Sharemarkets in Europe and Asia retreated last night as Wall Street closed little changed.
| World Overnight | |||
| SPI Overnight (Mar) | 7051.00 | + 21.00 | 0.30% |
| S&P ASX 200 | 7088.00 | – 44.70 | – 0.63% |
| S&P500 | 3325.54 | + 3.79 | 0.11% |
| Nasdaq Comp | 9402.48 | + 18.71 | 0.20% |
| DJIA | 29160.09 | – 26.18 | – 0.09% |
| S&P500 VIX | 12.98 | + 0.07 | 0.54% |
| US 10-year yield | 1.74 | – 0.03 | – 1.64% |
| USD Index | 97.68 | + 0.15 | 0.15% |
| FTSE100 | 7507.67 | – 64.25 | – 0.85% |
| DAX30 | 13388.42 | – 127.33 | – 0.94% |
Greg Peel will resume writing the Overnight Report after Australia Day (next week). In the meantime, Jessica Amir from Bell Direct is providing a snapshot of insights and developments from overseas markets overnight.
By Jessica Amir, Bell Direct
The Australian share market is eyeing a positive day of trade after the World Health Organisation (WHO) suppressed some of the fears around the globe about the coronavirus.
The WHO said, it was “too early to consider this event is a public health emergency of international concern.” A bit of a sigh of relief for investors, after the strain of virus has killed 18 people in China and infected over 650.
In the US, stocks recovered from most of their earlier losses on the back of the WHO’s remarks, with airline stocks, anti-virus and vaccine companies seeing some healthy gains. American Airlines shares rose 5.4%, United Airlines closed 1.9% higher, while Inovio Pharmaceuticals surged 11.6%, and Gilead Sciences added 0.8%. We also saw the tech heavy Nasdaq close at a new record high.
Over in Europe, the ECB held its rates steady and launched a review of its monetary policy, as expected. The ECB President, Christine Lagarde didn’t provide any further detail when the market wanted more, which is why EU shares fell further from their record all-time highs.
In terms of local economic news
Yesterday we learnt the unemployment unexpectedly fell to 5.1% in December, which is closer to the RBA’s target of 4.5%. It was good news but caused investors to take local sharemarket profits off the table, with some traders thinking the RBA is now less likely to cut rates next month.
Today, all eyes will be on the manufacturing and services sector data for January.
To Markets
The Aussie share market futures are suggesting a 0.21%/15 point gain. Yesterday the benchmark index, ASX200 fell -0.63% or 45 points, closing at 7,088 points. That’s our second best close on record! Year to date, the market is up 6.76%.
On Wall Street, after their choppy session the Dow Jones closed virtually flat for the second day (0.09%/26 points lower), while the broader S&P500 rose 0.11% and Nasdaq added 0.20%.
European markets closed in the red. The Stoxx 600 lost -0.71%, UK’s FTSE lost -0.85%, the French CAC fell -0.65%, while the German DAX lost -0.94%.
In Asia, stocks in China fell the most, seeing their biggest one-day loss since last May last year, as the deadly virus death toll rose, while the city of Wuhan where the virus spread rapidly, remains in lockdown. China’s Shanghai Comp stumbled -2.75% lower, Hong Kong’s Heng Seng followed, losing -1.52%, while Japan’s Nikkei lost -1%, along with Korea’s Kospi.
Gold firmed US$5.00 higher to US$1,562 an ounce.
Oil continued to fall, losing –1.95% to US$55.65 a barrel, that’s an 11-week low, with China’s virus outbreak causing demand concerns.
Iron ore is -0.04% lower at US$94.80 a tonne.
Australian dollar trades at 68.43 US cents.
| Spot Metals,Minerals & Energy Futures | |||
| Gold (oz) | 1561.70 | + 3.80 | 0.24% |
| Silver (oz) | 17.79 | – 0.01 | – 0.06% |
| Copper (lb) | 2.71 | – 0.06 | – 2.00% |
| Aluminium (lb) | 0.81 | – 0.01 | – 1.07% |
| Lead (lb) | 0.89 | – 0.01 | – 1.11% |
| Nickel (lb) | 6.05 | – 0.08 | – 1.25% |
| Zinc (lb) | 1.08 | – 0.02 | – 1.75% |
| West Texas Crude | 55.50 | – 1.20 | – 2.12% |
| Brent Crude | 61.94 | – 1.22 | – 1.93% |
| Iron Ore (t) futures | 92.05 | – 3.35 | – 3.51% |
The Australian share market over the past thirty days…
| BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS | |||
| AGL | AGL ENERGY | Downgrade to Sell from Neutral | UBS |
| APE | AP EAGERS | Downgrade to Hold from Add | Morgans |
| CLW | CHARTER HALL LONG WALE REIT | Upgrade to Neutral from Underperform | Macquarie |
| CQE | CHARTER HALL SOC INFRA REIT | Upgrade to Accumulate from Hold | Ord Minnett |
| CQR | CHARTER HALL RETAIL | Upgrade to Outperform from Underperform | Macquarie |
| DMP | DOMINO’S PIZZA | Downgrade to Sell from Neutral | Citi |
| DXS | DEXUS PROPERTY | Upgrade to Outperform from Underperform | Macquarie |
| Upgrade to Accumulate from Hold | Ord Minnett | ||
| Upgrade to Buy from Neutral | UBS | ||
| FLT | FLIGHT CENTRE | Downgrade to Neutral from Outperform | Credit Suisse |
| FMG | FORTESCUE | Upgrade to Neutral from Underperform | Credit Suisse |
| HUB | HUB24 | Upgrade to Add from Hold | Morgans |
| IFN | INFIGEN ENERGY | Upgrade to Add from Hold | Morgans |
| MGR | MIRVAC | Upgrade to Hold from Lighten | Ord Minnett |
| Upgrade to Neutral from Sell | UBS | ||
| MTS | METCASH | Upgrade to Neutral from Underperform | Macquarie |
| NHF | NIB HOLDINGS | Upgrade to Neutral from Sell | UBS |
| PPC | PEET & COMPANY | Downgrade to Neutral from Outperform | Macquarie |
| QBE | QBE INSURANCE | Upgrade to Buy from Neutral | Citi |
| REH | REECE AUSTRALIA | Downgrade to Hold from Add | Morgans |
| RRL | REGIS RESOURCES | Downgrade to Underperform from Neutral | Macquarie |
| SCG | SCENTRE GROUP | Downgrade to Sell from Neutral | UBS |
| SCP | SHOPPING CENTRES AUS | Upgrade to Neutral from Underperform | Macquarie |
| SGP | STOCKLAND | Downgrade to Lighten from Hold | Ord Minnett |
| SUN | SUNCORP | Downgrade to Neutral from Buy | Citi |
| SYD | SYDNEY AIRPORT | Downgrade to Neutral from Outperform | Macquarie |
| TCL | TRANSURBAN GROUP | Downgrade to Accumulate from Buy | Ord Minnett |
| WOW | WOOLWORTHS | Upgrade to Outperform from Neutral | Macquarie |
