rudi will host Your Money, Your Call Equities tonight on Sky Business, 7.30-9pm.
www.vested.com.au
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