10 August 2017 Day Trading Pre Market

Good Morning Fellow Traders

The Australian sharemarket defied a dour consumer outlook, rising US-North Korean tensions and the negative lead from Wall Street as the major banks bounced.
The S&P/ASX 200 index climbed 22 points, or 0.38 per cent, to 5765.7 after Commonwealth Bank narrowly beat earnings forecasts, sparking bargain hunting in the lenders.

US stocks surrendered gains after US President Donald Trump warned North Korea would “be met with fire and fury like the world has never seen” if the rogue nation threatened the US.
In response North Korea said it was seriously considering a pre-emptive strike on Guam.

Investors shrugged off the 1.2 per cent fall in Westpac Melbourne Institute consumer confidence index last month, but the Australian dollar fell US0.4¢ to US78.70¢ as the data signalled weak wage and spending conditions.
“The consumer mood has deteriorated over the last year with August marking the ninth consecutive month where pessimists are outnumbering optimists,” Westpac chief economist Bill Evans said.
“We have not seen such a succession of weak reads since 2008.”

Government 10-year yields were up 1.5 points at 2.642 per cent as global bond-bears continued to warn inflation was set to increase again and yields would rise too.

The Shanghai composite index was down 0.3 per cent at the close of the ASX.
Spot iron ore dropped one per cent to $US75.46 a tonne yesterday and Singapore iron ore futures were flat today.

CMC Markets chief market analyst Ric Spooner said today’s gains came despite falls on Asian markets due to increasing tension between the US and North Korea.
“For Australia, we’ve been helped by the CBA result, which was a relief,” Mr Spooner said.
“It was broadly in line with expectations but against the background of weaker markets in recent times.
“That has been enough to see some support for the banking sector.”
He said the share market also benefited from the Australian dollar’s fall, which came as currency traders moved towards safe-haven assets like the Japanese yen, and due to an easing iron ore price.

The local currency dropped to a three-week low of US78.55¢, though recovered some ground in afternoon trade.
Miners were an area of strength on the share market, with BHP adding 0.4 per cent to $26.21 and Rio Tinto climbing 0.6 per cent to $66.42.

Gold stocks lifted as investors sought safe-haven assets such as gold, with Newcrest Mining up 1.4 per cent to $20.62.
Infant formula maker Bellamy’s Australia surged 32¢, or 4.1 per cent, to $8.20 after Chinese authorities lifted a suspension on the company’s Camperdown canning facility.

The broader All Ordinaries index was up 20.7 points, or 0.36 per cent, at 5816.4 points.
The September SPI200 futures contract was up 20 points, or 0.35 per cent, at 5698 points.
National turnover was 2.6 billion securities traded worth $5.1 billion.

U.S. stocks closed barely down on Wednesday as investors appeared to turn their focus away from North Korea-related geopolitical tension that weighed on equities for most of the session.


U.S. President Donald Trump's warning to North Korea and Pyongyang's threat of possible armed retaliation drove investors out of stocks and other risky assets on Wednesday and into textbook safe-havens like gold and Treasuries.
Trump's remarks on Tuesday that North Korea would face "fire and fury like the world has never seen" weighed on Wall Street and drove up the VIX "fear gauge" .VIX, or the cost of protection against a drop in the S&P 500.
The VIX rose further on Wednesday, as far as 12.63, its highest in more than a month.

The Korean People's Army said on Wednesday it was "carefully examining" plans for a missile attack on the U.S. Pacific territory of Guam, which has a large U.S. military base. U.S. Defense Secretary Jim Mattis told Pyongyang it should stop any actions that would lead to the "end of its regime and the destruction of its people."
But while investors appeared to favor safe-haven assets, some bargain seekers helped Wall Street's three major indexes pare losses.

"Geopolitics splashed cold water on the markets," said JJ Kinahan, chief strategist at TD Ameritrade.
"There's uncertainty and caution as investors nervously eye the next foreign policy moves."
Trump tweeted on Wednesday about the strength of the American nuclear arsenal, but expressed hope it would not need to be used. U.S. Secretary of State Rex Tillerson said he did not believe there was an imminent threat.
The Dow Jones Industrial Average .DJI fell 70.4 points, or 0.32 percent, to 22,014.94, the S&P 500 .SPX lost 5.51 points, or 0.22 percent, to 2,469.41 and the Nasdaq Composite .IXIC dropped 31.19 points, or 0.49 percent, to 6,339.27.
The S&P fell as much as 0.52 percent at its session low.

The pan-European FTSEurofirst 300 index .FTEU3 lost 0.75 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.40 percent.
Emerging market stocks lost 1.03 percent. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.63 percent lower, while Japan's Nikkei .N225 lost 1.29 percent.

Source: Netwealth Morning Business Roundup

A colourful breakfast of berry muffins, yoghurt in Mason jars and assorted freshly blended juices.

It's World Lazy Day but whilst there are trades to be made, there will be no rest for the wicked. Happy trading.