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Morning (AM) Market Report

The S&P 500 rallied through the 3300 mark for the first time overnight and the other US indexes also surged to record highs, fuelled by tech stocks, solid retail sales data and upbeat quarterly earnings from Morgan Stanley.

Friday, 17th January, 2020

China's yuan held steady while stocks fell after Beijing and Washington signed a phase one deal to defuse their trade war, with financial markets taking on a cautious tone as many thorny issues remained unresolved. The benchmark Shanghai Composite Index, which gained 7.6 percent from the end of November through to Wednesday's close, opened higher before stalling on profit-taking. It finished the day down 0.52 percent. The blue-chip CSI300 index fell 0.42 percent. In Hong Kong, the Hang Seng also oscillated between small gains and losses, but eked out a 0.38 percent gain on the day. The Hang Seng China Enterprises index rose 0.29 percent. In Japan, shares were little changed after the trade news. The Nikkei share average added 0.1 percent to 23,933.13, while the broader Topix eased 0.1 percent to 1728.72.

European shares rose after the US and China signed an eagerly awaited phase-one trade deal, giving some relief to markets that have been roiled by the 18-month standoff between the world's two-largest economies. The pan-European STOXX 600 index was up 0.3 percent by 0857 GMT. European utility stocks touched their highest levels since late-2008 on strength in power generator RWE. Shares of the company rose amid reports that the German government plans to compensate RWE with around 2.6 billion euros ($2.9 billion) for costs related to the country's planned coal exit.

The S&P 500 rallied through the 3300 mark and the other US indexes also surged to record highs, fuelled by tech stocks, solid retail sales data and upbeat quarterly earnings from Morgan Stanley. Morgan Stanley jumped 6.6 percent to lead the S&P 500 after it beat quarterly profit estimates and raised its performance goals, closing out several big US lenders' earnings on a strong note. Sentiment was further lifted by data that showed US retail sales rose 0.3 percent in December, in line with economists' estimates. The Dow Jones Industrial Average jumped 0.92 percent to end at 29,297.64 points, while the S&P 500 gained 0.84 percent to 3316.89. The Nasdaq Composite added 1.06 percent to 9357.13, bringing its gain in 2020 to 4.29 percent.

Ahead of the local open SPI futures are 36 points higher at 7025.

Foreign Equities Close Change % Change 
Dow Jones (US) 

29298

267

0.92
FTSE 100 Index 7610 -33 -0.43
HKSE 28883 109 0.38
NASDAQ 9357 98 1.06
Nikkei 225 (Japan) 23933 17 0.07
NZ50 11775 37 0.31
S&P 500  3317 28 0.84
Commodities US$ Close Change % Change 
Aluminium /t 1797 22 1.23
Copper  /t 6251 -1 -0.2
Gold /oz 1552 -4 -0.25
Nickel /t 13700 -540 -3.79
Oil - West Texas /bbl  58.5 0.7

1.23

Silver  /oz 17.9 -0.1 -0.33
Zinc /t  2441 43 1.77
Currency Close Pts Change % Change 
$A vs $US 0.6899 -0.0004 -0.06
$A vs GBP 0.5277 -0.0018 -0.34
$A vs EUR 0.6195 0.0004 0.06
$A vs YEN 76.00

0.13

0.17
$A vs NZD 1.0389 -0.0030 -0.29