Wednesday: 22nd March 2017
Each Market In Focus
The Australian market looks set to open sharply lower after Wall Street falls more than one per cent amid concern US President Donald Trump will struggle to deliver promised tax and healthcare reform.
At 8.00 AEDT on Wednesday, the share price futures index was down 48 points, or 0.8 per cent, at 5,5710.
60 Day Low. This is a list of codes that made a new 60 day LOW in the past 2 days. We use the 60 day low as this would infer that a breakdown in price has occurred after a period of consolidation OR the stock is declining each day if the code shows repeatedly. The filter uses an above 50 cent price filter, and the codes in Blue are on our watch list. ( source Metastock)
Scans Powered by Metastock. Click here for more information
Wall Street has fallen sharply as investors fear President Donald Trump will struggle to deliver promised tax cuts that propelled the market to record highs in recent months.
The S&P 500 and Dow Jones Industrial Average lost more than one per cent for the first time since October, while the Nasdaq fell more than 1.5 per cent.
The S&P financial index added to losses suffered since the Federal Reserve last week raised interest rates by 25 basis points and signalled it would remain on a gradual pace of hikes, a less aggressive stance than some investors expected.
Banks benefit from higher interest rates and their stocks are sensitive to changes in expectations of how quickly the Fed will change rates.
The Dow Jones Industrial Average lost 1.14 per cent to 20,668.01 points, while the S&P 500 fell 1.24 per cent to 2,344.02.
The Nasdaq Composite dropped 1.83 per cent to 5,793.82.
The current selloff in commodity markets is expected to continue on Wednesday, as an easing of supply-side disruptions prompts investors to lighten long positions built up over the past month. Signs that US PresidentTrump’s pro-growth policies might struggle to be implemented are also weighing on sentiment. Copper prices fell to a one-week low of US$2.619 a pound on Tuesday on signs that supply disruptions in Chile and Indonesia could be drawing to a close.
- US crude futures separately fell to a four-month low of US$47.34/bbl, as global inventories remain stubbornly high and US production accelerates.
Here’s some bad news for Australian dollar bulls: technical charts suggest its outperformance versus the US dollar may have run its course for now.
The AUD/USD is at 0.7689 early in Asia after its push toward 0.7750 faltered during trading in US hours.
- European shares ended lower on Tuesday, reversing earlier gains as jitters about US President Donald Trump’s ability to push through reforms overshadowed soothing news from the French presidential debate.
- The pan-European STOXX 600 index ended down 0.5 per cent. The index had earlier gained as much as 0.4 per cent to hit a 15-month high.
Prospects of tax cuts and big fiscal stimulus in the US have helped European equities stage a strong rally over the past few months, adding to strong economic data in the region and an upbeat earnings season.
The banks were strong early gainers after French election worries were soothed by centrist Emmanuel Macron cementing his position as frontrunner in the first televised presidential debate on Monday.
Germany’s DAX lost 0.75 per cent to 11,962.13
London’s FTSE 100 fell 0.69 per cent to 7,378.34.
- Asian shares hit 15-month highs on Tuesday, except Tokyo which which fell more than a third of a per cent.
- MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent to 15-month highs, with Hong Kong’s Hang Seng scaling one-and-a-half-year highs.
- Japan’s Nikkei dropped 0.34 per cent, weighed by financial stocks, which were hurt by lower US yields and exporter stocks, which fell on the yen’s gains against the US dollar.
- Hong Kong stocks climbed to a near 20-month high, bolstered by continued inflows from Chinese investors and signs of global economic recovery.
- The benchmark Hang Seng index rose for a fourth straight day, adding 0.37 per cent to end at 24,593.12, its highest close since July 31, 2015.
- The Hong Kong China Enterprises Index gained 0.6 per cent, to 10,644.15.
- China stocks closed slightly higher, but investors’ risk appetite was restrained amid growing signs of tighter liquidity in the banking system.
- The blue-chip CSI300 index rose 0.5 per cent, to 3,466.35 points, while the Shanghai Composite Index added 0.37 per cent to 3,261.61 points.
- The S&P/NZX 50 Index rose 28.50 points, or 0.4 per cent, to 7,085.55. AAP cdh
Important News Events For Today
“The roots of education are bitter, but the fruit is sweet.” – Aristotle.
*Now you know everything.*