Day Trading Pre Open - 17 September 2018

Good Morning Fellow Traders,

Thanks @Quantum Torus, @Ravgnome and AM Loungers. I hope you all enjoyed your weekend. I got out and about. Check out the Wildlife Photographer of the Year Exhibition if you can. Well worth it - one of the oldest photo comps in the world and the first time in Brissie.

@Quantum Torus is still chasing a ball with a golf club and @Endless is baking cakes between hitting the ski slopes. Fifth round of the EPL was entertaining. Champions League kicks off this week. Other football codes approaching the serious end of their seasons.

Now for some business news.

Australian shares have finished higher on Friday, buoyed by improving global sentiment around trade, solid Chinese economic data and a bout of local buying by bargain hunters.

The benchmark S&P/ASX200 index closed 36.6 points, or 0.6 per cent, higher at 6,165.3 points on Friday, while the broader All Ordinaries index was up 36.4 points, or 0.58 per cent, at 6,276.3 points.
For the week - which also marks the 10th anniversary of the GFC - the benchmark index lift
ed 0.35 per cent.

Pepperstone head of research Chris Weston said signs of constructive dialogue between the US and China had led to investor confidence in Asia, where almost all markets were higher on Friday.

"You're seeing a lot of that bearish, negative sentiment being unwound and we're feeding off some of that optimism," he said.

The benchmark has lost 2.4 per cent since the beginning of September and had fallen for ten of the previous twelve sessions as trade war fears frayed nerves.

The Australian dollar remains around 72 US cents but had its best week since January on the back of positive results on the share market combined with the strong August jobs report on Thursday and the easing in US-China trade tension.

It got a lift overnight when Turkey's central bank hiked interest rates, boosting the lira and concerns about emerging markets to prompt some short covering in the Aussie, which has been sold as a hedge against such risks.
The Aussie was buying 72.06 US cents at 1700 AEST, from 71.87 on Thursday.

Dalian iron ore climbed three per cent on Thursday in reaction to the lower trade worries, lifting the materials sector on the ASX.
BHP was 1.6 per cent higher at $31.82, while Rio Tinto was up 1.2 per cent to $73.15.

The financial sector closed half a per cent higher as banks recovered from a tumultuous week affected by the latest hearings of the banking royal commission, with Westpac the strongest mover, up 0.7 per cent to $27.76, while NAB was the weakest, up 0.2 per cent to $27.35.

ANZ found itself the target of civil penalty proceedings from ASIC over allegations the bank breached its continuous disclosure obligations during a 2015 capital raising.
ASIC alleges that ANZ, which has already been charged with criminal cartel offences related to the raising, should have advised the market that the investment banks involved in the deal took up nearly a third of the shares in the placement.

ON THE ASX:
* The S&P/ASX200 closed up 36.6 points, or 0.6 per cent, at 6,165.3 points
* The All Ordinaries was 36.4 points, or 0.58 per cent, higher at 6,276.3 points
* In futures trading the SPI200 futures index was up 43 points, or 0.7 per cent, at 6,174.0 points at 1630 AEST.

CURRENCY SNAPSHOT AT 1700 AEST:
One Australian dollar buys:
* 72.06 US cents, from 71.87 US cents on Thursday.
* 80.64 Japanese yen, from 80.10
* 61.56 euro cents, from 61.83
* 54.94 British pence, from 55.12
* 109.41 NZ cents, from 109.65

GOLD:
The spot price of gold in Sydney at 1700 AEST was $US1,205.929 per fine ounce, from $US1,204.45 per fine ounce on Thursday.

U.S. stocks ended little changed on Friday as financials .SPSY gained with bond yields, while news that President Donald Trump instructed aides to proceed with tariffs on about $200 billion more of Chinese products limited gains.

The Dow Jones Industrial Average .DJI rose 8.68 points, or 0.03 percent, to 26,154.67, the S&P 500 .SPX gained 0.79 point, or 0.03 percent, to 2,904.97 and the Nasdaq Composite .IXIC dropped 3.67 points, or 0.05 percent, to 8,010.04.

Australian shares are set for a sluggish start to the week following reports US President Donald Trump has called for fresh tariffs on Chinese products.

AMP Capital's chief economist Shane Oliver said any tariffs that are imposed won't directly impact local markets, but all eyes will remain on the US next week to see if Mr Trump carries through.

"We probably would have been stronger tomorrow were it not for talk of Trump wanting to go ahead with the extra tariffs," he told AAP on Sunday.

Dr Oliver has tipped the Australian share market to open with the slightest of gains at around five or six points up.
On Tuesday, the release of the Reserve Bank's last meeting's minutes is expected to show the monetary authority remains optimistic about the local economy, with no urgency to move on interest rates.

However, homeowners and investors may not be so happy when the Australia Bureau of Statistics releases house price data for June on the same day. Dr Oliver says it's set to show yet another fall - around one per cent, led by Sydney and Melbourne.

Meanwhile, population figures to be released on Thursday are expected to show strong growth, according to Dr Oliver, and may add fuel to the immigration debate.

"We'll probably see Queensland continuing to benefit there relative to NSW," he said.

Internationally, most interest will remain focused on the trade war between China and the US.

Locally, the skirmish will also impact the Australian dollar, which looks likely to suffer as the greenback strengthens on the back of Mr Trump's tariff threats.

"In the short term it depends on what happens with trade, if those tariffs are announced it'll go down and head towards 70 cents," Dr Oliver said.

Source: Netwealth Morning Business Roundup

To begin the week, for your dining pleasure we have Mini Smoked Salmon Omelettes and I'm pouring the Coffee right now.



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Happy trading, play nicely and make informed decisions.