Good Morning Fellow Traders,
Thanks @Quantum Torus, @Ravgnome and AM Loungers. @onetricky reminded us that day trading takes focus and if your mind is somewhere else, it's probably best to give it a miss. Thanks to @mirren who bravely recounted the human side to clinical trials through her own personal experience.
The ASX dropped on Tuesday, with banks and CSL dragging the index back to a level last seen in mid-September.
The S&P/ASX 200 index fell 46 points, or 0.8 per cent, to 6126 while the All Ordinaries index also fell 46 points to end at 6245.
Australian shares had started the day on a positive note after the US signed a trade deal with Canada and Mexico, lifting Wall Street to a mostly positive close.
But the gains faded through the session and Asian stocks also fell on Tuesday as risk appetite dimmed and cautious views on the global economy curbed risk sentiment.
There were signs of weakness in the Chinese manufacturing sector highlighted by purchasing managers' index (PMI) numbers released on Sunday.
IHS Markit purchasing managers' indices released on Monday showed manufacturing growth in the euro zone slowed to a two-year low at the end of the third quarter.
The Australian dollar traded at US71.98¢
after the Reserve Bank of Australia kept interest rates on hold as widely expected.
RBA governor Philip Lowe highlighted a softer housing market and tighter credit conditions and banks were among the worst performers during the session.
Commonwealth Bank fell 1.2 per cent to $69.57, Westpac lost 1 per cent to $27.24, ANZ declined 0.9 per cent to $27.49 and NAB dropped 0.7 per cent to $27.40.
CSL shares were also under pressure during the session, with the blood products giant losing 2 per cent to end the session at $199.33, dropping back below the $200 mark.
Aristocrat Leisure shares were down 2.8 per cent at $27.62 and Macquarie Group fell 1.6 per cent to $122.63.
Qantas Airways was another notable decliner, with the airline losing 3.3 per cent to trade at $5.64.
Oil prices hit a four-year high in New York trading on Monday and oil prices continued to hover near those levels on Tuesday.
That worked to bolster the energy sector, however, with Origin Energy climbing 1.3 per cent to $8.38 and Santos climbing 0.6 per cent to $7.31.
Mining giant BHP was one of the best performers in the benchmark, in terms of market weight, with the commodity major climbing 0.3 per cent to $34.70.
Other mineral extractors that performed well included South32, up 0.7 per cent at $3.91 and Iluka Resources, up 1.4 per cent at $7.31.
Lithium plays were standouts, with Orocobre surging 11.4 per cent to $4.68 and Galaxy Resources up 7.2 per cent to $2.69.
Stockwatch - Woodside
Citi downgraded Woodside to sell, citing a recent rally in the share price and long-term commodity price forecasts. "Investors should consider taking profits noting the risks to LNG markets," the broker said. Still, the firm is the broker's preferred play over Oil Search for exposure to uncontracted LNG. That view is premised on that Citi believes Browse-NWS is a credible project. "The Browse breakeven LNG price is low enough to tolerate at 12 per cent slope at Citi's $US55 oil price," the broker said. Still, it noted that the Browse project has a later timetable than Oil Search's PNG growth, "it has a higher risk" of realising that long-term LNG contract price. Shares were steady at $38.40.
Movers
Oil
Oil prices edged up on Tuesday, holding near a four-year high reached the previous day as markets adjust to the prospect of tighter supply once the US sanctions against Iran kick in next month. Brent crude oil futures were trading at $US85.06 per barrel, up 8 cents. That kept Brent near the $85.45 peak reached on Monday, its highest since November 2014. Brent has risen by around 20 per cent from its most recent low in August. US WTI crude futures were up 28 cents at $75.58 a barrel.
Copper
Copper prices dipped after weak manufacturing data from top consumer China caused nervousness about demand. Growth in China's manufacturing sector stalled in September as external and domestic demand weakened, two surveys showed on Sunday, in a sign US tariffs are inflicting a heavy toll on the economy. China accounts for nearly half of global demand, estimated at 24 million tonnes this year. Three-month copper on the London Metal Exchange fell 0.7 per cent to US$6,206 a tonne.
Consumer sentiment
Consumer confidence rose 0.8 per cent to 118.1 points in the week to September 30, according to the latest ANZ/Roy Morgan weekly index. The index showed that consumers were less confident about their financial situation over the next year, with a reading of minus 1.2 per cent to 127.2. Consumers were more optimistic about progress in the economy over the next year, with the one-year reading for the index up 2.1 per cent at 108.2 and 1.3 per cent higher to 113.3 over five years.
The Dow hit a record closing high on Tuesday, but a drop in Facebook (
FB.O) shares weighed on both the S&P 500 and Nasdaq.
Based on the latest available data, the Dow Jones Industrial Average
.DJI rose 122.73 points, or 0.46 percent, to 26,773.94, the S&P 500
.SPX lost 1.18 points, or 0.04 percent, to 2,923.41, and the Nasdaq Composite
.IXIC dropped 37.76 points, or 0.47 percent, to 7,999.55.
Source: Netwealth Morning Business Roundup
Champions League - Juvie despite no CR7 beat Young Boys 3-0; Man City vs Hoffenheim 2-1 and no goals yet with 15 mins to play in the Man Utd vs Valencia match.
Your midweek brekkie is a colourful and delicious Egg, Bacon and Haloumi Salad served with a Coffee.
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Happy trading, play nicely and make informed decisions.
