• need2know: Slow grind higher

    Date: 2019.08.16 | Category: 南京夜网 | Tags:

    Local shares, in line with their overseas counterparts, appear set to grind higher as investors this week await minutes from the latest central bank meetings in Australia, the UK and the US.
    Nanjing Night Net

    What you need2know:

    • SPI futures up 6 pts at 5475.

    • AUD at 87.64 US cents, 102.13 Japanese yen, 69.91 Euro cents and 55.86 British pence

    • On Wall St, S&P 500 flat, Dow -0.1%, Nasdaq +0.2%

    • In Europe, Euro Stoxx 50 +0.1%, FTSE +0.3%, CAC +0.4%, DAX flat

    • Spot gold jumps 2.3% to $US1188.75 an ounce

    • Brent oil surges 2.5% to $US79.60 per barrel

    • Iron ore slips 0.7% to $US75.47 per metric tonne

    What’s on today

    Australia motor vehicle sales; New Zealand performance services index, retail sales ex inflation; Japan GDP; US Empire manufacturing index, industrial production.

    Stocks to watch

    Coal miners, iron ore producers, banks.

    RBC Capital Markets has a sector perform on APA Group and a price target of $7.75 a share as it reviews the investment case leading into a potential BG LNG pipeline acquisition.

    Deutsche Bank upgraded Monadelphous to a “hold” on valuation grounds and has a target price of $11.43 a share on the mining services group.

    Currencies

    The RBA’s latest meeting minutes this week may prove another non-event for the currency, given policy expectations remain fairly well-anchored. A return to the recent lows near 0.8550 remains on the cards over the near-term, yet the driving force is more likely to stem from the US Dollar side of the equation, says David de Ferranti, market analyst at FXCM.

    The dollar index, which early on Friday touched a four-year high of 88.267 after a US retail sales report bolstered views of a strengthening US economy, was off 0.20 per cent at 87.497

    St Louis Fed chief James Bullard is sticking to his forecast of raising interest rates in the first quarter of next year, with rebounding inflation, strong jobs data and lower oil prices propelling a strengthening US economy.

    Commodities

    Brent crude jumped on Friday for its biggest daily gain in three weeks as support emerged a day after prices crashed to four-year lows below $US80, but analysts were sceptical the rebound would continue, citing concerns over oversupply.

    Hedge fund Paulson & Co maintained its stake in the world’s biggest gold-backed exchange-traded fund, SPDR Gold Trust, for a fourth consecutive quarter in Q3, when bullion prices fell on an improving US economic outlook.

    On the outlook for iron ore, RBC Capital Markets says: “We now forecast a 2015 average price of US$85/t, down from US$100/t. We hold prices steady into 2016 at US$85/t, down from prior forecast of US$95/t.”

    United States

    US stocks posted a fourth straight week of increases but ended Friday little changed as losses in healthcare shares offset gains in energy. For the week, the Dow and S&P 500 rose 0.4 per cent and the Nasdaq climbed 1.2 per cent.

    Retail sales, which account for about one-third of consumer spending, rose 0.3 per cent in October, the Commerce Department said on Friday. The gain was larger than analysts expected, and would have been higher but for a 1.5 per cent drop in receipts at gasoline retailers.

    Shares of Virgin America, a low-cost airline partly owned by Richard Branson, soared more than 30 per cent in their market debut, underscoring the buoyant mood in an industry that is emerging from a long spell of turbulence.

    Europe

    Sluggish economic growth in eurozone heavyweights Germany and France has weighed on the European single currency and the region’s stock markets. Nevertheless equities ended in positive territory on Friday.

    Official data showed France and Germany narrowly avoided a new recession in the third quarter, while the broader 18-nation eurozone also faces anaemic growth with just a 0.2 per cent expansion. Eurozone inflation came in at a low 0.4 per cent as expected.

    A controversial derivatives trade that has dogged Monte dei Paschi di Siena for years reduced its core capital by €411 million in a regulatory health-check of European banks, a document from the Italian lender showed.

    What happened on Friday

    A small rise in the Australian sharemarket on Friday wasn’t enough to prevent the market ending four straight weeks of gains, as energy, mining and banking stocks were sold off.

    On Friday, the ASX 200 ended a four-day losing streak, adding 11.6 points, or 0.2 per cent, while the All Ordinaries gained 10.3 points, or 0.2 per cent.

    Over the week, the benchmark S&P/ASX 200 fell 94.8 points, or 1.7 per cent, to 5454.3. The broader All Ordinaries dipped 88.3 points, or 1.6 per cent to 5433.8.

    This story Administrator ready to work first appeared on Nanjing Night Net.