The Overnight Report: US Markets Close Flat

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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 largely closed flat on Friday – Dow Jones flat and S&P500 -0.2%. US housing starts were down -18.7% in November versus an expected lower decline of -12.8% and US building permits decreased -4.1% in November versus an expected increase of +3.3%.

– Long-dated US treasury yields were unchanged on Friday with the 2-Yr yield at 1.26% and 10-Yr yield at 2.60%.

– European markets. European markets were higher, driven by energy stocks, and M&A news in healthcare with Actelion (ATLN), up +5.8% on news that Sanofi (SAN) will look to take over the Company. The broad Pan-European STOXX 600 index was up +0.3%, the German Dax up +0.3% and the UK FTSE up +0.2%. In London, BHP Billiton ((BHP)) shares fell -4.6% and Rio Tinto ((RIO)) was up +0.1%.

– Asian markets. Asian markets were higher on Friday, with the Nikkei slightly up +0.7%, Shanghai Composite up +0.2%, KOSPI up +0.3.

– WTI oil price is currently up +2.0% at US$51.90/bbl. Iron ore is flat at US$81.49 per tonne. Spot gold was up +0.6% to US$1,135 per ounce. Thermal coal decreased -2.6% to US$86.50/tonne.

ASX Market Update

– ASX performance. The ASX 200 closed lower -0.1% on Friday driven by losses from Metals & Mining, down -1.2% and Telcos, down -0.8% offset by Consumer Discretionary, up +0.7%.

– Australian dollar is currently lower by -0.8% to 0.7300 versus the USD.

– Orocobre ((ORO)) shares gained +9.1%, on positive scoping studies confirming 17.5ktpa lithium carbonate expansion. Orora ((ORE)) shares gained +5.7% after announcing it will buy Register Print for $44m. Incitec Pivot ((IPL)) gained +4.4% after holding its AGM where the Company highlighted it was cautiously optimistic for 2017 and made positive comments on improved ammonia pricing in 2017. Mayne Pharma ((MYX)) shares were down -8.8% as it was named in a suit filed by 20 US states alleging the drug maker conspired to fix prices for generic medicines.

– Gold miners in Resolute Mining ((RSG)), Evolution ((EVN)), St Barbara ((SBM)), and Saracen Mineral ((SAR)) continue to decline as the US Fed Reserve continue to signal steeper rate increases throughout 2017.

– Today's trading. In Australia, MYEFO Budget Deficit 2016-17 is released.

www.vested.com.au

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