Day Trading Pre-market Open – 22 May 2019

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    Good morning traders. Thanks @ttward, @Ravgnome & the aftermarket loungers. Did I see … dating advice in the AM lounge last night? Really never know what you're going to see on here. biggrin.png


    ASX Market Report


    The Australian share market has recouped early losses to finish higher for a fifth day, setting a fresh 11 1/2 year high following a strong performance by banks and property shares.


    The benchmark S&P/ASX200 index closed up 24 points, or 0.37 per cent, to 6,500.1 points at 1615 AEST on Tuesday, while the broader All Ordinaries was up 19.7 points, or 0.3 per cent, to 6,584.4.


    The banking sector was the biggest gainer, up 1.71 per cent, after the Reserve Bank of Australia indicated it would likely cut interest rates, possibly as soon as June. Also, the Australian Prudential Regulation Authority proposed loosening the rules around home loans to allow people to borrow more. "It's been the narrative of the day," IG markets analyst Kyle Rodda said of the two developments. "It was received well by the market."


    Commonwealth Bank was up two per cent to $78.97, Westpac was up 2.7 per cent to $28.50, ANZ was up 2.1 per cent to $28.43 and NAB was up 1.5 per cent to $26.20.


    Telcos also gained, up collectively 0.8 per cent, with Telstra up 1.4 per cent to $3.59, and property trusts rose 1.58 per cent.


    But every other sector was down, with tech shares tumbling 3.5 per cent as a whole. Afterpay Touch was down 4.9 per cent to $24.70 after buy-now, pay-later competitor Zip signed a partnership with Kmart Australia. Zip shares were up 5.7 per cent to $3.88.


    Computershare shares fell to 8.5 per cent to $16.47, their lowest level of the year, after the stock transfer company disclosed issues with its United Kingdom operations. Software-as-a-service company Technology One shares dropped 13.5 per cent to $7.83, a two-month low, after it said its profit for the six months ended March 31 was up 130 per cent to $24.5 million.


    Shares in consumer staples fell 1.42 per cent as a whole, with Woolworths down 3.07 per cent to $33.75, and Treasury Wine Estate down 1.35 per cent to $15.31.


    Mining giant BHP was down 0.7 per cent to $37.94, while Rio Tinto fell 1.1 per cent to $101.27 and Fortescue Metals was down 2.4 per cent to $9.


    James Hardie was up 3.76 per cent to $18.50 after the construction materials company lifted full-year profit 57 per cent.


    Shares in Lynas Corp rocketed up 15 per cent to $2.27 before being placed in a trading halt late in the day, pending an announcement. Earlier, the rare earth miner said it would spend $500 million to build an upstream processing plant in Western Australia - either near its mine at Mt Weld or in the mining hub of Kalgoorlie - to resolve issues over waste disposal at its Malaysian operation that have threatened the renewal of its operating license.


    The talk of a cash rate cut - in both RBA minutes and a speech by RBA Governor Philip Lowe - pushed the Aussie dollar even lower.


    At 1703 AEST the Aussie was buying 68.79 US cents, from 69.26 US cents on Monday.


    ON THE ASX:

    * The benchmark S&P/ASX200 index was up 24 points, or 0.37 per cent, to 6,500.1 points at 1630 AEST on Tuesday.

    * The All Ordinaries was up 19.7 points, or 0.3 per cent, to 6584.4.

    * At 1630 AEST, the SPI200 futures index was flat at 6495.


    CURRENCY SNAPSHOT AT 1630 AEST:

    One Australian dollar buys:

    * 68.79 US cents, from 69.26 US cents on Monday

    * 75.80 Japanese yen, from 76.29 yen

    * 61.70 euro cents, from 62.09 euro cents

    * 54.13 British pence, from 54.41 pence

    * 105.57 NZ cents, from 105.90 cents


    Global Markets Report


    The US dollar rose and global equity markets advanced on Tuesday, led by chipmakers and companies exposed to Asia, after the United States temporarily eased trade restrictions on China’s Huawei Technologies Co Ltd.


    Major European and Chinese stock indices rose after the Commerce Department late on Monday allowed Huawei to buy U.S. goods until Aug. 19 to maintain existing telecoms networks and provide software updates to its smartphones.


    The Trump administration is very sensitive to stock market declines and the Huawei stay of execution may provide short-lived relief, said Kristina Hooper, chief global market strategist at Invesco in New York. The temporary easing of the Huawei restrictions is an attempt to create positive news flow similar to last week’s dropping of tariffs on Canadian and Mexican steel, she said. “The 800-pound gorilla is U.S.-China trade relations and those are deteriorating,” Hooper said. “We might get positive news on relatively small trade developments like this extension for Huawei, but that doesn’t change the bigger picture in regard to the U.S. and China.”


    Shares of U.S. suppliers to Huawei, including Qualcomm Inc, Intel Corp and Lumentum Holdings Inc rose more than 2%, as did the PHLX Semiconductor Index.


    In Europe, the tech sector closed 1.59% higher, with all but one of its 29 companies gaining. Germany’s trade-sensitive DAX rose 0.9%. European chipmakers AMS AG of Austria, Franco-Italian STMicroelectronics and Germany’s Infineon all advanced. The autos and suppliers sector in Europe pared some gains to rise just 0.24%, a sign investors are not too hopeful overall of trade tensions being defused.


    MSCI’s gauge of stock performance in 47 countries gained 0.56% and the pan-European FTSEurofirst 300 index of leading regional shares closed up 0.53%. Earlier in Asia, China’s Shanghai Composite index closed up 1.23% and the blue-chip CSI300 index ended 1.35% higher. On Wall Street, the Dow Jones Industrial Average rose 197.43 points, or 0.77%, to 25,877.33. The S&P 500 gained 24.13 points, or 0.85%, to 2,864.36 and the Nasdaq Composite added 83.35 points, or 1.08%, to 7,785.72.


    Signs that Asia is feeling the pinch from the U.S.-Sino trade spat pushed the dollar to a four-week high, with higher U.S. Treasury yields helping support the move. Data showed economic growth in Singapore was its lowest in nearly a decade in the first quarter, while in Thailand it was at its lowest in four years, raising worries that major Asian economies are getting hurt by global trade tensions.


    The dollar index rose 0.1%, with the euro down 0.08% to $1.1161. The Japanese yen weakened 0.43% versus the greenback at 110.56 per dollar.


    U.S. Treasury yields edged higher, lifted by equity market gains and higher risk appetite overall after the United States eased the trade restrictions imposed on Huawei last week. The move was a step in the right direction in terms of calming escalating trade tensions. “This is partly optimism in equities causing a reversal of the moves we saw last week,” said Subadra Rajappa, head of U.S. rates strategy at Societe Generale in New York, as well as a reduction in the markets’ rate cut forecasts. “There’s optimism about progress in the ongoing U.S.-China trade talks,” she added. Benchmark 10-year notes last fell 4/32 in price to yield 2.4281%.


    Brent crude, the international benchmark, and West Texas Intermediate, the U.S. oil standard, retreated on concerns that a prolonged U.S.-China trade war could lead to a global economic slowdown. Oil futures were flat as the prospect of U.S.-Iran tensions disrupting supply was offset by concerns that a drawn-out trade war between Washington and Beijing would weigh on crude demand. Brent crude futures settled up 21 cents at $72.18 per barrel. U.S. crude slid 11 cents to settle at $62.99 per barrel.


    Gold prices dropped to a more than two-week low as investors opted for the dollar while an improved appetite for riskier assets dented the appeal of bullion. U.S. gold futures settled down 0.3% at 1,273.2 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.


    Slightly healthier breakfast after yesterdays whopper.


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    Last edited by Bugsam: 22/05/19
 
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