Day tradng pre-market open September 11

  1. 9,472 Posts.

    Morning traders. Thanks @ttward and lounge lizards.

    Overnight round-up and day ahead:

    A late recovery on Wall Street points to a positive start to Australian trade for the first time this week.

    ASX SPI200 index futures rallied 17 points or 0.3 per cent to 6634 as US stocks eked out a slim gain.

    The S&P 500 was underwater until the final minutes of trade, closing a point or 0.03 per cent ahead as a cyclical rotation from growth stocks into value stocks played out for a second session. A similar rotation here yesterday saw the high-flying tech sector take a hit as the ASX 200 fell 34 points or 0.5 per cent.

    The Nasdaq declined for a third night and the Dow rallied for a fifth straight session as money continued to flow out of growth stocks (riskier companies with high expectations and blue-sky valuations, such as Facebook and Amazon) into value plays (well-established companies with solid fundamentals, such as industrials and materials). The Dow put on 74 points or 0.28 per cent, while the Nasdaq declined three points or 0.04 per cent. An exchange-traded fund of value companies gained 1.4 per cent overnight, while a momentum fund lost 1.5 per cent.

    This week's rotation has rattled some commentators because growth stocks provide the momentum that drives stock indices higher. The thinking is that if investors give up on growth stocks, markets can only go in one direction.

    ASX tech darlings bore the brunt of yesterday's Australian rotation. Wisetech and Appen both slumped more than 6 per cent. Afterpay gave up 4.1 per cent, Nearmap 4.7 per cent and Bravura Solutions 4.3 per cent. Oil companies and materials such as Santos, Whitehaven Coal and BHP soaked up some of the selling.

    The big two Australian miners benefitted from the overseas move, as well as an ongoing recovery in the price of iron ore. BHP's US-listed stock gained 1.23 per cent and its UK-listed stock 0.94 per cent. Rio Tinto added 0.9 per cent in the US and 0.77 per cent in the UK. The spot price for ore landed in China yesterday improved $1.25 or 1.4 per cent to $US93.20 a tonne, its highest level in a month.

    Oil suffered its first loss in five sessions as a shake-up at the White House raised hopes over the US's troubled relationship with Iran. Brent crude settled 21 cents or 0.3 per cent lower at $US62.38 a barrel following news that US National Security Adviser John Bolton had resigned. Bolton was seen as particularly hawkish on Iran. His departure clears the way for potential progress on sanctions on Iran, a major oil producer.

    Gold fell to a five-week low as a recovery in bond yields dulled the appeal of alternative investments. Gold for December delivery settled $11.90 or 0.8 per cent lower at $US1,499.20 an ounce.

    Copper inched higher during a broadly positive session on the London Metal Exchange. Copper put on 0.2 per cent, aluminium 1.2 per cent, lead 0.3 per cent, tin 0.6 per cent and zinc 1.2 per cent. Nickel finished flat.

    The dollar held broadly steady at 68.61 US cents.

    Looking ahead, local investors will find out if this morning if the mood among consumers last month was boosted by back-to-back rate cuts and record low interest rates: Westpac's consumer sentiment gauge is released at 10.30am Eastern Standard Time. Wall Street has producer inflation and oil inventory figures scheduled tonight, but the real action is not until tomorrow night with a much-anticipated European Central Bank policy statement.


    Today is National Hot Cross Bun Day in the US. (I can think of a more obvious time of year for this event, but let's run with it.)

    Last edited by highlandlad: 11/09/19
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