Stock Market Analysis: Markets Continue Higher On Speculation Of …
* U.S. stock markets were closed for a bank holiday.
* European stocks continued their upward path, after rising for a sixth week and are trading at six year highs.
* Asian stock markets edged higher, building on a second week of rises, but trading volumes were down.
* Commodities prices higher, Gold prices held at $US1,292, while crude-oil held above $US104. Copper jumped rose to US3.187c, near two month highs. I
The Australian sharemarket has closed higher for a fifth straight session yesterday with the ASX200 up 0.4% at 5512, but trading volumes were down ahead of the UK and US Bank holiday. The Materials sector rose, the Banks held steady, while the retailers extended their recent losses.
The SPI 200 futures are up 0.1% at 5531, giving another positive lead for the ASX market today as it hovers near six year highs. The Aussie Dollar rose to US92.4c. The 5550 level is key near-term for the ASX200, as markets across Europe held on to their gains and the US was closed.
Week ahead: The US and UK were closed for a bank holiday overnight. Japanese will report CPI figures. In the US data on Q1 GDP is likely to be revised negative, durables goods orders are expected to be flat, pending home sales and prices are expected to rise while consumer confidence is expected to hold. Domestically our preliminary Q1 GDP, construction and capex are expected to stabilise, while key capex FY15 intentions are likely to imply negative growth and April credit is expected to rise to a 5-year high and new home sales also due out this week.
The Gold price is currently at a pivotal level, defined by the mid of the trading range of the trading range of the past 12 months.
US Markets
U.S. stock markets was closed for a bank holiday. The three benchmark indexes are trading around record highs. The VIX is at its lowest levels since last in 14-months indicating investors are comfortable with the state of the current market. The VIX has traded this low one once in the past seven years.
For the session Dow Jones closed at 16,606, the S&P500 closed at 1,900 and the NASDAQ closed at 4,185, while on 10-year Treasury notes closed at 2.53%.
European Markets
European stocks continued their upward path, after rising for a sixth week and are trading at six year highs. The Stoxx Europe 600 Index rose another 0.6% for the session, after recording its longest winning streak since November. Trading volumes were down around 35% of the daily average for the past quarter.
Buyers stepped in after the ECB President said that policy makers are ready to take action against low inflation. The Ukrainian market jumped nearly 5% after the Central Election Commission declared billionaire Petro Poroshenko the winner, who has promised to act against separatist rebels in the east of the country.
The German market up to record levels, as traders speculated the Bundesbank will announce additional stimulus. The index is now up over 6.8% above its April lows. The London market was closed for a bank holiday.
For the session the German DAX 30 closed up 1.3% at 9,892, the UK the FTSE 100 closed at 6,815, the French CAC 40 closed up 0.8% at 4,526, while the Spanish market close up 1.2% at 10,687.
Asian Markets
Asian stock markets edged higher on low volumes, building on a second week of rises.
The MSCI Asia Pacific Index rose 0.9% for the week, after recording one of its biggest gain in the past three months in mid week, The index has risen 2.2% in the past fortnight. Trader sentiment has been boosted by the news that Chinese manufacturing activity has picked up significantly, with the HSBC Flash PMI rising to a five-month high. This data is the first sign that the Chinese government’s mini-stimulus measures, announced in recent months are starting to impact the economy.
The Chinese market rose for a second session, reaching two week highs, after Chinese money market rates dropped the most in three weeks, after President Li signalled that there will be more policy easing designed to stabilise the slowing economy. China plans to list about 100 initial public offerings from June through the end of this year as the government pushes for development in capital markets.
The Hong Kong market held just below the key 23,000 level, as it held on to recent strong gains for a second week, as the industrial and consumer sectors led the way. Japan was again a highlight in the region rising to a seven week high, as the companies that do business with China and the US have risen strongly in recent sessions, as the yen fell for the second time in three weeks.
For the session the Shenzhen Composite closed up 0.4% at 2,156, the Hong Kong Hang Seng closed flat at 22,963, and the Japanese Nikkei closed up 1.0% at 14,602 while the South Korean KOSPI closed down -0.3% at 2,010.
Commodities
The Dollar Index edged lower at 80.29 on a higher Euro, and the Aussie Dollar rose to US92.4c. Commodities prices higher.
Overnight the COMEX WTI Crude for JUN14 delivery closed down -0.2% at $US104.20, the COMEX Copper for JUN14 delivery closed up 0.6% at 3.187, the COMEX Gold for JUN14 delivery closed up 0.1% at $US1,292.90.
ASX News
FMG – Tugboat workers have temporarily called off a strike at Australia’s largest export port after the nation’s biggest iron ore miners and the federal government stepped up pressure.
IPP – iPropery Group shares jumped 8% after updating the market saying it has strong growth of property advertising; Accelerated migration of advertising spend from offline to market leading portals; Automated engagement with Agents to improve lead management and drive ARPA growth; Continuing the migration of Property Developers to online product.
OSH – Oilsearch says the first cargo of liquefied natural gas (LNG) is heading to Japan from the $20 billion Papua Guinea LNG project – a joint venture project involving Santos, Oil Search and Exxon.
SAI – Private equity group Pacific Equity Partners has launched a $1.1 billion takeover bid for information services group SAI Global, who has sacked its chief executive Stephen Porges.
SAE – Sundance Energy has sold its Denver oil and gas assets in the United States for $US116 million.
UGL – United Group the engineering and property services group has denied speculation that chairman Trevor Rowe may be replaced later this year.
Market Summary
ASX –open higher
US & UK/Europe – US closed & EU edged higher
By Michael Hevern D2MX Investment Advisor For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email [email protected].
Tags: Asian Markets, ASX, ASX News, Business News, Commodities, Crude Oil, European Markets, Ex Dividend, gold price, Nasdaq, Stock Market Analysis, stockmarket, trading, US Market wrap
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Stock Market Analysis: Markets Continue Higher On Speculation Of …
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