Day Trading Pre Open - 07 December 2018

Good Morning Fellow Traders,

Thanks @Ravgnome and AM Loungers. Shout out to @mirren who dropped in again last night with some good advice.

@Endless has found a novel way to daytrade by making dares. Not sure I want to go down that path ...

The Australian share market closed lower, as nervousness about the US economy and the tentative trade stalemate between China and the US weighed on stocks.

The benchmark S&P/ASX200 index dropped 10.8 points, or 0.19 per cent, to 5657.6 on Thursday, while the broader All Ordinaries fell 0.22 per cent after the US markets took the session off to mark the funeral of former US President George Bush Sr.

Wall Street may have taken the day off but domestic and international economics out of the US continues to drag on the local indices, CommSec chief market analyst Steven Daghlian.

"There's still plenty of concerns for the outlook of the US economy, interest rates in America, and doubts over how close the US and China are to breaching a meaningful trade deal," he told AAP.

Global miner BHP fell 1.4 per cent to $31.40 and Rio Tinto dropped two per cent to $72.21 after iron ore prices lifted overnight, but copper slumped.

South32 was further in the red, losing 3.4 per cent to $3.12, while Fortescue Metals and BlueScope Steel lost 1.2 and 1.1 per cent respectively.

Northern Star lead the gains for the gold miners, up nearly four per cent to $8.20, as precious metals prices remained buoyant.

The big four banks had mixed results with ANZ suffering the heaviest loss, down 1.9 per cent to $25.67, while Westpac was the only of those lenders in the black, up 0.3 per cent to $25.67.

Bank of Queensland shares were unchanged at $9.77 after announcing its group executive of business, Brendan White, will leave the company to become the chief executive of Cash Converters.

Freedom Insurance Group's shares nearly halved to 2.6 cents following its announcement it may face a liquidity shortfall in 2019 with $4 million in customer remediations and no new business commissions sending its stock to a fresh low.

Energy shares were also a drag, led by Santos, Beach Energy and Soul Pattinson closing between 0.6 and 1.4 per cent lower.

Supermarket giant Coles, up 2.4 per cent to $12.10, lifted the consumer staples into the black, while rival Woolworths was 0.2 per cent higher at $29.02.

Telco, utilities, property and industrials were the other sectors to close higher.

Meanwhile, October retail spending has beaten market expectations, with the 0.3 per cent monthly rise driven by cash dropped on clothing, footwear and personal accessories, as well as a rise for department stores.

But the Australian dollar slipped for a third straight session over those fears of renewed trade tensions between the US and China.
The Aussie was buying 72.27 US cents at 1630 AEDT from 72.92 on Wednesday.

ON THE ASX:
* The benchmark S&P/ASX200 index closed down 10.8 points, or 0.19 per cent, to 5657.6
* The All Ordinaries was down 12.4 points, or 0.22 per cent, at 5736.7
* At 1630 AEDT, the SPI200 futures index was down eight points, or 0.14 per cent, at 5655

CURRENCY SNAPSHOT AT 1630 AEDT:
One Australian dollar buys:
* 72.27 US cents, from 72.92 US cents cents on Wednesday
* 81.43 Japanese yen, from 82.42
* 63.68 euro cents, from 64.40
* 56.79 British pence, from 57.47
* 105.19 NZ cents, from 105.43

GOLD:
The spot price of gold in Sydney at 1630 AEDT was $US1239.45 per fine ounce, from $US1235.28 on Wednesday.

The S&P 500 and the Dow Jones Industrial Average slipped back to losses for the year on Thursday, as U.S. stocks fell on mounting worries of slowing global growth after a fresh twist in China-U.S. tensions as well as lower oil prices and U.S. bond yields.

The arrest of Chinese smartphone maker Huawei Technologies Co Ltd’s chief financial officer at the request of the United States cast fresh doubts over the prospect of Beijing and Washington striking a deal on trade tariffs in their 90-day truce period.

“Markets are extremely sensitive to any news regarding trade. The potential slowdown in global growth is also something the markets are pricing in,” said Massud Ghaussy, senior analyst at Nasdaq IR Intelligence in New York.

The Dow and the S&P were down more than 1.5 percent, tracking 0.4 percent losses for the year despite coming well off their session lows. The two indexes and the Nasdaq had tumbled more than 3 percent each on Tuesday.

Optimism after the trade truce over the weekend boosted Wall Street on Monday, extending a rally from last week when the Federal Reserve signaled a slower pace of interest rate hikes.
But that optimism faded on Tuesday and, along with a drop in longer-dated U.S Treasury yields, triggered a slide in equities that continued on Thursday. Markets were closed on Wednesday.

The benchmark 10-year Treasury yield held at three-month lows as traders bet on fewer rate hikes after data showed U.S. trade deficit hit a 10-year high in October and that the pace of job growth was moderating. [US/]
“We have a repricing of risk as shown in rising bonds (prices), but is obviously adding to the negativity in equities,” said Ghaussy.

Crude oil prices fell after an OPEC meeting in Vienna over production policy ended without a decision. Earlier the group signaled it may agree to a smaller cut than expected. [O/R]

All the 11 major S&P sectors were in the red. Technology .SPLRCT fell 0.90 percent, energy .SPNY 3.27 percent and the trade-sensitive industrials .SPLRCI 2.07 percent.

The biggest drag came from a 2.90-percent slump in financials .SPSY as bond yields fell and bets of a rate hike were pushed lower.

At 1:02 p.m. ET, the .DJI was down 450.24 points, or 1.80 percent, at 24,576.83, the S&P 500 .SPX was down 39.13 points, or 1.45 percent, at 2,660.93 and the Nasdaq Composite .IXIC was down 40.15 points, or 0.56 percent, at 7,118.28.

The CBOE Volatility Index .VIX, the most widely followed barometer of expected near-term volatility for the S&P, jumped to its highest since Oct. 29.

Apple Inc (AAPL.O) fell 1.8 percent and was the biggest drag on the S&P and the Nasdaq, while Boeing Co’s (BA.N) 4.5 percent decline weighed the most on the Dow.

Gains in Facebook Inc (FB.O), Google-parent Alphabet Inc (GOOGL.O) and Netflix Inc (NFLX.O) kept the communication services sector .SPLRCL flat.

Declining issues outnumbered advancers for a 3.38-to-1 ratio on the NYSE and a 2.20-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and 70 new lows. The Nasdaq recorded eight new highs and 337 new lows.

Source: Netwealth Morning Business Roundup



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