04 September 2017 Day Trading Pre Market

Good Morning Fellow Traders,

A reasonably good open is predicted for the Australian share market this week, after the US and European markets had modest gains on Friday.
AMP Capital's chief economist Shane Oliver predicts the market to open about 20-25 points, or 0.4 per cent higher on Monday, as markets took the lower than expected US jobs figures well.

Economists are bracing for a big week of financial events, including a Reserve Bank of Australia board meeting on Tuesday, local economic growth figures on Wednesday and a European Central Bank meeting on Thursday.

Dr Oliver says it's unlikely the Reserve Bank will move interest rates as changes are usually well flagged, and an increase isn't tipped until the end of 2018.
"They're likely to say economic conditions have improved since the start of the year ... and there's confidence in measures from stopping the property market from growing too much," he told AAP on Sunday.

Data released by CoreLogic last Friday showed housing prices had slowed in both Sydney and Melbourne.

Dr Oliver says all eyes will be on the June quarter economic growth figures to be released on Wednesday, particularly the change in Gross Domestic Product.
He predicts GDP growth to be at 0.5 per cent, up from slow growth in March of 0.3 per cent.
He says "it should rise because of strong consumer spending," and added that the impact of Cyclone Debbie in Queensland and northern NSW slowed down GDP growth in March.

The Australian dollar is at 79.6 US cents and could flirt with 80 US cents in the coming week depending on the strength of economic data and the Reserve Bank.
"It depends on what the Reserve Bank says, a further rise could lead to slower growth and slower inflation," he said.
He says the Reserve Bank would prefer the dollar to be around 70 US cents for more stable growth.

Commodity prices are expected to continue strong, after growth last week in gold, copper and iron ore.
Oil prices have come off despite Hurricane Harvey causing about 20 per cent of oil refineries in the US to close, driving demand down while increasing the cost of gasoline.

North Korea's Independence Day on September 9 could influence global markets, depending on how the unpredictable rogue nation celebrates the public holiday.

Wall Street gained modestly on Friday as a tepid U.S. jobs report kept expectations muted for another interest rate hike this year, while investors kicked off a typically dour month for stocks on a positive note.
U.S. job growth slowed more than expected in August after two straight months of hefty increases. The Labor Department said on Friday nonfarm payrolls increased by 156,000 last month, while economists had forecast an increase of 180,000.

Following the data, traders were betting on a 39 percent chance that the Federal Reserve would raise rates at its December meeting, similar to bets earlier in the week, according to the CME Group’s FedWatch tool.
“The latest economic data that came out today ... didn’t provide information to the Fed that they need to go out and raise interest rates,” said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.

“The data kind of continued to show this Goldilocks-type situation, which the market tends to like,” Carlson said. “It’s not too hot, it’s not too cold.”

The Dow Jones Industrial Average .DJI rose 39.46 points, or 0.18 percent, to end at 21,987.56, the S&P 500 .SPX gained 4.9 points, or 0.20 percent, to 2,476.55 and the Nasdaq Composite .IXIC added 6.67 points, or 0.1 percent, to 6,435.33.

Market watchers were also digesting other economic data. U.S. construction spending unexpectedly fell in July, hitting a nine-month low, but the Institute for Supply Management said its index for factory activity soared to 58.8 in August, the highest reading since April 2011.

“The markets are up, I think, because the economic data that has been released is still supportive of economic growth, still supportive of earnings growth, which ultimately is going to drive stock prices,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

Energy .SPNY and materials .SPLRCM led among major stock sectors while utilities .SPLRCU lagged the most.
The S&P 500 hovered near all-time highs as major stock indexes marked gains for a second straight week. The Nasdaq tallied a record closing high after minting its best week of the year.

The benchmark S&P had posted a 0.06 percent gain in August, its most sluggish monthly performance since March’s slight decline. September ranks as the worst month for stocks, according to the Stock Trader’s Almanac.

Shares of major automakers climbed after the companies reported better-than-expected August sales and issued optimistic outlooks as Houston area residents replace cars and trucks after Hurricane Harvey. General Motors (GM.N) rose 2.2 percent and Ford Motor (F.N) gained 2.9 percent.

Lululemon Athletica (LULU.O) shares rose 7.2 percent after the yoga and leisure apparel maker reported profit and revenue that topped expectations.
Advancing issues outnumbered declining ones on the NYSE by a 2.30-to-1 ratio; on Nasdaq, a 1.92-to-1 ratio favored advancers.
About 5.1 billion shares changed hands in U.S. exchanges, below the 5.8 billion daily average over the last 20 sessions.

Source: Netwealth Morning Business Roundup


Detox Monday breakfast of  mixed berry and muesli yoghurt parfaits with nectarine juice.


   

It will be interesting to see what the gold stocks do in view of North Korea's shenanigans over the weekend.

Happy Trading!!!