Day Trading Pre Open - 05 December 2018

Good Morning Fellow Traders,

Many thanks @Quantum Torus @Ravgnome and AM Loungers. Not expecting @QT to be up early. Just when you think we get a reprieve from the Wall St shenanigans .....

All eyes on FBR this morning I would guess after Caterpillar pulled out of their MOU.

The Australian share market suffered near-across the board losses as the positive sentiment from the trade truce brokered at the G20 summit dissipates.

The benchmark S&P/ASX200 index was down 58.1 points, or 1.01 per cent, at 5713.1 on Tuesday, while the broader All Ordinaries fell one per cent.

The sell-off suggests the temporary resolution between the US and China, which resulted in an uptick in markets across the world, may have been a "band-aid solution", Pepperstone head of research Chris Weston said.

"Perhaps the damage has already been done for the global economy from the trade tariffs," he told AAP.

The energy sector was 1.4 per cent lower despite a rise in oil prices, which Mr Weston said is a reflection of investors questioning the global growth outlook.
Santos fell 2.5 per cent to $5.85 as investors cashed in on Monday's gains, while Woodside, Caltex and Oil Search were between 1.3 and 2.1 per cent lower.

The financial sector fell consistently throughout the day to close 1.2 per cent lower.
Westpac suffered the heaviest losses of the big four lenders, down 1.4 per cent to $25.89, and NAB the least, down 0.9 per cent to $24.38.
Macquarie Group fell 1.1 per cent to $116.35.

The resources sector was flat through morning trade but closed more than one per cent weaker, with South32 and BlueScope down 3.3 and 3.8 per cent respectively, while major miner Rio Tinto lost two per cent to $73.51.
BHP reversed earlier gains and was 0.6 per cent weaker at $31.62.

Consumer staples were dragged down by Coles - down 1.1 per cent to $11.49 - which has recorded six consecutive sessions in the red.

Metcash shares also weighed on the sector, tumbling more than seven per cent to $2.44 a day after the company said it saw tough times ahead for the supermarket sector.

The telecommunications sector was the only to gain on the indices, with Telstra a rare bright spot, climbing one per cent to $3.01.

Seven West Media - down 1.4 per cent to 68.5 cents - has hired Daily Telegraph deputy editor Anthony De Ceglie to head up its West Australian newspaper division.

Meanwhile, the Reserve Bank kept the official cash rate at a record low 1.5 per cent and reiterated its economic growth forecasts but is keeping a close eye on the stumbling east coast housing markets.

The Australian dollar edged higher as speculation about a slower pace of rate hikes from the Federal Reserve dragged on its US counterpart.
The Aussie was buying 73.70 US cents at 1630 AEDT, up from 73.65 US cents on Monday.

ON THE ASX:
* The benchmark S&P/ASX200 index closed down 58.1 points, or 1.01 per cent, at 5713.1
* The All Ordinaries was down 58.8 points, or one per cent, at 5797.5
* At 1630 AEDT, the SPI200 futures index was down 73 points, or 1.26 per cent, at 5698

CURRENCY SNAPSHOT AT 1630 AEDT:
One Australian dollar buys:
* 73.70 US cents, from 73.65 US cents cents on Monday
* 83.34 Japanese yen, from 83.63
* 64.79 euro cents, from 64.91
* 57.83 British pence, from 57.68
* 105.98 NZ cents, from 106.60

GOLD:
The spot price of gold in Sydney at 1630 AEDT was $US1236.54 per fine ounce, from $US1225.33 on Monday.

Wall Street fell more than 2 percent on Tuesday, led by bank stocks as a flattening U.S. Treasury yield curve set off warning lights about slowing growth and on fading hopes of a speedy resolution to the U.S.-China trade spat.

The declines, which put the benchmark S&P 500 on course for its biggest one-day percentage drop in six weeks, more than erased Monday’s gains after Beijing and Washington agreed to a 90-day truce to iron out their trade differences.
Yields on two-year and three-year bonds held above the five-year yield for a second day, while the benchmark 10-year yield US10YT=RR hit its lowest since mid-September as demand for longer-dated Treasuries rose on bets of an approaching economic slowdown. [US/]

The focus now is on the spread between the two-year and 10-year yields US2US10=TWEB, currently at its narrowest in over a decade and whose inversion has preceded the past three U.S. recessions.

“Historically there is a good correlation between the yield curve inverting and the timing of the next recession and the bond market has been a big focus for today,” said Binky Chadha, chief strategist at Deutsche Bank in New York.
The KBW Bank index .BKX slid 4.90 percent with Bank of America Corp (BAC.N) and Citigroup Inc (C.N) dropping more than 5 percent each. The overall S&P financial sector .SPSY dropped 4.03 percent.

The technology sector .SPLRCT fell 2.80 percent, while industrials .SPLRCI dropped 3.47 percent over a lack of specifics on the Sino-U.S. trade truce, including no written commitments and when the truce period starts.

“As soon as investors digested the information from the discussions, they focused on the uncertainties and lack of details,” Ryan Nauman, market strategist at Informa Financial Intelligence in Zephyr Cove, Nevada said.

Trade bellwethers Boeing Co’s (BA.N) 3.6-percent drop and Caterpillar Inc’s (CAT.N) 5.7-percent retreat weighed the most on the Dow, while twin declines of 3.7 percent in Amazon.com Inc (AMZN.O) and Apple Inc (AAPL.O) dragged on the Nasdaq and S&P.

Apple dropped on bearish comments from brokerage HSBC and as supplier Cirrus Logic Inc’s (CRUS.O) lowered outlook added to growing evidence of tepid iPhone sales.

At 1:16 p.m. ET the Dow Jones Industrial Average .DJI was down 565.16 points, or 2.19 percent, at 25,261.27, the S&P 500 .SPX was down 62.55 points, or 2.24 percent, at 2,727.82 and the Nasdaq Composite .IXIC was down 196.65 points, or 2.64 percent, at 7,244.86.

Amid fears of slowing U.S. growth, Dollar General Corp (DG.N) sank 8 percent after warning that the proposed tariffs on Chinese imports could begin to have a greater impact on its business as well as its customers.

Declining issues outnumbered advancers for a 3.73-to-1 ratio on the NYSE and a 4.66-to-1 ratio on the Nasdaq.
The S&P index recorded 40 new 52-week highs and 16 new lows, while the Nasdaq recorded 36 new highs and 130 new lows.

The U.S. stock and bond markets will be closed on Wednesday to mourn the death of former U.S. President George H.W. Bush.
Source: Netwealth Morning Business Roundup

Get over the mid week hump with Scrambled Egg with Avocado and Spiced Cauliflower Sides. Coffee is back - otherwise I'll never hear the end of it.



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Happy trading, play nicely and make informed decisions.