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Morning (AM) Market Report

U.S. markets finished higher overnight as the Dow ended above 23,000 for the first time ever, buoyed by positive corporate earnings led by IBM.

Thursday, 19th October, 2017

In economic news, a housing industry report showed that permits and home starts were both down in September. Permits fell by 4.5% on the month to 1.27 million, while starts fell by 4.7% to 1.13 million, according to the Commerce Department.

At the closing bell, the Dow Jones was 0.7% higher, the S&P 500 was up 0.1%, and the Nasdaq finished relatively flat.

IBM (IBM) reported a solid third-quarter result and notably improved its revenue trajectory. There are early signs pointing to an improved outlook for the Systems business based on good demand for IBM's new z14 mainframe and storage products. Atlas Copco's (ATKLY) third-quarter results surprised on the upside on margins. Around 9% year-to-date volume growth across its portfolio of mining, tooling, and excavation equipment has expanded the company's nine-month EBIT margin by 180 basis points year over year. RB's (RBGLY) third-quarter trading update showed that the firm is performing in line with expectations for the full year on an organic basis. The bigger news, however, was the announcement of a restructuring of the business. From the first quarter of 2018, RB will operate under two business units: RB Health, which will incorporate the former Mead Johnson business as well as the legacy health portfolio, and RB Hygiene Home, which will comprise everything else.

For Australian ADRs listed on the NYSE, BHP Billiton lost 92 cents (-2.17%) to $41.50, ResMed gained 44 cents (0.56%) to $78.87, Telstra Corporation slipped 19 cents (-1.41%) to $13.65 and Westpac declined 6 cents (-0.23%) to $26.06. At 7:45 am the 10-year Treasury note yield was 2.34% and the 5-year yield was 1.99%.

European markets finished higher on Wednesday. The FTSE 100, the French CAC 40, and Germany's DAX were all up 0.4%. Asian markets ended mostly higher on Wednesday. The Hang Seng was up 0.1% and the Shanghai Composite rose 0.3%, while the Nikkei 225 lifted 0.1%. India's Sensex fell 0.1%.

Ahead of the local open, SPI futures were 2 points lower at 5,868.

Foreign Equities Close Change % Change 
Dow Jones (US)  23158

160

0.70
FTSE 100 Index 7543 27 0.36
HKSE 28712 14 0.05
NASDAQ 6624 1 0.01
Nikkei 225 (Japan) 21363 27 0.13
NZ50 8107 -8 -0.1
S&P 500  2561 2 0.07
Commodities US$ Close Change % Change 
Aluminium  /t 3mth 2102 -14 -0.65
Copper  /t 3mth 6494 -47 -0.67
Gold  /oz 3mth 1276 -3 -0.24
Lead  /t 3mth 2507 32 1.28
Nickel  /t 3mth 11586 -116

-1.00

Oil - West Texas Crude  /t 3mth 52.3 0.2 0.29
Zinc  /t 3mth 3179 69 2.23
Currency Close Pts Change % Change 
$A vs $US 0.7847 -0.0002 -0.03
$A vs GBP 0.5943 -0.0005 -0.08
$A vs EUR 0.6654 -0.0013 -0.20
$A vs YEN 88.63 0.55 0.62
$A vs NZD 1.0967 0.0030 0.28