Morning (AM) Market Report

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Published on Tuesday, 13 September 2016 00:00

U.S. stocks finished higher overnight after a bumpy start and a sharp sell-off on Friday, when stocks logged their worst losses since Brexit following mixed signals from Federal Reserve officials regarding possible interest-rate increases.

Tuesday, 13th September, 2016

According to media reports, Federal Reserve Bank of Atlanta president Dennis Lockhart believes the Fed is likely to hold a "lively discussion" on whether or not to raise interest rates next week, in light of current economic data. Meanwhile, Fed Governor Lael Brainard called for "prudence" in interest-rate policy during a speech on Monday.

At the closing bell, the Dow Jones, S&P 500 and NASDAQ were up 1.3%, 1.5% and 1.7%, respectively.

Shares of Tesla Motors (TSLA) were up after the electric car maker announced an upgrade for its Autopilot feature that could improve the safety of its semiautonomous driving system. Norwegian multinational telco Telenor (TELNY) announced plans to sell about 24.5% of its one-third shareholding in VimpelCom's VIP ADSs. This is a departure from the firm's announcement in October 2015 of its plans to sell the entire stake in VimpelCom.

For Australian ADRs listed on the NYSE, BHP Billiton rose 28 cents (0.91%) to $31.02, ResMed was up 18 cents (0.27%) to $65.64, Telstra Corporation rose 5 cents (0.26%) to $19.05 and Westpac gained 26 cents (1.18%) to $22.30. At 7:45 am (AEST), the 10-year Treasury note yield was 1.66% and the 5-year yield was 1.2%.

European markets fell sharply on Monday, extending Friday's losses and posting their biggest drop in nearly three months. The FTSE 100 and French CAC 40 both fell around 1.1%, while Germany's DAX fell 1.3%. Asian markets also fell sharply on Monday. The Hang Seng, Nikkei 225 and Shanghai Composite fell 3.4%, 1.7% and 1.8%, respectively. India's Sensex fell 1.5%.

Ahead of the local open, SPI futures were 79 points higher at 5,280.00.