Global Market Report - 21 September
Australian shares are set to bounce at the open, led by a strong overnight performance on Wall Street, with the major US indexes climbing as trade fears ease.
Australia
Australian shares are set to bounce at the open, led by a strong overnight performance on Wall Street, with the major US indexes climbing as trade fears ease.
The Australian dollar has also continued its recent climb back to levels last seen in late August, buying 72.92 US cents on Friday, from 72.57 US cents at Thursday's close.
In futures trading, the SPI200 futures contract was up 22 points, or 0.36 per cent, to 6188.0 points at 8.30am Sydney time.
On Wall Street overnight, trade-sensitive industrial stocks led the Dow Jones Industrial Average to a record closing high, rising 251.22 points, or 0.95 per cent, to 26,656.98.
Technology companies led the Nasdaq higher, adding 78.19 points, or 0.98 per cent, to 8028.23, while the S&P 500 also hit a new closing high, gaining 22.8 points, or 0.78 per cent, to 2930.75.
The peak lobby groups for insurers face questions at the banking royal commission today over the regulation of the industry, which in large part relies on it regulating itself.
Insurance Council of Australia CEO Rob Whelan will be questioned about general insurers before Financial Services Council CEO Sally Loane appears over the life insurance industry.
BHP Billiton has asked a US judge to approve a $US50 million ($69m) settlement of claims that it fraudulently inflated its share price by overstating its ability to manage safety risks before a fatal 2015 dam burst at a Brazilian mine.
Asia
Hong Kong and Shanghai shares were little changed on Thursday after rallying in the previous two days on optimism China's government would ramp up spending to offset the impact of US tariffs.
While speculation state-backed funds were buying shares had added to the upbeat sentiment, as did comments by Premier Li Keqiang that there would be no yuan devaluation, other factors are less supportive of a sustained rally.
Hong Kong stocks ended higher for a third straight session on Thursday, helped by consumer and technology shares. The Hang Seng index ended 0.3 per cent higher at 27,477.67, while the China Enterprises Index closed 0.5 per cent firmer at 10,792.59 points.
The Shanghai Composite Index dropped less than 0.1 per cent. Industrial and energy companies, which had led the gains earlier in the week, were among the biggest losers.
Europe
The pan-European STOXX 600 closed up 0.7 per cent while the leading euro zone stock index scored its ninth straight session of gains, up 1.1 per cent, its best performance in two months.
Autos, banking and mining sectors led gains as investors stayed resolutely focused on hopes that the latest shots in the trade war could drive the dispute towards resolution.
Autos gained 1.8 per cent, also helped by Kepler Cheuvreux upgrading its recommendation on the sector.
North America
Trade-sensitive industrial stocks have led the Dow Jones Industrial Average to a record closing high, the last of Wall Street's main indexes to fully regain ground since a correction that began in January.
All three major US indexes closed higher as trade worries subsided. Technology companies led the Nasdaq higher, along with the S&P 500, which also hit a new closing high.
Microsoft and Apple rose 1.7 per cent and 0.8 per cent, respectively. The companies headed up the tech sector's 1.2 per cent gain.
The market took the ongoing trade dispute in stride, and was further boosted as the US dollar index fell to its lowest in more than ten weeks. A weaker dollar supports US exports.
The last time the S&P and Dow hit record intraday highs without the Nasdaq following suit was December 13, 2017.
Of the 11 major sectors of the S&P 500, all but energy ended the session in positive territory.
Among the FAANG group of momentum stocks, Netflix closed lower.
The remaining FAANGs gained ground, with Facebook, Apple, Amazon.com and Google parent Alphabet, gaining between 0.8 and 1.8 per cent.
Nike rose 1.1 per cent after an analysis of the company's online sales data by Thomson Reuters Proprietary Research revealed it had sold out of 61 per cent more merchandise since the appearance the ad campaign featuring NFL player Colin Kaepernick.
Shares of Under Armour jumped 6.6 per cent as the sportswear company announced it was cutting 3 per cent of its workforce as part of its turnaround scheme.
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Lex Hall is content editor, Morningstar Australia
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