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Overseas Market Report

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Overseas Market Report - International Markets Roundup

Thursday 24 May 2018 | Close

NEW YORK [Morningstar with AAP]: US stocks mostly eased on Thursday after President Donald Trump cancelled a planned summit with North Korea's Kim Jong Un and ordered a probe of auto imports, while gains in Netflix pushed its market value to a record.

Thursday 24 May 2018 | Close

Foreign Equities Close Change %Change
Dow Jones (US) 24812 -75 -0.30
S&P 500 2728 -6 -0.20
NASDAQ 7424 -2 -0.02
FTSE 100 Index 7717 -72 -0.92
DAX 30 12855 -122 -0.94
CAC 40 5548 -17 -0.31
Nikkei 225 (Japan) 22437 -253 -1.11
HKSE 30760 95 0.31
SSE Composite Index 3155 -14 -0.45
NZ 50 8591 38 0.44

Thursday 24 May 2018 | Close

Commodities US$ Close Change %Change
Aluminium /t 2280 18 0.81
Copper /t 6858 16 0.24
Nickel /t 14843 251 1.72
Gold /oz 1305 1 0.06
Silver /oz 16.6 0.2 1.22
Oil - West Texas crude /bbl 70.7 -0.4 -0.53
Lead /t 2488 19 0.77
Zinc /t 3036 11 0.36

Thursday 24 May 2018 | Close

Currency Close Pts Change % Change
$A vs $US 0.7577 0.0011 0.14
$A vs GBP 0.5659 0.0002 0.04
$A vs YEN 82.73 -0.40 -0.48
$A vs EUR 0.6463 0.0002 0.03
$A vs $NZ 1.0937 0.0021 0.19
$US vs Euro 0.8531 -0.0009 -0.10
$US vs UK 0.7471 -0.0006 -0.08
$US vs CHF 0.9905 -0.0032 -0.32

NEW YORK [Morningstar with AAP]: US stocks mostly eased on Thursday after President Donald Trump cancelled a planned summit with North Korea's Kim Jong Un and ordered a probe of auto imports, while gains in Netflix pushed its market value to a record.

The auto probe, ordered on Wednesday, added to worries of another potential trade conflict when tensions with China simmered.

Early on Thursday, Trump cancelled the June 12 meeting citing Pyongyang's "open hostility," even after North Korea followed through on a pledge to blow up tunnels at its nuclear test site.

Market participants said the sharp drop after the summit was cancelled was a knee-jerk reaction.

"People were genuinely pleased that it was going to happen," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.

"And I still wouldn't be surprised to see a reversal of this reversal sometime in the next few weeks as each side sits down and thinks about what's really in its best interest."

A decline in energy shares following lower oil prices also weighed on the market, though some of the weakness was offset by Netflix. The S&P energy index was down 1.7 per cent.

Netflix's stock market value ballooned to a record $US153 billion ($A201.9 million) and eclipsed Walt Disney Co for the first time, making it the world's most valuable entertainment company. Netflix shares were up 1.9 per cent, helping the Nasdaq and S&P 500.

At the close of trade, the Dow Jones Industrial Average was down 75.05 points, or 0.3 per cent, to 24,811.76, the S&P 500 lost 5.53 points, or 0.2 per cent, to 2,727.76 and the Nasdaq Composite added 1.53 points, or 0.1 per cent, to 7,424.43.

Earlier in the session the blue chip Dow touched a two-week low.

LONDON: President Donald Trump's decision to cancel a summit with North Korean leader Kim Jong Un weighed on British shares in afternoon trading, while gains in sterling prompted by better retail sales data also bruised the internationally-exposed FTSE 100.

The blue chip index closed down 0.92 per cent at 7,716.74 points as global markets took a hit when Trump announced he had called off the June 12 summit "based on the tremendous anger and open hostility" from Pyongyang.

"Market reaction betrayed surprise," said Ken Odeluga, a market analyst at City Index. "Session lows were seen almost immediately across Wall Street, Frankfurt, London (and) Treasury yields, whilst spot gold spiked to an eight-session high."

A surprise fall in British inflation pushed sterling lower against the dollar, adding headwind to companies whose revenues are in foreign currencies.

On the European mainland, German carmakers Daimler, BMW and Volkswagen dropped 1.7 to 2.8 per cent.

Germany's benchmark DAX index fell 0.94 per cent and Europe's autos sector was the worst-performing, losing 1.8 per cent.

TOKYO: Asian shares fell on Thursday after the US government launched a national security probe into car imports that could lead to new tariffs, and President Donald Trump's comments suggested setbacks in US-China trade talks.

MSCI's broadest index of Asia-Pacific shares outside Japan was about 0.1 per cent higher, but Japan's Nikkei stock index fell 1.1 per cent as auto shares slumped. South Korea's KOSPI lost 0.24 per cent.

A broad MSCI index of car and car parts companies fell 1.1 per cent. Tokyo's SE TOPIX transport equipment index lost three per cent.

The US Commerce Department said on Wednesday that it would launch a national security investigation into car and truck imports under Section 232 of the Trade Expansion Act of 1962, a move that could lead to tariffs like those imposed on steel and aluminium in March.

WELLINGTON: On Tuesday, New Zealand's S&P/NZX 50 index rose 0.44 per cent, to 8,590.77.

Australian Market

Local Markets Are Expected to Open Lower

Ahead of the local open SPI futures were 27 points lower at 6,016.

Thursday 24 March - close [Morningstar with AAP]: The Australian share market edged higher as weakness among the banks, miners and energy companies was offset by gains by retailers and industrial stocks.

The benchmark S&P/ASX200 was up 4.6 points, or 0.08 per cent, at 6,037.1 points, while the broader All Ordinaries index was up 3.8 points, or 0.06 per cent, at 6,144.1 points.

Patersons Securities Economist Tony Farnham said mixed oil prices and lower base metals prices weighed on the energy and mining-related materials sectors.

He said the market was also up against a general risk-off mood sparked by renewed fears of a trade war between the US and China.

"Trump has toned down the upbeat way he's been talking about China trade negotiations and is now saying they might have to increase auto imports on China because of national interests," he said.

"There is a degree of nerves out there which was not reflected as much in the US markets overnight, which were more focused on the Federal Open Market Committee minutes that were reasonably market friendly."

Mr Farnham said the financial sector was a key source of weakness.

ANZ fell 0.3 per cent to $27.76, Commonwealth Bank dropped 0.3 per cent to $69.59, National Australia Bank declined 0.4 per cent to $26.86, while Westpac was steady at $28.46 after the Federal Court cleared it of manipulating the bank bill swap rate, a key rate at which institutions borrow and lend money.

The court did find Westpac engaged in unconscionable conduct, which Mr Farnham said was deemed a "lesser charge".

Elsewhere in the financial sector, embattled wealth manager AMP fell 0.5 per cent to $3.91, QBE Insurance declined 1.5 per cent to $9.86 and investment bank Macquarie Group slipped 0.2 per cent to $116.24.

Rio Tinto dropped one per cent to $83.91, Fortescue Metals shed 0.7 per cent to $4.59 and gold miner Newcrest gave up 0.8 per cent to $20.62, while BHP Billiton bucked the trend to rise 0.1 per cent to $33.91.

Energy giant Woodside Petroleum was down 0.6 per cent at $33.59 and Oil Search shed 1.1 per cent to $8.32.

Among the strongest performers in the consumer discretionary sector was poker machine supplier Aristocrat Leisure, which gained eight per cent to $30.04 after the company reported a 2.8 per cent increase in half-year net profit.

Infant formula maker A2 Milk was another strong performer, adding 5.7 per cent to $9.83 following a 13.5 per cent slide in the last four trading sessions.

Qantas gained 1.4 per cent to $6.37 and toll road owner Transurban was 2.3 per cent higher at $11.81.

The Australian dollar is stronger against the US dollar following the release of the FOMC minutes, which Mr Farnham said confirmed that there would likely be three Fed rate hikes this year, instead of a possible four.


The benchmark S&P/ASX200 was up 4.6 points, or 0.08 per cent, at 6,037.1 points

The broader All Ordinaries index was up 3.8 points, or 0.06 per cent, at 6,144.1 points

National turnover was 2.7 billion securities traded worth $6.3 billion.

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