Day Trading Pre-market Open – 12 Apr 2019

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    Good morning traders, happy friday. Thanks @ttward, @Ravgnome & the aftermarket loungers.

    Yesterday we got a glimpse at that void which nothing ever escapes. No, not my trading account. Nor was it article 50 or the European union. No, it was a day to rejoice for science nerds, particularly those of the stargazing persuasion (of which I am one) with the first ever image of a black hole. It may not look like much, but I did spend much longer than socially acceptable staring at it and grinning like a fool.

    And there was that announcement of a date for the Aussie election early in the day. I give it one week until it’s “Australia's largest political discussion forum” again. But let’s try and sprinkle in a little bit of trading discussion in here if we can.

    ASX Market Report

    Australian shares have fallen, dragged down by share prices falls by the major miners and the big four banks amid dovish comments by US and European central banks.

    The benchmark S&P/ASX200 index closed down 24.8 points, or 0.4 per cent, to 6,198.7 points at 1615 AEST on Thursday, while the broader All Ordinaries was down 22.4 points, or 0.35 per cent, to 6,294.1.

    "Today's been a pretty weak session," CommSec market analyst James Tao said, adding that the market was likely responding to dovish minutes released by the US Federal Reserve and a decision by the European Central Bank to hold interest rates unchanged. Investors are realising that interest rates will probably won't change for the next six months, Mr Tao said.

    Health care stocks led decliners, down 0.91 per cent, with pharma giant CSL dropping 1.23 per cent to $199.

    All the big banks were in the red, with ANZ down 0.66 per cent to $25.51, NAB down 0.77 per cent to $24.44, Commonwealth down 0.69 per cent to $70.26 and Westpac down 1.27 per cent to $25.57. Bank of Queensland dropped 4.89 per cent to $8.95 after the regional lender cut its dividend following an eight per cent slide in first-half cash earnings to $167 million. Netwealth dropped 4.63 per cent to $8.65 despite the financial services company reporting its fund under administration had increased by $2.1 billion, to $21.1 billion, in the three months to March 31.

    The materials sector was down 0.91 per cent after a pullback in commodity prices, with BHP down 0.63 per cent to $39.64, South32 down 3.24 per cent to $3.58, Fortescue Metals down 1.59 per cent to $8.04 and Rio Tinto down 1.33 per cent to $100.48. Whitehaven Coal gained 0.5 per cent to $4 after reporting that demand for high-quality coal in its key markets of Japan, Korea, India and Taiwan was still strong, with sales up 12 per cent for the quarter.

    Crown Resorts gained 2.66 per cent to $13.11, bouncing back a day after its shares fell 9.11 per cent following Wynn Resorts pulling the plug on its $10 billion takeover offer.


    * The benchmark S&P/ASX200 index was down 24.8 points, or 0.4 per cent, to 6,198.7 points at 1630 AEST on Thursday.

    * The All Ordinaries was down 22.4 points, or 0.35 per cent, to 6,294.1.

    * At 1630 AEST, the SPI200 futures index was down 23 points, or 0.37 per cent, to 6,185.


    One Australian dollar buys:

    * 71.61 US cents, from 71.48 US on Wednesday

    * 79.55 Japanese yen, from 79.44 yen

    * 63.49 euro cents, from 63.41 euro cents

    * 54.72 British pence, from 54.68 pence

    * 105.96 NZ cents, from 105.85 cents

    Global Markets Report

    A gauge of global equity markets slid on Thursday as investors waited for first-quarter earnings reports, while Treasury yields rose after strong U.S. data and a six-month extension of a deadline for Britain to leave the European Union. Asian stocks stepped back from near eight-month highs and the dollar eased as cautious European and U.S. central banks reinforced investors’ worries about the slowing global economy and trade protectionism.

    MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.4 percent after four straight days of gains took it to the highest since last August. Japan’s Nikkei reversed early losses to end 0.1 percent higher.

    Losses in Asia were led by Chinese shares, with the blue-chip CSI300 index off 1.7 percent while Hong Kong’s Hang Seng index stumbled 0.7 percent.

    Australian shares also lost ground, pressured by political uncertainty after the prime minister called a national election for May 18. “Traders continue to operate in a ‘wait and watch’ mode as they look for the next opportunity in a cautious market,” said Nick Twidale, Sydney-based analyst at Rakuten Securities Australia. “Two big event risks are now behind us with the ECB and Fed.” But, Twidale said, investors were still on the lookout for a trigger that would push markets out of their familiar trading ranges.

    The dollar index rose as worries about the world’s largest economy eased after U.S. data showed March producer prices increased by the most in five months and weekly jobless claims fell to the lowest since 1969. The data followed a decision by EU leaders to push the Brexit deadline to Oct. 31 so that Britain would not crash out of the bloc on Friday without a treaty - though it offered scant clarity on when, how or if departure will happen.

    Regional and country indexes in Europe rose but Wall Street retreated as investors awaited the first-quarter U.S. earnings season, which starts in earnest on Friday. Profit estimates have dropped steadily in the last six months, with earnings by S&P 500 companies expected to fall 2.5% and mark the first year-on-year decline since 2016, according to Refinitiv data. “The big elephant out there is earnings. Street estimates are for a year-over-year decline despite higher revenue and that’s driven by a handful of large companies that are heavily weighted, so it could be a bit deceiving,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. “Often the market will just wait it out when we start to get close to earnings.”

    MSCI’s gauge of stock market performance in 47 countries shed 0.17%, while the pan-European STOXX 600 index closed up 0.11%. France’s CAC 040, Germany’s DAX and Italy’s MIB all rose.

    European airline stocks rose, with the travel and leisure index rising 1.3%, after the Brexit extension. Irish stocks, which are especially sensitive to a potential hard Brexit, tacked on 0.6%.

    Trading volume on Wall Street was the lowest so far in 2019. The Dow Jones Industrial Average fell 14.11 points, or 0.05%, to 26,143.05. The S&P 500 gained 0.11 point, or 0.00%, to 2,888.32 and the Nasdaq Composite dropped 16.89 points, or 0.21%, to 7,947.36.


    In currency trading, the dollar index rose 0.23%, with the euro down 0.14% to $1.1257. The Japanese yen weakened 0.57% versus the greenback at 111.66 per dollar. Sterling fell 0.25% to $1.3056, suggesting fears remain about Brexit.

    Germany’s 10-year bond yield edged up toward 0.0% after the Brexit announcement, while a signal from the European Central Bank that it will fight low economic growth and inflation boosted peripheral debt. Germany’s 10-year bond yield was up 0.02 percentage point at negative 0.01%. U.S. Treasury benchmark 10-year notes last fell 6/32 in price to yield 2.5006%.

    Oil prices fell more than 1% after sources said the Organization of the Petroleum Exporting Countries may raise output from July if Venezuelan and Iranian supplies fall further and prices keep rallying. U.S. crude fell $1.03 to settle at $63.58 per barrel. Brent settled down 90 cents at $70.83.

    Gold prices fell more than 1%, slipping below the key $1,300 level, as robust economic data from the United States boosted the dollar, taking the sheen off the safe-haven metal. U.S. gold futures settled 1.6% lower at $1,293.3 an ounce.

    Please include the STOCK CODE in your post out of respect for your fellow traders, or use the OT (off topic) tag for non-stock related content.

    Today’s breakfast is…. Out of this world.


    I’ll grab my coat.

    Last edited by Bugsam: One last attempt to fix the formatting before I punt my computer out the window... 12/04/19
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