US markets paused as the death toll from the coronavirus in China rises and with president Trump targeting Europe in Davos?
| World Overnight | |||
| SPI Overnight (Mar) | 7116.00 | – 7.00 | – 0.10% |
| S&P ASX 200 | 7132.70 | + 66.40 | 0.94% |
| S&P500 | 3321.75 | + 0.96 | 0.03% |
| Nasdaq Comp | 9383.77 | + 12.96 | 0.14% |
| DJIA | 29186.27 | – 9.77 | – 0.03% |
| S&P500 VIX | 12.91 | + 0.06 | 0.47% |
| US 10-year yield | 1.77 | 0.00 | 0.00% |
| USD Index | 97.53 | – 0.03 | – 0.03% |
| FTSE100 | 7571.92 | – 38.78 | – 0.51% |
| DAX30 | 13515.75 | – 40.12 | – 0.30% |
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 looks set to see a negative day of trade (that’s if you go by the futures), as the death toll in China from Coronavirus has risen to 17. Now 547 people are confirmed infected in China alone, not including the other regions of the world it’s spread to.
Air, train, subway and ferry transport in and out of the Chinese city of Wuhan, has now been shut down. The City has almost the population of Sydney and Melbourne, with stocks linked to Chinese travellers likely to see selling on fears that less revenue will hurt corporate bottom lines. Meantime, authorities are saying simply good hygiene can stop the virus from spreading, like covering your mouth when you cough or sneeze.
Overnight in the US, stocks had a bit of a volatile session before closing mostly flat, with the most gains in tech stocks, while the virus outbreak kept gains under wraps. IBM shares rose 3% after reporting quarterly results and its 2020 earnings guidance beating expectations. We also saw Apple shares hit an all-time high, and Tesla shares continued to gain momentum, up 4%, with its market cap hitting $100bn for the first time. Semiconductor stocks also hit an all time high, with Intel rising almost 3%.
In other news, equity markets in Europe fell from record highs as investors focused on the World Economic Forum in Davos, with Trump again threatening tariffs on European car imports in the absence of a trade commitment from the EU.
Markets
The Aussie share market futures suggestion a -0.32%/23 point fall. Yesterday, the ASX200 gained 0.94% or 66 points.
On Wall Street, the Dow Jones closed flat (-0.03%/10 points lower), rising as much as 120 points earlier lost, the S&P500 rose 0.03% and Nasdaq added 0.13%.
European markets closed in the red. The Stoxx 600 slipped -0.08%, UK’s FTSE fell -0.51%, the French CAC fell -0.6%, while the German DAX fell from its record high, losing -0.3% with traders locking in profits.
In Asia stocks attempted to rebound from heavy falls the day prior: Japan’s Nikkei rose 0.7%, China’s Shanghai Comp added 0.3%, while Hong Kong’s Heng Seng rose 1.3%.
Gold rose slightly compared to yesterday and is at US$1,558 an ounce.
Oil fell -2.95% to US$58.25 a barrel, on supply risks lingering.
Iron ore is -0.01% lower at US$94.88 a tonne.
Australian dollar trades at a 2019, 68.43 US cents in the wake of the disease outbreak.
| Spot Metals,Minerals & Energy Futures | |||
| Gold (oz) | 1557.90 | + 0.40 | 0.03% |
| Silver (oz) | 17.80 | + 0.03 | 0.17% |
| Copper (lb) | 2.77 | – 0.02 | – 0.60% |
| Aluminium (lb) | 0.82 | – 0.00 | – 0.20% |
| Lead (lb) | 0.90 | + 0.01 | 1.18% |
| Nickel (lb) | 6.13 | – 0.03 | – 0.55% |
| Zinc (lb) | 1.10 | – 0.02 | – 1.59% |
| West Texas Crude | 56.70 | – 1.64 | – 2.81% |
| Brent Crude | 63.16 | – 1.31 | – 2.03% |
| Iron Ore (t) futures | 95.40 | – 0.20 | – 0.21% |
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 | Citi |
| Upgrade to Neutral from Sell | UBS | ||
| NUF | NUFARM | Downgrade to Neutral from Outperform | Macquarie |
| ORG | ORIGIN ENERGY | Downgrade to Hold from Add | Morgans |
| PPC | PEET & COMPANY | Downgrade to Neutral from Outperform | Macquarie |
| QAN | QANTAS AIRWAYS | Downgrade to Neutral from Buy | Citi |
| QBE | QBE INSURANCE | Upgrade to Buy from Neutral | Citi |
| REH | REECE AUSTRALIA | Downgrade to Hold from Add | Morgans |
| RIO | RIO TINTO | Downgrade to Accumulate from Buy | Ord Minnett |
| 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 |
