Morning (AM) Market Report

Details

Published on Friday, 14 October 2016 00:00

U.S. markets finished lower overnight on the back of weaker-than-expected Chinese trade data and falls in financials, which have been under pressure following recent negative news on Deutsche Bank and Wells Fargo.

Friday, 14th October, 2016

According to media reports, data showed China's exports fell 10% in September, far worse than markets had expected, while imports unexpectedly shrank.

At the closing bell, the Dow Jones and S&P were both down 0.3%, while the Nasdaq was 0.5% lower.

Ericsson LM Ericsson Telephone Co (ERIC) announced weaker-than-expected preliminary results for its third quarter as a result of strong headwinds in network coverage and capacity deployments of mobile broadband in Brazil, Russia, and the Middle East. Delta Air Lines' (DAL) shares fell after the company's revenue in the third quarter fell short of expectations. CSX Corp. (CSX) shares were up after the railroad operator delivered better-than-expected quarterly results.

For Australian ADRs listed on the NYSE, BHP Billiton slipped 96 cents (-2.74%) to $34.05, ResMed lost 21 cents (-0.33%) to $63.85, Telstra Corporation fell 10 cents (-0.52%) to $19.17 and Westpac declined 27 cents (-1.16%) to $22.99. At 8:00 am (AEDT), the 10-year Treasury note yield was 1.74% and the 5-year yield was 1.26%.

European markets closed lower on Thursday. The FTSE 100 was down 0.7%, the French CAC 40 fell 1.1% and Germany's DAX dropped by 1%. Asian markets finished mostly lower. The Hang Seng was down 1.6%, the Nikkei 225 fell 0.4%, while the Shanghai Composite rose 0.1%. India's Sensex fell 1.6%.

Ahead of the local open, SPI futures were 11 points higher at 5,426.