Yesterday on the ASX a slippery oil price and a sharp reversal in investor sentiment prompted the ASX to finish in the red for the first time in 2017, led by falls in the heavyweight banks.
The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each fell 0.8 per cent to 5760.7 points and 5813 points, respectively.
Investors sold out of every sector, with banking stocks leading the bourse south. Commonwealth Bank of Australia slid 0.5 per cent, while Westpac slipped 0.8 per cent. ANZ Banking Group fell 1.5 per cent and National Australia Bank finished the day down 1.2 per cent. 1
Overnight U.S. equities were mostly higher in choppy trade on Tuesday, as the Nasdaq composite notched a fresh record high, while investors prepared for a key news conference from the U.S. president-elect.
Looming ahead is the start of the corporate earnings season, which will be closely watched given the market's recent rally. "We're going to need to get good earnings growth to justify these high levels," said First Standard's Cardillo.
S&P 500 earnings per share are expected to record a 4.4 percent year-over-year increase, according to Lindsey Bell, investment strategist at CFRA.
"I maintain that the most important headline for the market's direction in 2017 pertains to the new corporate tax rate. Forward multiples that reside at their cyclical peak demand a significant cut," Jeremy Klein, chief market strategist at FBN Securities, said in a note. 2
The Dow Jones industrial average fell 23 points to 19,864.
The S&P 500 gained 0.89 points to 2,269, with health care leading four sectors higher and real estate the biggest decliner.
The Nasdaq rose 15 points, or 0.28 percent, to 5,547.
Oil prices fell about 2 percent on Tuesday, extending the previous session's sharp sell-off, as the U.S. dollar strengthened and doubts over implementation of a global deal to cut output loomed.
OPEC members appear to be reducing production under a global deal to rein in oversupply but it is unclear whether other big producers like Iraq will follow suit. 2
Base metals went off
Copper + 2.96%
Nickel + 2%
Zinc + 1.9%
Aluminium + 1.4%
Gold prices were slightly higher in late U.S. trading Tuesday and did hit a six-week high during the session. An overnight dip in prices turned into a buying opportunity for bargain hunters when the U.S. day session got under way. Reports Tuesday said demand for physical gold from China is increasing ahead of the Chinese lunar new year. There has also been a pick-up in demand for gold-backed exchange-traded-funds early in 2017. The technical chart postures for gold and silver are also turning more bullish early this year. 4
Gold $1186
HUI flat
AUD Gold $ 1610
