Daily Market Reports | Jul 07 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 lower with the Dow Jones -0.7% and S&P500 -0.9% lower on weaker healthcare and real estate and technology stocks. In economic news, US companies are adding fewer workers to US payrolls in June with private payrolls increasing by 158k versus estimates of 188k and after a revised 230k increase in May.
• Long-dated US treasury yields were lower with the 2-yr down 1bps to 1.39% and 10-yr at 2.36%.
• European markets. European equity markets dropped as Stoxx Europe 600 Index saw a -0.7% decline, UK FTSE was down -0.4% and German DAX was -0.6% lower, despite strong gains in European banks (amid speculation of higher interest rates). Yields on German 10-year bunds jumped 9bps to 0.56%, which is consistent across Europe off data on French debt auction showing lower demand for French 30-year debt.
• Asian markets. Asian markets were generally weaker overnight as investors studied the US FOMC meeting minutes, with the Nikkei down -0.4%, KOSPI flat, Hang Seng -0.2% lower and Shanghai Composite up +0.2%. Fosun International (656) reversed declines of -4.5% in Hong Kong, after clarifying speculation over the Chairman’s whereabouts and said operations remain on track. Singapore’s Noble Group Ltd (NOBL) jumped 32% over speculation that an investor is building a stake.
• WTI oil price saw a gain of +0.4% to US$45.33/bbl. Iron ore was down -2.1% to US$61.96 per tonne. Spot gold is flat at US$1,225 per ounce.
ASX Market Update
• ASX performance. The ASX200 slid yesterday to close -0.1% lower. Financials led the declines despite stocks in the Utilities sector advancing.
• Shares in Syrah Resources (SYR) climbed another +8.6% (after jumping +7.8% the prior day) as its Balama graphite project remains on schedule for first production in August. Galaxy Resources (GXY) shares increased +7.5% as the Company’s Mt Cattlin lithium mine exceeds target production in June. Aconex (ACX) shares was +5.3% higher, the most since June 13 on little news flow. Retail Food Group (RFG) shares dropped -4.0% on reports of its short interest in the stock reaches 3-year high. Coca-Cola Amatil (CCL) shares were -3.2% lower on reports Domino’s Pizza intends on shifting its beverage volume for Australian stores from CCL to Pepsi/Schweppes as of September.
• Today’s trading. In Australia, no major economic data points are released.
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