Day Trading Pre Open - 06 November 2018

Good Morning Fellow Traders,

Muchas gracias @Quantum Torus @Ravgnome (who worried me with his late appearance) and AM Loungers. Now - not too much frivolity folks. The fun police are watching.

Man Utd about to kick off against Arsenal - I'm concerned - yikes.

The Australian share market has finished the day almost one per cent lower, in a broad-based sell-off sparked by worries there won't be a US-China trade truce.

The benchmark S&P/ASX200 index was down 44.7 points, or 0.78 per cent, at 5668.4 on Tuesday, while the broader All Ordinaries fell 0.83 per cent.

Tech, banks, energy and health care stocks all suffered significant losses, which CMC Markets chief strategist Michael McCarthy said reveals what the concerns of investors were.

"It's high growth internationally exposed stocks that were under pressure and also those stocks that are leveraged to the local economy," he told AAP.

Financial stocks weighed heaviest on the indices, with Westpac suffering the biggest loss of the big four lenders, down 1.2 per cent to $25.59, and ANZ the least, down 0.7 per cent to $26.17.
Macquarie Group dropped even further, losing 2.5 per cent to $113.41.

With the weight of concerns over global growth and lower oil prices, the energy sector dragged on the ASX.
Origin, Oil Search and Santos were between 1.6 and 2.2 per cent lower, while Woodside was down 0.5 per cent and Caltex was flat.

The materials sector also fell despite gains from a handful of its major players.

BHP rose 0.7 per cent to $31.83, Rio Tinto was 0.3 per cent higher at $73.71, and South32 was up 0.6 per cent to $3.23.
BlueScope was down 0.8 per cent to $11.98, while Fortescue Metals was unchanged at $4.10.

Computershare, Xero and Altium were between three and five per cent weaker, dragging the tech stocks to record the worst percentage loss on the market.

Health care benchmark CSL lost 1.1 per cent to $179.75 and offset gains to Cochlear and ResMed which were both less than half a per cent higher to $170.71 and $15.22 respectively.

Coles snapped a six day run of losses, closing 2.9 per cent higher, and lifted the consumer staples to join utilities as the only two sectors in positive territory.

The Australian dollar slumped after data released showed economic growth slowed to a below-expectation 0.3 per cent in the September quarter, and to 2.8 per cent over 12 months, which further dimmed the chance of any rise in interest rates.

The Aussie was buying 72.92 US cents at 1630 AEDT up from 73.70 US cents cents on Tuesday.

ON THE ASX:
* The benchmark S&P/ASX200 index closed down 44.7 points, or 0.78 per cent, at 5668.4
* The All Ordinaries was down 48.4 points, or 0.83 per cent, at 5749.1
* At 1630 AEDT, the SPI200 futures index was down 38 points, or 0.67 per cent, at 5662

CURRENCY SNAPSHOT AT 1630 AEDT:
One Australian dollar buys:
* 72.92 US cents, from 73.70 US cents cents on Tuesday
* 82.42 Japanese yen, from 83.34
* 64.40 euro cents, from 64.79
* 57.47 British pence, from 57.83
* 105.43 NZ cents, from 105.98

GOLD:
The spot price of gold in Sydney at 1630 AEDT was $US1235.28 per fine ounce, from $US1236.54 on Tuesday.

Global stocks fell on Wednesday, plagued by a flattening yield curve that sparked concerns about an economic slowdown in the United States and weakening expectations of a lasting U.S.-China trade truce, while the dollar steadied.

U.S. markets were closed to mark former President George H.W. Bush’s death, but the effect of Wall Street’s turmoil in the previous session, when New York-listed shares tumbled more than 3 percent, was felt in Asia and Europe.

The MSCI’s all-country index .MIWD00000PUS shed 0.5 percent.
Tuesday’s markets chaos came a day after equities boomed on optimism that China and the U.S. had temporarily called a tariff ceasefire to sort out their trade dispute. But doubts began soon after along with President Donald Trump threatening “major tariffs” on Chinese imports if his administration failed to reach an effective trade deal with Beijing.

“As I look into next year, most expectations for further gains have been pared back. Investors have gone from extended bullishness at the start of the year on equities to an uncomfortable neutrality,” said Paul O’Connor, head of multi-asset at Janus Henderson.

Trump’s comments, alongside the drop in U.S. stocks and bond yields, pushed Asian shares outside Japan .MIAPJ0000PUS 1.4 percent lower. The pan-European STOXX 600 index lost 1.16 percent.
Markets across the world have been rattled by recession fears, exemplified by the flattening U.S. Treasury yield curve.

The benchmark Treasury 10-year yield fell to its lowest point since mid-September on Tuesday, while the spread between the 10-year yield over its two-year counterpart also shrank to the smallest since the start of the financial crisis in January 2008. That signaled to some investors an approaching U.S. economic slowdown.

The flattening of the curve gained momentum after last week’s signal by the Federal Reserve that it may be nearing an end to its three-year rate-increase cycle.
The dollar steadied on Wednesday after it took a hard hit in the early reaction to recession concerns and the initial thaw in trade tensions between Washington and Beijing sapped demand for the safe-haven greenback.

The greenback rose 0.32 percent against the Japanese yen and the euro gave up all its early gains to trade down 0.04 percent against the dollar.

Gold, which moves inversely with the dollar, slipped on expectations of more rate hikes following remarks from a U.S. Federal Reserve official and as some investors booked profits after prices climbed to their highest in more than five weeks.

Palladium, on the other hand, surpassed the bullion for the first time in about 16 years, to hit a record high of $1,263.56 per ounce as higher speculative interest and larger supply deficit boosted the auto-catalyst metal.

Markets are also bracing for more news on Brexit. British Prime Minister Theresa May suffered embarrassing defeats on Tuesday, the start of five days of parliamentary debate over her plans to leave the European Union.

The pound rose off 17-month lows of $1.2659 GBP=D3 hit on Tuesday to around $1.2751, up 0.3 percent on the day, amid creeping optimism that Britain could opt to stay in the EU after all.

The threat of slowing economic activity also weighed on oil prices, but oil prices went higher on Wednesday ahead of a meeting of the world’s biggest exporters who will discuss cutting output to help shore up prices and curb excess supply.

Brent crude LCOc1 futures rose 39 cents to $62.47 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 37 cents to $53.62 a barrel.



Source: Netwealth Morning Business Roundup

Time for some Brekkie Wraps with your Coffee




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