Market Wrap – 29th June 2018

Market Summary

The Australian market closed slightly higher for the first time in five sessions, after a trading session which opened up relatively choppy on Wednesday and later stabilised throughout the day. The main contributors to gains in the Australian market was the energy sector, the mining sector as well as the banks with the big four gaining as much as 0.85 percent. US equity indices surged throughout the day as the Trump Administration has decided against putting limitations on Chinese Investments for now, however US-China-Europe trade tensions are lurking in the background. Tonight a European Union economic summit kicks off. Brexit is likely to be a talking point with trade tensions also potentially receiving attention. Conversely, the price of oil surged by 3.2 per cent overnight to a three and a half year high of $72.76/barrel.  Today will mark the final trading day for the month and financial year and historically the ASX has managed to add 1 per cent on the last day of the year as investors often square their books.

US markets were up Our market is expected to open higher 

  • AUSTRALIA:
    ASX200  was up 19.5 points or 0.31% to 6,215
    ALL ORDINARIES up 15.3 points or 0.24% to 6,306
    SPI futures contract is up 13 points to 6,185
  • U.S.A:
    DOW  +0.41% to 24,216
    S&P500 +0.61% to 2,716
    NASDAQ +0.78% to 7,504
  • ASIA: 
    HANG SENG  +0.49%
    NIKKEI -0.01%
    SHANGHAI -0.94%
    CSI 300 -1.04%
  • EUROPE: 
    CAC  -0.98%
    DAX -1.41%
    EURO STOXX 50 -0.94%
    FTSE 100 -0.08%
  • COMMODITIES: 
    WTI Crude Oil  +1.35%
    Brent Crude +0.30%
    Gold -0.33%
    Aluminium -0.97%
    Iron Ore -0.25%
    Copper -1.03%
  • BONDS: 
    US 10-year yield  moved to 2.840% from 2.830%
    AUS 10-year yield moved to 2.632% from 2.608%
  • CURRENCIES: 
    AUD  +0.07% to US 0.7347
    US Dollar Index -0.02% to 95.00

Top Performers on ASX200:                                                                                             

  • NIB Holdings (NHF): +5.45%
  • Beach Energy Limited (BPT): +5.29%
  • Independence Group NL (IGO): +3.63%

Bottom Performers on ASX200:

  • Wistech Global Ltd (WTC): -6.32%
  • Afterpay Touch Ltd (APT): -3.91%
  • Altium Ltd (ALU): -3.8%

 

Stock News                                                                                                                      

  • Beach Energy Limited (BPT): +5.29% – Beach Energy Limited has witnessed three days of consecutive gains totalling over 9% after releasing an announcement outlining the completion of their acquisition of Toyota Tsusho’s 5% interest in the Otway Gas Project and 11.25% interest in the BassGas Project.

Economic News                                                                                                               

  • Euro Area Business Climate Indicator: The business climate indicator for the Euro Area fell slightly by 0.05 points to 1.39 in June 2018, in line with market expectations. Managers’ appraisals of their overall and export order books worsened markedly, while their assessments of the past production and the stocks of finished products remained virtually unchanged. By contrast, managers’ production expectations improved substantially, reports Trading Economics.
  • US GDP Growth Rate Data (QoQ): The US economy expanded an annualized 2 percent on quarter in the first quarter of 2018, below 2.2 percent in the second estimate and market expectations of 2.2 percent. Private inventory investment and personal consumption expenditures (PCE) were revised down, the final estimate showed. GDP Growth Rate in the United States averaged 3.21 percent from 1947 until 2018, reaching an all time high of 16.90 percent in the first quarter of 1950 and a record low of -10 percent in the first quarter of 1958, reports Trading Economics.

 

This week we are awaiting the following economic news

 

  • Friday UK Consumer Confidence for June
  • Friday Australian HIA New Home Sales for May
  • Friday Japan Unemployment Rate for May
  • Friday UK Final GDP Growth Rate Data for the First Quarter
  • Friday US Personal Income and Spending for May
  • Friday Baker Hughes Oil Rig Count
  • Friday China NBS Manufacturing PMI for June

Roger Haidar | Research Analyst & Dealing Assistant

Christopher Youssef | Dealing Assistant

Laurence Parker-Brown | Senior Vice President
Level 9, Chifley Tower, 2 Chifley Square, Sydney, NSW 2000
T: +61 2 9955 3151 E: dealingdesk201@kosec.com.au
W: www.kosec.com.au