Good Morning Fellow Traders,
The share market has closed higher for a second consecutive session, due to strong gains by the banks and miners.
The benchmark S&P/ASX200 index rose 0.6 per cent to 5,746.4 points following a lift in global sentiment, illustrated by the second best gains of 2017 on Wall Street.
Reports that Hurricane Irma has not been as devastating as first feared, and the fact North Korea did not test a missile over the weekend as some had speculated, created a risk-on mood, optionsXpress market analyst Ben Le Brun said.
"There was a relief rally on the back of North Korea and Hurricane Irma in the US and we are riding their coat tails," Mr Le Brun said.
"There's been a nice bounce back in the banks and miners due to the risk-on environment but not all sectors have had their shoulder to the wheel today; those being the consumer staples, telcos, energy and utilities."
The Australian dollar fell to a low of 79.98 US cents on Tuesday morning, but was back at 80.37 US cents at 1700 AEST, where it was 24 hours earlier.
Shares in the mining sector were boosted by higher base metal prices, with Rio Tinto up 1.9 per cent at $68.80, BHP Billiton gaining 1.2 per cent to $27.12 and Fortescue Metals was 1.6 per cent higher at $5.90.
Gold miners were weaker after a fall in the precious metal's price, with Newcrest down 1.9 per cent to $22.21 and Evolution Mining dropping 2.7 per cent to $2.53, as it confirmed it has received interest in its Edna May mine in Western Australia.
Among the banks, Commonwealth Bank led gains with a rise of 2.3 per cent to $75.92, while ANZ gained 1.4 per cent to $29.90, Westpac added one per cent to $31.65 and National Australia Bank was 0.8 per cent higher at $30.76.
QBE gained 2.5 per cent to $10.50 after it announced chief executive John Neal will step down at the end of the year and will be replaced by the head of the company's Australian and New Zealand unit.
ON THE ASX:
* At the close, the benchmark S&P/ASX200 was up 33.3 points, or 0.58 per cent, at 5,746.4 points.
* The broader All Ordinaries index was up 31.3 points, or 0.54 per cent, at 5,806.4 points.
* The September SPI200 futures contract was up 40 points, or 0.7 per cent, at 5,745 points.
* National turnover was 3 billion securities traded worth $5.8 billion.
CURRENCY SNAPSHOT AT 1700 AEST:
One Australian dollar buys:
* 80.37 US cents, steady from Monday
* 88.03 Japanese yen, from 87.23 yen
* 67.11 euro cents, from 66.94 euro cents
* 60.92 British pence, from 60.94 pence
* 110.40 NZ cents, from 110.83 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEST was $US1,326.29 per fine ounce, from $US1,335.50 per fine ounce on Monday.
BOND SNAPSHOT AT 1630 AEST:
* CGS 4.50 per cent April 2020, 1.9149pct, from 1.9029pct
* CGS 4.75pct April 2027, 2.5901pct, from 2.5543pct
Sydney Futures Exchange prices:
* September 2017 10-year bond futures contract at 97.36 (implying a yield of 2.64pct), from 97.397 (2.603pct) on Monday
* September 2017 3-year bond futures contract at 97.995 (2.005pct), from 98.01 (1.99pct).
(*Bond market closes taken at 1630 AEST previous local session; currency closes taken from 1700 AEST previous local session)
In the U.S. the S&P 500 hit a record closing high for the second day in a row on Tuesday, with financial stocks leading the charge, but gains were stunted by a decline in Apple Inc (
AAPL.O) shares after it unveiled its latest iPhone.
Nasdaq also clocked a record closing high despite weakness from Apple. Investors were more comfortable with riskier assets as concerns about U.S. tensions with North Korea eased and the financial impact from Hurricane Irma appeared less severe than feared last week.
The financial sector .SPSY was the S&P 500’s biggest driver as bank stocks were helped by rising U.S. Treasury yields, while the utilities and real estate sectors lost ground.
“It’s a better environment for risk assets. As long as these two issues North Korea and the hurricane - have receded as concerns, it gives investors a green light to focus on stronger fundamentals,” said David Joy, chief market strategist at Ameriprise Financial in Boston.
The Dow Jones Industrial Average
.DJI rose 61.49 points, or 0.28 percent, to 22,118.86, the S&P 500
.SPX gained 8.37 points, or 0.34 percent, to 2,496.48 and the Nasdaq Composite
.IXIC added 22.02 points, or 0.34 percent, to 6,454.28.
Concerns about Hurricane Irma’s impact receded as it weakened to a tropical depression, while investors shrugged off fresh developments related to North Korea.
“A lot of it is the realization that the latest hurricane wasn’t as devastating in the U.S. as people feared,” said Tim Ghriskey, chief investment officer of Solaris Asset Management in New York.
Apple’s shares (
AAPL.O) closed a volatile trading session 0.4 percent lower at $160.82 after rising as high as $163.96, after it unveiled its 10th anniversary edition of the iPhone. Apple’s release date of Nov. 3 was later than some investors had expected.
While some investors cited worries about whether Apple would face supply shortages, others said traders were just taking profits.
“There were no blockbuster surprises although what they’re doing with the products is all pretty good,” said Ghriskey.
The iPhone maker was the second-biggest drag on the S&P behind McDonald’s (
MCD.N), which fell more than 3 percent on concerns about its third-quarter results.
Most of the 11 major S&P sectors were higher, with the telecom services index .SPLRCL clocking the biggest gain with a 1.4 percent rise.
Financials, the biggest driver on the day, rose 1.2 percent, helped by a 1.8-percent jump in the S&P Bank subsector .SPXBK. Investors in banks, whose profits are boosted by higher rates, were reacting to a jump U.S. Treasury 10-year yields US10YT=RR to a three-week high after a 10-year note auction.
Also, Goldman Sachs (
GS.N) unveiled a growth plan that could add as much as $5 billion in revenue annually.
The S&P Utilities .SPLRCU and Real Estate .SPLRCREC sectors were the laggards of the day, with 1.8 percent and 1.2 percent declines, as investors shied away from interest rate- sensitive stocks.
Advancing issues outnumbered declining ones on the NYSE by a 1.71-to-1 ratio; on Nasdaq, a 1.70-to-1 ratio favored advancers.
About 5.89 billion shares changed hands on U.S. exchanges, above the 5.79 billion 20-day average.
Source: Netwealth Morning Business Roundup
Breakfast - yes I know - disgustingly healthy again - is quinoa and chia porridge topped with fresh figs, peaches, almonds and coconut flakes. Accompanied with grape juice - unfermented. You lot don't need any encouragement.
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Happy Trading!!
