Morning (AM) Market Report

Details

Published on Monday, 12 September 2016 00:00

U.S. shares fell sharply on Friday, with both the S&P 500 and Dow Jones dropping below their 50-day moving averages after a Federal Reserve official warned that waiting too long to raise rates threatened to overheat the economy, media reports said.

Monday, 12th September, 2016

Falls in telecommunications and utilities contributed to the rout along with falls in government bonds, after Boston Fed President Eric Rosengren said the Fed could resume gradual rate increases as the risks facing the economy are more in balance, reigniting Wall Street's fears about the end of easy-money policies.

At the closing bell, the Dow Jones, S&P 500 and NASDAQ were down 2.1%, 2.4% and 2.5%, respectively.

Lexicon (LXRX) met its primary endpoint in its first Phase 3 study of SGLT1/SGLT2 inhibitor sotagliflozin, and analysts view it as a 70% probability of approval of the drug in type 1 diabetes. This is the first oral drug to succeed in the type 1 diabetes setting, and puts Lexicon and partner Sanofi in position for the first approval, potentially a few months ahead of competition from Astra (Farxiga) and Lilly (Jardiance).

For Australian ADRs listed on the NYSE, BHP Billiton fell 47 cents (-1.51%) to $30.74, ResMed dropped $1.61 (-2.4%) to $65.45, Telstra Corporation lost 62 cents (-3.16%) to $19.00 and Westpac declined 85 cents (-3.72%) to $22.00. At 8:15 am (AEST), the 10-year Treasury note yield was 1.67% and the 5-year yield was 1.22%.

European markets fell on Friday. The FTSE 100, French CAC 40 and Germany's DAX dropped 1.2%, 1.1%, and 0.9%, respectively. Asian markets finished mixed. The Hang Seng was up 0.7%, the Nikkei 225 was flat and the Shanghai Composite fell 0.5%. India's Sensex fell 0.8%.

Ahead of the local open, SPI futures were 79 points lower at 5,246.