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Overseas Market Report - U.S. Markets End Lower after Tech Losses, Barcelona Attack

Thursday 17 August 2017 | Close

U.S. markets finished lower on Thursday after tech companies, led by CISCO Systems, reported disappointing earnings results, and as investors continued to ponder the Fed minutes and Trump's legislative agenda, which appears to be polarising a nation.

Thursday 17 August 2017 | Close

Foreign Equities Close Change %Change
Dow Jones (US) 21751 -274 -1.24
S&P 500 2430 -38 -1.54
NASDAQ 6222 -123 -1.94
FTSE 100 Index 7388 -45 -0.61
DAX 30 12203 -60 -0.49
CAC 40 5147 -30 -0.57
Nikkei 225 (Japan) 19703 -27 -0.14
HKSE 27344 -65 -0.24
SSE Composite Index 3268 22 0.68
NZ 50 7870 17 0.21

Thursday 17 August 2017 | Close

Commodities US$ Close Change %Change
Aluminium /t 2083 -17 -0.80
Copper /t 6456 -40 -0.62
Nickel /t 10671 -36 -0.34
Gold /oz 1289 4 0.29
Silver /oz 17.0 -0.0 -0.23
Oil - West Texas crude /bbl 47.0 -0.1 -0.30
Lead /t 2390 -108 -4.31
Zinc /t 3053 -55 -1.77

Thursday 17 August 2017 | Close

Currency Close Pts Change % Change
$A vs $US 0.7885 -- -0.57
$A vs GBP 0.6125 -- -0.39
$A vs YEN 86.27 -0.96 -1.10
$A vs EUR 0.6723 -- -0.18
$A vs $NZ 1.0824 -- -0.06
$US vs Euro 0.8526 -- 0.40
$US vs UK 0.7768 -- 0.15
$US vs CHF 0.9623 -- -0.27

U.S. markets finished lower on Thursday after tech companies, led by CISCO Systems, reported disappointing earnings results, and as investors continued to ponder the Fed minutes and Trump's legislative agenda, which appears to be polarising a nation.

Investor confidence on Wall Street was also shaken following a suspected terrorist attack on a tourist destination in Barcelona.

At the closing bell, the Dow Jones and the S&P 500 were down 1.2% and 1.5% respectively, while the Nasdaq was down by 1.9%.

Cisco (CSCO) finished fiscal 2017 largely in the same way it started, by displaying an overall softness across its legacy hardware portfolio. This quarter saw another round of year-over-year declines in switching, routing, and data centre segments, along with the collaboration segment's hardware. On the upside, Cisco posted another 50% yearly growth in software and subscription deferred revenue as the company continued to execute on its strategy to shift away from the hardware business and deliver more value to the customers through software and services.

NetApp (NTAP) posted a solid start to fiscal 2018, as solid growth in All-Flash solutions and tight expense control were on display in the first quarter. The company continues to make in-roads in the strategically-important public cloud, evident in its recently announced wide-ranging partnership with Microsoft Azure. Total revenue was $1.3 billion, up 2.4% year over year. The strategic solutions segment grew 22% year over year as NetApp successfully navigates its multi-stage portfolio transition process.

For Australian ADRs listed on the NYSE, BHP Billiton slipped 71 cents (-1.72%) to $40.46, ResMed gained 11 cents (0.15%) to $72.79, Telstra Corporation lost 161 cents (-9.41%) to $15.50, Spark New Zealand fell 13 cents (-0.90%) to $14.27, and Westpac declined 47 cents (-1.80%) to $25.69.

At 7:45 AM (AEST), the 10-year Treasury note yield was 2.19% and the 5-year yield was 1.75%.

European markets fell on Thursday.

The FTSE 100, the French CAC 40, and Germany's DAX fell 0.6%, 0.6%, and 0.5%, respectively.

Asian markets ended mixed on Thursday.

The Hang Seng fell 0.2%, the Shanghai Composite rose 0.7%, and the Nikkei 225 was down 0.1%. India's Sensex rose 0.1%.

Australian Market

Local Markets Expected to Open Lower

Ahead of the local open, SPI futures were 51 points lower at 5,695.

Thursday 17 August - close. The local market opened higher on the back of modest gains on Wall Street overnight. However, the positivity was short-lived as stocks fell below the flat-line and remained there from 2pm until the close, weighed down by Telstra's decision to cut back on dividends. There were mixed results from the sectors: healthcare and materials gained most significantly while telecommunication services and utilities were the biggest laggards of the session. The Australian dollar gained against most major currencies.

The All Ordinaries fell 3.60 points to 5,827.20 while the S&P/ASX 200 fell 5.90 points to 5,779.20.

Telstra Corporation (TLS)

Telstra Corporation provided an amendment to its previous dividend announcement. The company has made the correction to section 2A.9 to clarify the dividend amount as 15.5cps for the six months ending 30 June 2017. The dividend is fully franked, with a record date of 31 August 2017 and a payment date of 28 September 2017. The company's dividend reinvestment plan will not apply to this dividend. TLS lost 46 cents to $3.87.

Blackmores Limited (BKL)

Blackmores announced the appointment of Richard Henfrey as CEO following the recent resignation of Christine Holgate. Richard has served as chief operating officer of the company for the past three years and has held a number of senior leadership roles within the company since joining in 2009. His appointment is effective immediately. The appointment follows an extensive process which evaluated both internal and external candidates. Blackmores will announce its full year financial results on 29 August 2017. BKL added 374 cents to $90.99.

Annual General Meetings today (ASX 300)

  • No Annual General Meetings today

Companies trading ex-dividend today (ASX 300)

  • Ansell Limited
  • Class Limited
  • Oohmedia Limited

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

  • Domino's Pizza Enterprises Limited

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