Daily Market Reports | Dec 20 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 +0.2% and S&P500 +0.1%. Healthcare and industrial stocks gained in early trading as energy stocks declined. After officials at the Federal Reserve commented that they expect a three quarter-point rate increase throughout next year (up from two in September), traders are pricing in a ~73% chance of an increase in June 2017.
– Long-dated US treasury yields were lower with the 2-Yr yield down 3bps to 1.23% and 10-Yr yield down ~4bps to 2.55%.
– European markets. European markets were mixed as investors took profits in financials, whilst real estate, utilities and technology companies advanced. The broad Pan-European STOXX 600 index was flat, the German Dax up +0.2% and the UK FTSE up +0.1%. In London, BHP Billiton (BHP) shares fell -1.7% and Rio Tinto (RIO) was down -1.3%.
– Asian markets. Asian markets were slightly down, with the Nikkei flat, Shanghai Composite down -0.2%, KOSPI down -0.2%.
– WTI oil price is currently flat at US$51.90/bbl. Iron ore is -0.3% lower at US$81.22 per tonne. Spot gold was up +0.4% to US$1,139 per ounce.
– Thermal coal decreased -0.4% to US$84.40/tonne.
ASX Market Update
– ASX performance. The ASX 200 closed higher on Monday driven by small gains in multiple sectors, especially Insurers, offset by Consumer Discretionary. Treasurer Scott Morrison announced a drop in this financial year’s projected deficit to $36.5 from $37.1 billion, but the total deficit over the next three years to increase to $10.4 billion.
– Syrah Resources (SYR) shares rebounded +6.4% after a period of underperformance since former MD Tolga Kumova stepped down and on concerns the Company’s ability to translate a deposit into a marketable product. Seven West Media (SWM) shares retracted -8.0% on media reports that its CEO Tim Worner had ‘inappropriate relationship’ with an employee. Sirtex Medical (SRX) shares were down -4.0% on news that it’s investigating share trading by their CEO. Fortescue (FMG) shares were down -4.8% on market expectations that iron ore is expected to fall.
– Australian dollar continues to retract, -0.8% lower to 0.7248 versus the USD.
– Today’s trading. In Australia, the RBA board minutes are released.
www.vested.com.au
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