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Morning (AM) Market Report

U.S. shares slipped overnight after technology shares continued to retreat, while a delay on a vote on healthcare legislation added to concerns about the prospects for President Donald Trump's agenda.

Wednesday, 28th June, 2017

Tuesday marked the second straight daily decline for the Nasdaq. The S&P 500 has fallen in four of the past six sessions while the Dow has dropped in five of the past six.

At the close, the Dow, S&P 500, and the Nasdaq were down 0.5%, 0.8%, and 1.6%, respectively.

The S&P/Case-Shiller 20-city index rose 5.7% in the three-month period ending in April compared with a year ago, down two ticks from the 5.9% annual gain notched in March. Economists had expected the 20-city index to increase 5.9% for the year. Separately, a read on consumer confidence rose slightly in June.

Mobile TeleSystems (MBT) announced its parent company, Sistema, received a notice of enforcement action from various Russian courts that in effect claim 31.76% of the share capital of Mobile TeleSystems. This would be almost two thirds of Sistema's roughly 50.3% shareholding. The shares are for settlement of a claim by Rosneft and Bashneft, Russian oil companies, and the Republic of Bashkortostan against a division of Sistema that is also involved in the oil industry. While disputes in the Russian oil industry are nothing new, this time it potentially spills into the telecom sector.

For Australian ADRs listed on the NYSE, BHP Billiton added 43 cents (1.27%) to $34.41, ResMed lost 66 cents (-0.85%) to $77.02, Telstra Corporation fell 9 cents (-0.55%) to $16.40 and Westpac lifted 4 cents (0.18%) to $22.89. At 8:15 am the 10-year Treasury note yield was 2.21% and the 5-year yield was 1.81%.

European markets were lower as the FTSE 100, the French CAC 40, and Germany's DAX declined 0.2%, 0.7%, and 0.8%, respectively. Asian shares finished mixed, with the Nikkei 225 and Shanghai Composite up 0.4% and 0.2%, respectively, and the Hang Seng and India's Sensex down around 0.1% and 0.6%, respectively.

Ahead of the local open, SPI futures were 12 points lower at 5,642.

Foreign Equities Close Change % Change 
Dow Jones (US)  21311

-99

-0.46
FTSE 100 Index 7434 -12 -0.17
HKSE 25840 -32 -0.12
NASDAQ 6147 -101 -1.61
Nikkei 225 (Japan) 20225 72 0.36
NZ50 7626 31 0.41
S&P 500  2419 -20 -0.81
Commodities US$ Close Change % Change 
Aluminium  /t 3mth 1877 22 1.17
Copper  /t 3mth 5838 67 1.16
Gold  /oz 3mth 1247 -3 -0.27
Lead  /t 3mth 2273 34 1.52
Nickel  /t 3mth 9213 239

2.66

Oil - West Texas Crude  /t 3mth 44.2 0.9 1.98
Zinc  /t 3mth 2747 30 1.11
Currency Close Pts Change % Change 
$A vs $US 0.7582 -0.0001 -0.02
$A vs GBP 0.5915 -0.0043 -0.72
$A vs EUR 0.6686 -0.0094 -1.39
$A vs YEN 85.11 0.30 0.35
$A vs NZD 1.0426 0.0024 0.23