Morning (AM) Market Report (2)

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Published on Monday, 19 September 2016 00:00

U.S. stocks ended lower Friday with weak oil prices pressuring energy shares, as anxiety ahead of next week's central-bank meetings weighed on sentiment.

Monday, 19th September, 2016

The U.S. dollar advanced against both the euro and British pound on Friday, building on earlier strength that came on data showing a sharper-than-expected increase in consumer prices. Gold futures finished at their lowest level in almost three months on Friday, logging a seventh drop in eight sessions to finish the week with a nearly 2% loss.

At the close, the Dow Jones, S&P 500 and Nasdaq were 0.5%, 0.4% and 0.1% lower respectively.

Range Resources (RRC) announced the closing of its merger with Memorial Resource Development on Sept. 16. Our current model reflects the combination of Range and Memorial, and as a result, there is no change to our fair value estimate of $38 per share for Range (Memorial will cease trading). Our no-moat rating for the combined company is unchanged.

For Australian ADRs listed on the NYSE, BHP Billiton slipped 61 cents (-1.99%) to $29.97, ResMed lost 50 cents (-0.77%) to $64.46, Telstra Corporation added 15 cents (0.82%) to $19.10, Spark New Zealand gained 22 cents (1.64%) to $13.35 and Westpac declined 14 cents (-0.63%) to $22.07. At 7:45 am (AEST), the 10-year Treasury note yield was 1.69% and the 5-year yield was 1.20%.

European stocks were lower. European shares fell on Friday to a six-week low as Deutsche Bank was hit with a $14 billion offer to settle an investigation into sales of mortgage back securities. The DAX, CAC 40 and FTSE were 1.5%, 0.9% and 0.3% lower respectively. Asian shares were mixed. The Nikkei 225 and the Hang Seng were up 0.7% and 0.6% while the Shanghai Composite ended 0.7% lower. India's Sensex was 0.7% higher.

Ahead of the local open SPI futures had no change to remain at 5,275.