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Overseas Market Report - U.S. Shares Record Longest Winning Streak Since 1987

Monday 27 February 2017 | Close

U.S. stocks started in negative territory on Monday but an afternoon rally in energy and financial stocks pushed the market into positive territory ahead of President Trump's address to Congress on Tuesday.

Monday 27 February 2017 | Close

Foreign Equities Close Change %Change
Dow Jones (US) 20838 16 0.08
S&P 500 2370 2 0.10
NASDAQ 5862 17 0.28
FTSE 100 Index 7253 9 0.13
DAX 30 11823 19 0.16
CAC 40 4845 0 -0.00
Nikkei 225 (Japan) 19107 -176 -0.91
HKSE 23925 -41 -0.17
SSE Composite Index 3229 -25 -0.76
NZ 50 7079 14 0.19

Monday 27 February 2017 | Close

Commodities US$ Close Change %Change
Aluminium /t 1900 14 0.73
Copper /t 5924 9 0.15
Nickel /t 10993 185 1.71
Gold /oz 1252 -2 -0.20
Silver /oz 18.3 -0.1 -0.40
Oil - West Texas crude /bbl 54.0 0.1 0.11
Lead /t 2252 0 -0.01
Zinc /t 2801 -24 -0.86

Monday 27 February 2017 | Close

Currency Close Pts Change % Change
$A vs $US 0.7676 0.0007 0.10
$A vs GBP 0.6170 -0.0015 -0.24
$A vs YEN 86.50 0.46 0.53
$A vs EUR 0.7248 -0.0018 -0.24
$A vs $NZ 1.0664 0.0012 0.11
$US vs Euro 0.9443 -0.0033 -0.34
$US vs UK 0.8038 -0.0026 -0.32
$US vs CHF 1.0089 0.0004 0.04

U.S. stocks started in negative territory on Monday but an afternoon rally in energy and financial stocks pushed the market into positive territory ahead of President Trump's address to Congress on Tuesday.

The Dow notched up a twelfth straight record close, media reports said, equalling its longest winning streak since 1987.

In his address, President Trump is expected to provide further details on his plans to overhaul the tax code and healthcare system but won't seek changes to social security or Medicare.

Gold edged higher to a third session gain while oil remained steady as the number of active oil rigs in the U.S. rose.

In the latest economic data, durable goods orders rose 1.8% in January, although this was entirely due to transport with a spike in contracts for commercial jets and military planes.

Absent that category, orders fell 0.2% in the month. Pending-home sales slumped in January as the market succumbed to inventory that is too low to satisfy demand.

At the closing bell, the Dow Jones and the S&P 500 both were both up 0.1%, while the Nasdaq was 0.3% higher.

ServiceNow (NOW) announced that president, CEO, and chairman of the board Frank Slootman will be stepping down from his CEO and management responsibilities effective April 3, 2017. Slootman will continue in his role of chairman of the board moving forward. In his place, ServiceNow has tapped former eBay CEO John Donahoe to lead the company, whose reputation for successful tech leadership precedes him.

VimpelCom (VIP) reported mixed 2016 results with weaker revenue, but better margins. The firm's reported revenue fell 7.5% year over year, however, the fourth quarter showed much more stable economies and currencies. The company also announced it intends to change its name to Veon and its symbol to VEON, assuming it receives shareholder approval on March 30. It will also pursue a listing on the Amsterdam stock exchange.

For Australian ADRs listed on the NYSE, BHP Billiton rose 62 cents (1.63%) to $38.59, ResMed gained 6 cents (0.08%) to $72.02, Telstra Corporation added 3 cents (0.19%) to $17.98, Spark New Zealand lost 10 cents (-0.78%) to $12.65 and Westpac declined 11 cents (-0.42%) to $25.99.

At 7:45 AM (AEDT), the 10-year Treasury note yield was 2.36% and the 5-year yield was 1.87%.

European markets finished mixed on Monday.

The FTSE 100 rose 0.1%, the French CAC 40 was flat, and Germany's DAX rose 0.2%.

Asian markets fell on Monday.

The Hang Seng, Nikkei 225, and Shanghai Composite fell 0.2%, 0.9% and 0.8%, respectively. India's Sensex fell 0.3%.

Australian Market

Local Markets Expected to Open Higher

Ahead of the local open, SPI futures were 8 points higher at 5,701.

Monday 27 February - close. The Australian market extended its downward trend on Monday, with falls across energy, consumer staples and materials sectors dragging the market down, despite strong gains in QBE, Aristocrat and Lendlease. There were mixed results from the sectors; healthcare gained most significantly while energy posted the largest losses. The Australian dollar appreciated against most major currencies.

The All Ordinaries fell 13.10 points to 5,773.80 while the S&P/ASX 200 lost 14.80 points to 5,724.20.

AWE Limited (AWE)

APA Group announced that the company and Cooper Energy executed a non-binding Heads of Agreement, aligning the two companies in the development of Gippsland Basin gas projects to bring new sources of gas supply to south east Australia. Under the Heads of Agreement, the two companies have agreed to exclusively negotiate its acquisition, upgrade, and operation of the strategically located Orbost Gas Processing Plant in conjunction with Cooper Energy's development of the offshore Sole Gas Field. The Heads of Agreement provides for Cooper Energy to work exclusively with the company until the end of April 2017 to finalise and execute binding documentation to implement the transaction. AWE plunged 3.5 cents to $0.47.

QBE Insurance Group (QBE)

QBE Insurance Group announced the market release of its 2016 annual results. Its combined operating ratio improved to 93.2% from 94.3% in 2015 and compares favourably with its 94%-95% target range. Its insurance profit margin improved to 9.7% from 9.0% in 2015 and was towards the upper end of its 8.5%-10.0% target range. Return on equity increased to 8.1% from 7.5% in 2015. The 2016 result includes $366m of positive prior accident year claims development, up from $147m in 2015. It has reported five consecutive halves of favourable claims development. The 2016 result includes $366m of positive prior accident year claims development, up from $147m in 2015. It has reported five consecutive halves of favourable claims development. QBE added 30 cents to $12.60.

Annual General Meetings today (ASX 300)

  • No Annual General Meetings today

Companies trading ex-dividend today (ASX 300)

  • Asaleo Care Limited
  • Bega Cheese Limited
  • Challenger Limited
  • Greencross Limited
  • Insurance Australia Group Limited
  • Navitas Limited

Companies trading ex-dividend next business day (ASX 300)

  • Alumina Limited
  • Crown Resorts Limited
  • Event Hospitality and Entertainment Ltd
  • Perpetual Limited
  • Platinum Asset Management Limited
  • Telstra Corporation Limited

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