Day Trading Pre Open - 17 October 2018

Good Morning Fellow Traders,

Thanks @Trees (seems like old times) @Ravgnome and AM Loungers.

Look away @taughtbuffet. Brazil defeated Argentina 1-0; World Cup champions France won against Germany 2-1 whilst the Belgium vs The Netherlands match ended in a 1-1 draw.

The resurgent mining and financial sectors have lifted the Australian share market due to stronger commodity prices.

The benchmark S&P/ASX200 index was up 32.8 points, or 0.56 per cent, at 5869.9 points on Tuesday while the broader All Ordinaries was up 29.8 points, or 0.5 per cent, at 5977.8.

The financial sector had its best day for the month, which stabilised the share market, but it was the mining stocks which did most of the heavy lifting, Pepperstone head of research Chris Weston said.

"There continues to be a relatively healthy bid in the materials space and that's a reflection that some people are seeing more positive flows into gold, oil prices are holding up nicely and copper prices are moving sideways," he said.

Iron ore futures could potentially move higher also, Mr Weston said.

The materials sector was buoyed by BHP, up 1.7 per cent to $33.90, following news it had upped its share in SolGold, bolstering its position against top shareholder Newcrest Mining as it eyes SolGold's promising Cascabel copper-gold project in Ecuador.

Fellow giant Rio Tinto was also up, gaining 1.6 per cent to $78.70, despite its third-quarter iron ore shipments falling five per cent on planned maintenance and safety pauses following a fatality.

Strong gold prices kept local gold miners up, except for St Barbara, which dropped 1.5 per cent to $3.99.

The financial sector fell away after a strong start to the day, closing 0.6 per cent higher.
Westpac had the strongest gains of the big four banks, up 0.6 per cent to $26.18, while Commonwealth Bank had the least, up 0.2 per cent to $65.77.
Suncorp's shares were up 3.2 per cent to $13.82 after reports it was planning to sell its general insurance distribution arm Resilium.

Energy stocks were flat despite a rise in oil prices, while healthcare shares also closed lower.

The telco sector pared back earlier gains with Telstra losing one per cent to $3.07 in the wake of its annual general meeting where it suffered a first strike from shareholders opposed to its remuneration report.

Chairman John Mullen admitted executive salaries are too high "across the board" but said he was disappointed with the rejection of a plan that cuts bonuses by 30 per cent for a year in which dividends fell nearly a third.

The Australian dollar dipped slightly after the minutes of the Reserve Bank of Australia were released, which detailed the RBA was watching whether tighter lending standards as a result of the financial services royal commission adversely affects the broader economy.

The Aussie was buying 71.22 US cents, from 71.05 on Monday.

ON THE ASX:
* The S&P/ASX200 was up 32.8 points, or 0.56 per cent, at 5869.9 points.
* The All Ordinaries was up 29.8 points, or 0.5 per cent, at 5977.8
* In futures trading the SPI200 futures index was up 36 points, or 0.62 per cent, at 5854.0 points at 1630 AEDT.

CURRENCY SNAPSHOT AT 1630 AEDT:
One Australian dollar buys:
* 71.22 US cents, from 71.05 US cents on Monday
* 79.86 Japanese yen, from 79.56
* 61.58 euro cents, from 61.50
* 54.18 British pence, from 54.18
* 108.50 NZ cents, from 109.26

GOLD:
The spot price of gold in Sydney at 1630 AEDT was $US1225.66 per fine ounce, up from $US1222.12 on Monday.

U.S. stocks surged on Tuesday after upbeat earnings reports from major companies including UnitedHealth and Goldman Sachs and solid economic data, as equities rebounded from a recent sharp sell-off.

Wall Street’s three major indexes gained more than 1.5 percent each, with the Nasdaq up well over 2 percent.

Technology, which sold off heavily in the recent pullback, led the gains as all 11 major sectors were positive.
The gains marked a partial recovery from Wall Street’s recent steep slump. The S&P 500 last week posted its biggest weekly drop since March after a spike in bond yields and fresh concerns about global trade tensions.

“It’s mostly an oversold bounce,” Willie Delwiche, investment strategist at Baird in Milwaukee, said of Tuesday’s gains.

“The degree of the move is a function of the moves we have seen already this month more than anything else.”

The Dow Jones Industrial Average rose 465.52 points, or 1.84 percent, to 25,716.07, the S&P 500 gained 50.11 points, or 1.82 percent, to 2,800.9 and the Nasdaq Composite added 181.82 points, or 2.45 percent, to 7,612.56.

The technology sector gained 2.6 percent while healthcare rose 2.5 percent. Those two groups have led the S&P 500’s advance this year.

Investors are expecting another strong quarter of corporate profits, hoping the reports can calm nerves following concerns over tariffs and rising bond yields. Third-quarter earnings for S&P 500 companies are expected to have climbed 21.8 percent, according to I/B/E/S data from Refinitiv.

Goldman Sachs and Morgan Stanley reported better-than-expected quarterly profits, helped by strength in stock trading and equity underwriting, wrapping up a strong quarter for the big U.S. banks. Goldman shares rose 2.4 percent, while Morgan Stanley shares gained 5.3 percent.

In economic data, U.S. industrial production increased for a fourth straight month in September, boosted by gains in manufacturing and mining output, while other data showed job openings hit a record high in August.

Advancing issues outnumbered declining ones on the NYSE by a 5.48-to-1 ratio; on Nasdaq, a 3.80-to-1 ratio favored advancers.
The S&P 500 posted 4 new 52-week highs and 7 new lows; the Nasdaq Composite recorded 16 new highs and 61 new lows.

Source: Netwealth Morning Business Roundup

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