Daily Market Reports | Jan 17 2020
More all-time records were broken on Wall Street last night with Alphabet's (Google) market cap rising above US$1trn?
|SPI Overnight (Mar)||7025.00||+ 36.00||0.52%|
|S&P ASX 200||7041.80||+ 47.00||0.67%|
|Nasdaq Comp||9357.13||+ 98.44||1.06%|
|S&P500 VIX||12.32||– 0.10||– 0.81%|
|US 10-year yield||1.81||+ 0.02||1.17%|
|USD Index||97.04||+ 0.08||0.08%|
|FTSE100||7609.81||– 32.99||– 0.43%|
|DAX30||13429.43||– 2.87||– 0.02%|
Greg Peel is still on holidays. 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
US equites closed at brand new record highs overnight on stronger than expected jobs data, on top of better than expected earnings from Morgan Stanley. Base metal commodities also had a strong night too, all which is why the Aussie share market futures are suggesting a 0.4%/25 point rise at the open taking us further into brand new record skies.
Yesterday the local bourse passed the 7,000 point milestone for the first time in history after the ASX200 rose 0.67%/47 points to 7,042 points.
Morgan Stanley’s shares jumped 7% in the session after it revealed all three of its divisions, investment management, wealth and trading all produced more revenue than expected. The big banks shares followed, moving higher.
Morgan Stanley is the last of the six largest US banks to report and is one of four of the majors that beat analysts expectations, with Citigroup, J.P Morgan and Bank of America reporting earlier this week with profits beating expectations and surging bond trading results.
Also overnight, Microsoft shares hit record levels and Google’s parent Alphabet's market cap hit $1 trillion for the first time. What a night hey?
On Thursday the benchmark S&P500 rose 0.8% breaking above 3,300 points for the first time, while Nasdaq advanced 1.1% and the blue-chip Dow Jones surged 0.9%/267 points.
Across the Atlantic Ocean
European stocks closed mostly higher with investor reacting to the partial trade deal being signed. The Stoxx 600 rose 0.2%, UK’s FTSE fell -0.4%, The French CAC rose 0.1% and the Germany DAX closed -0.01% lower.
Gold slipped -0.05%/US$0.90 to US$1,552 an ounce.
Oil gained 1.1%/US$0.60 to US$58.41 a barrel.
Iron ore -0.25% lower at US$94.83 a tonne.
Australian dollar slipped -0.12% to 68.99 US as traders weigh up our competitiveness in the wake of the US China trade deal.
What else to watch today?
Yesterday the second largest company on the ASX, CSL cleared the $300 mark for the first time after Credit Suisse upped its price target to $320, as it expects 11% earnings growth this financial year and 22% next. Credit Suisse says although some consider its valuation is stretched as it's trading at a 90% premium to Australian industrial stocks, its “valuation is justified given CSL’s strong market leading position in a niche industry that has robust fundamentals”.
|Spot Metals,Minerals & Energy Futures|
|Gold (oz)||1553.30||– 1.80||– 0.12%|
|Silver (oz)||17.92||– 0.04||– 0.22%|
|Copper (lb)||2.83||+ 0.02||0.58%|
|Aluminium (lb)||0.81||+ 0.01||0.87%|
|Lead (lb)||0.90||+ 0.02||1.79%|
|Nickel (lb)||6.21||– 0.04||– 0.71%|
|Zinc (lb)||1.09||+ 0.01||0.65%|
|West Texas Crude||58.52||+ 0.71||1.23%|
|Brent Crude||64.62||+ 0.62||0.97%|
|Iron Ore (t) futures||95.25||– 0.05||– 0.05%|
|BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS|
|BPT||BEACH ENERGY||Downgrade to Hold from Accumulate||Ord Minnett|
|DHG||DOMAIN HOLDINGS||Downgrade to Sell from Neutral||UBS|
|FMG||FORTESCUE||Downgrade to Hold from Buy||Ord Minnett|
|FXL||FLEXIGROUP||Upgrade to Buy from Neutral||UBS|
|IGO||INDEPENDENCE GROUP||Downgrade to Lighten from Hold||Ord Minnett|
|IPL||INCITEC PIVOT||Upgrade to Equal-weight from Underweight||Morgan Stanley|
|MOZ||MOSAIC BRANDS||Downgrade to Hold from Add||Morgans|
|MTS||METCASH||Upgrade to Neutral from Underperform||Credit Suisse|
|NWL||NETWEALTH GROUP||Upgrade to Buy from Neutral||Citi|
|OGC||OCEANAGOLD||Upgrade to Buy from Accumulate||Ord Minnett|
|ORE||OROCOBRE||Downgrade to Sell from Hold||Ord Minnett|
|PDL||PENDAL GROUP||Downgrade to Hold from Add||Morgans|
|QBE||QBE INSURANCE||Upgrade to Outperform from Neutral||Credit Suisse|
|SBM||ST BARBARA||Upgrade to Buy from Accumulate||Ord Minnett|
|STO||SANTOS||Downgrade to Hold from Add||Morgans|
|SUL||SUPER RETAIL||Downgrade to Hold from Accumulate||Ord Minnett|
For more detail go to FNArena's Australian Broker Call Report, which is updated each morning, Mon-Fri.
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