Daily Market Reports | Jul 06 2017
Greg Peel shall return on Monday. In the meantime, the Overnight Report is provided by Vested Equities.
GLOBAL MARKETS UPDATE
US markets. US markets closed largely flat in its first day of trading following its 4th of July celebrations and whilst the market digest the meeting minutes from the Federal Reserve’s last policy meeting (June13-14) – the Dow Jones flat and S&P500 up +0.1%.
According to meeting minutes, members of the Federal Reserve policy committee was unable to reach an agreement on when to commence reduction in its massive balance sheet. Whilst the UN held an emergency meeting, the US confirmed North Korea’s July 4 missile launch was its first intercontinental ballistic missile. US May Factor Goods Orders dropped 0.8% versus an expected -0.5%.
Long-dated US treasury yields were lower with the 2-yr down 1bps to 1.40% and 10-yr at 2.32%.
European markets. European equity markets recovered slightly following a week of losses with Stoxx Europe 600 Index up +0.2%, the UK FTSE up +0.1% and German DAX up +0.1%.
Asian markets. Asian markets were strong across multiple markets overnight with the Nikkei up +0.2%, KOSPI up +0.3%, Hang Seng up +0.5% and Shanghai Composite up 0.8%.
WTI oil price saw declines of -3.1% to US$45.61/bbl on expectations that Russia will oppose further cuts at OPEC’s ministerial meeting in late July. Iron ore was up +0.1% to US$63.28 per tonne. Spot gold is flat at US$1,227 per ounce.
ASX Market Update
ASX performance. The ASX200 declined -0.4% yesterday’s close, as defensive sectors in Real Estate, Utilities and Healthcare led declines, partially offset by Insurers and stocks in Metals & Mining.
Flight Centre Travel (FLT) shares were up +10.4% after the Company said it expects its FY profit to be at the top of the revised target range, underpinned by improvements in Australian & NZ in 2H and strong profits in US and UK. Shares in Syrah Resources (SYR) jumped +7.8% after highlighting its Balama graphite project is on schedule for first production in August. Vocus (VOC) shares were up +2.1% on announcing it gave KKR access to conduct due diligence after proposal. Sonic Healthcare (SHL) shares declined -3.9% on broker downgrade to recommendations.
Today’s trading. In Australia, data on the trade balance is released. Chinese data on foreign reserves are announced, whilst in the US, data on PMI, and unemployment is released.
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