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Overseas Market Report

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Overseas Market Report - International Markets Roundup

Friday 18 May 2018 | Close

NEW YORK [Morningstar with AAP]: The S&P 500 ended lower on Friday after a choppy trading session as bank and chipmaker stocks weighed on the index and investors grappled with US-China trade talks.

Friday 18 May 2018 | Close

Foreign Equities Close Change %Change
Dow Jones (US) 24715 1 --
S&P 500 2713 -7 -0.26
NASDAQ 7354 -28 -0.38
FTSE 100 Index 7779 -9 -0.12
DAX 30 13078 -37 -0.28
CAC 40 5615 -7 -0.13
Nikkei 225 (Japan) 22930 92 0.40
HKSE 31048 106 0.34
SSE Composite Index 3193 39 1.24
NZ 50 8657 54 0.63

Friday 18 May 2018 | Close

Commodities US$ Close Change %Change
Aluminium /t 2267 -36 -1.55
Copper /t 6825 -32 -0.46
Nickel /t 14689 160 1.10
Gold /oz 1293 4 0.31
Silver /oz 16.4 0.1 0.28
Oil - West Texas crude /bbl 71.3 -0.2 -0.29
Lead /t 2315 -42 -1.80
Zinc /t 3097 4 0.12

Friday 18 May 2018 | Close

Currency Close Pts Change % Change
$A vs $US 0.7525 0.0017 0.23
$A vs GBP 0.5584 0.0010 0.18
$A vs YEN 83.43 0.26 0.32
$A vs EUR 0.6394 0.0026 0.40
$A vs $NZ 1.0859 0.0004 0.04
$US vs Euro 0.8497 0.0017 0.20
$US vs UK 0.7421 -0.0001 -0.01
$US vs CHF 0.9975 -0.0006 -0.06

NEW YORK [Morningstar with AAP]: The S&P 500 ended lower on Friday after a choppy trading session as bank and chipmaker stocks weighed on the index and investors grappled with US-China trade talks.

All three major US stock indexes posted a weekly loss as the markets reacted to reports from the US-China trade summit, rising US government bond yields and increasing oil prices.

"I think everybody's waiting on some sort of direction on American trade talks that are occurring right now, and there's anxiety about oil prices," said Oliver Pursche, vice chairman and chief market strategist at Bruderman Asset Management in New York.

China denied accounts by some US officials that it had offered a package to slash the US trade deficit by up to $200 billion, but said the consultations were "constructive," in the latest salvo of tit-for-tat messages to emerge from the high-level meeting.

"Markets tend to get over that sort of thing very quickly lately," Pursche said. "You may have a statement that ... impacts sentiment and movements over a half hour or so, but it reverses back because there's so much confusion out there right now."

Boeing Co shares rose on hopes for a reduction in the US-China trade deficit, after an American source said the company would be major beneficiary of a narrowed trade gap. Boeing sells about a fourth of its commercial aircraft to Chinese customers. The plane maker's shares advanced 2.1 per cent, helping keep the Dow Jones Industrial Average out of negative territory.

The Dow Jones Industrial Average ended the session up 1.11 points, or 0.01 per cent, at 24,715.09, the S&P 500 lost 7.16 points, or 0.26 per cent, to 2,712.97 and the Nasdaq Composite dropped 28.13 points, or 0.38 per cent, to 7,354.34.

LONDON: Britain's leading stock index posted its eighth straight week of gains despite dipping slightly on Friday as investor enthusiasm waned following the previous day's record close.

The FTSE 100 ended the session down 0.1 per cent at 7,778.79 points, in line with the FTSE 250 which hit a fresh record earlier in the session before turning lower.

The FTSE sealed its longest winning streak in 13 years, marking a strong comeback for British stocks.

Commodities, a key part of the UK stock market, have driven much of the recent climb in the FTSE 100, which has also benefited from a string of brokers recommending investors buy back into the region. The index made a full recovery from its February losses.

Oil stocks were mixed on Friday, however, having surged all week thanks to crude prices which breached the $80/barrel barrier on Thursday after a strong run.

Major Royal Dutch Shell fell 0.5 per cent, while BP edged 0.4 per cent higher.

TOKYO: Asian stocks were steady on Friday amid caution over developments in US-China trade negotiations, while the dollar perched near a five-month peak after the benchmark US Treasury yield hit its highest in seven years.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed, while Hong Kong's Hang Seng rose 0.34 per cent and Shanghai climbed 1.24 per cent as some investors bet Beijing and Washington will reach a deal in the latest round of trade talks.

Japan's Nikkei rose 0.4 per cent, and South Korea's KOSPI was up 0.5 per cent.

WELLINGTON: On Thursday, New Zealand's S&P/NZX 50 index rose 0.63 per cent, to 8,657.33.

Australian Market

Local Markets Are Expected to Open Lower

Ahead of the local open SPI futures were 30 points lower at 6,066.

Friday 18 May - close [Morningstar with AAP]: Australian shares have closed weaker as mining and banking stocks lost ground, despite the energy sector and vaccines giant CSL giving the local market a shot in the arm.

The benchmark S&P/ASX200 index closed down 6.9 points, or 0.11 per cent, to 6,087.4 on Friday, while the broader All Ordinaries index fell 6.3 points, or 0.1 per cent at 6,190.9 points.

The S&P/ASX200 dropped almost 29 points over the week but CommSec chief market analyst Steven Daghlian said it was the first sustained market pullback since the end of March.

"We have fallen about half a per cent this week, which isn't a huge loss in particular when you consider that big banks went ex-dividend," he said.

"It was always going to be a bit hard for the market to continue at the sort of pace that we have seen in the last month and a half."

CSL was the star stock, closing 4.1 per cent higher at $182.95 and injecting more than 10 points into the market.

The vaccines and blood products company's stock jumped after announcing the northern hemisphere flu season helped it boost full year profit guidance by 28 per cent, to between $US1.68 billion and $US1.71 billion on a constant currency basis.

All but one of the three of the four major banks retreated, with Westpac falling 0.9 per cent to $28.85, the Commonwealth Bank shedding 0.9 one per cent to $70.50 and National Australia Bank losing 0.7 per cent to $27.42.

ANZ closed 0.6 per cent firmer at $28.17, after announcing it will sell its majority stake in a Cambodian bank as it continues to divest assets in Asia.

A weaker iron ore price impacted the major miners, with BHP Billiton down 1.1 per cent to $34.08 and Rio Tinto falling 1.1 per cent to $85.81, while a declining gold price pushed Newcrest Mining down 1.9 per cent to $20.72.

The energy sector generally had a positive day of trade as oil prices remain around three-and-a-half-year highs.

Origin Energy, the nation's largest gas and power retailer, jumped 3.3 per cent to $10.10 and Woodside Petroleum inched ahead 0.06 per cent to $34.31.

Santos was up 0.8 per cent to $6.25, the day after US private equity firm Harbour Energy lodged a binding takeover proposal that did not increase the offer value of US10.4 billion.

In companies news, Myer gained 4.7 per cent to 45 cents despite the retailer's biggest stakeholder Solomon Lew warning shareholders to brace themselves for yet another company profit downgrade and loss.

The stock rose as rumours of a private equity buyout were reported.

Godfreys climbed 6.5 per cent to 33 cents after two major shareholders of the vacuum cleaner merchant agreed to sell their stake in the company to the 99-year-old co-founder of the business.

AMP dipped 0.3 per cent to $3.92 as the wealth management giant appeared in court for the first time to defend a class action brought on behalf of shareholders who lost money after damaging revelations at the banks royal commission.

Meanwhile, the Australian dollar firmed slightly against the greenback, with high commodity prices supporting the local currency as US 10-year bond yields rise to the highest level in around seven years.

At 1630 AEST, the local currency was worth 75.20 US cents, from 75.34 US cents on Thursday.

ON THE ASX:

The benchmark S&P/ASX200 was down 6.9 points, or 0.11 per cent, to 6,087.4

The broader All Ordinaries index was down 6.3 points, or 0.1 per cent at 6,190.9 points

National turnover was 2.4 billion securities traded worth $5.7 billion.

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