The local market will start with a small rise this morning as investors reflect on the Trump rally, which continued on Wall Street on Friday, even though other markets saw a slowing in the gains.
As well, the market will have to contend with a public holiday in the US tonight for President’s Day, meaning there won’t be any guide for investors until tomorrow night, our time.
The ASX 200 futures rose 0.1% rose a weak 5 points in trading overnight Friday.
That was after eurozone shares fell 0.2% on Friday, but the US S&P 500 rose 0.2%.
Over the week, most major share markets rose helped by more good economic and profit news and anticipation of President Trump’s pro-business policies (which have been slow to emerge, despite constant talking them up by the President).
US shares added 1.5%, as did Australian shares, Eurozone shares rose 1%, Chinese shares were up 0.2%, but Japanese shares lost 0.7%.
Bond yields generally rose as the reflation trade continued but commodities were mixed with oil and most metal prices weaker, but the iron ore price again surged higher.
The $A was little changed ending at 76.64 US cents early Saturday, falling back under 77 US cents and down on the three month highs set mid-week.
On Wall Street all three major stock indexes closed at records on Friday with the Dow edging higher to extend its record-setting streak to a seventh session. Much of the market spent most of the session in the red until a late bounce.
The Dow added 4.28 points to finish at 20,624.05 for a weekly gain of 1.8%. The S&P 500 index rose 3.94 points, or 0.2%, to end at 2,351.16, up 1.5% on the week. The Nasdaq was up 23.68 points, or 0.4%, to end at 5,838.58, and rose 1.8% over the week. In Australia, the ASX 200 index finished down 0.2% on Friday (it was up 1.0% the Friday before), but added 1.5% over the week to 5805.8. That was after a 1.8% jump the week before.
The All Ordinaries was steady on Friday and up 1.8% over the five trading sessions.
Monadelphous Group was the week’s biggest gainer, up 9.1%. Seven Group Holdings rose 5.3% (and reports its interim figures tomorrow), Fortescue Metals Group was up 6.2% and South32 jumped 5.9% after its solid interim and first dividend.
BHP Billiton (which releases its interim figures tomorrow as well) and Rio Tinto both climbed a more sedate 2.7%.
CSL added 5.2% on a profit and dividend boost. Online job classifieds group Seek rose 7.2% for the week.
In the banks, CBA shares jumped 3% after it posted a record $4.9 billion first-half profit, ANZ, NAB and Westpac added 4.3%, 2.7% and 3.5% respectively.
Primary Heath Care was the week’s biggest loser slumping 16% after the company reported a surprise 69% profit drop two days ahead of schedule on Wednesday.
Domino’s Pizza fell 12% in spite of a solid interim. Its stock was hammered after Fairfax Media released a report on underpayment and inadequate returns at some of the pizza network’s franchises stores and again on Wednesday after it released its results.
Seven West Media, which reported a 91% profit slump, lost 7% over the week. Ten, which shocked with a surprise earning downgrade to a loss, actually ended the week up 2.3%.
