MORNING MARKET 12-12-17

OVERNIGHT

12-12 1

SPI FUTURES +14

US EQUITIES – S&P500 +8 or 0.32%, Dow Jones +57, Nasdaq +35,

Key themes –

Fed meeting gets underway tonight. Rate rise universally expected. 12.4% chance of a 50 point rise.

12-12 2

Terrorist attack in NY – an explosion rocked the Port Authority Bus Terminal, one of the city’s busiest commuter hubs.
Sector shift moved back in favour of techs versus financials
Energy sector outperforms on oil price rise

EUROPEAN MARKETS – Mostly lower – STOXX -0.05%, German Dax -0.23% and French CAC -0.23%. UK FTSE +0.80% the exception

CURRENCIES

BONDS – US bonds little changed – 2-yr: +2 bps to 1.82%, 5-yr: UNCH at 2.15%, 10-yr: UNCH at 2.39%, 30-yr: -1 bp to 2.77%

COMMODITES

WTI oil was up 1.1% or US63c to US$57.99 on a shutdown to a North Sea pipeline. The pipeline carries up to 450kbpd and has been operating at reduced capacity over the last few days, prior to the shutdown.
Gold futures steady, down US$1.50 or 0.1% to $1,246.90, ahead of the Fed.
Iron ore up US60c to US$69.08
LME metals rebounded – Copper +1.51%, nickel +2.65%, aluminium -0.42%.

NEWS, DATA AND POLITICS

US economic data – October Job Openings and Labor Turnover Survey 5.996 million (previous: 6.177 million)
Bitocoin began trading – up more than 16% on first day of trading. Reports than some Americans are taking out mortgages to speculate in the cryptocurrency.

TODAY

Economic Data – Housing prices, new home sales and NAB business confidence.

12-12 6

COMPANY NEWS

Westfield (WFD) – Trading Halt. “Westfield is in discussions in relation to a potentially significant corporate transaction, which is pending announcement to the market.”
Transurban (TCL) – Has closed the contract with the Victorian State Government to build, toll and operate the West Gate Tunnel Project till 2045. Will raise $1.9bn to fund the West Gate tunnel project. The raising will be at $11.40 per new security in a three for 37 entitlement offer.
ANZ – Sale of life insurance business to Zurich for $2.85bn. Will involve a 20 year distribution agreement. ANZ will keep mortgage insurance, general insurance distribution and financial planning. Accounting loss on sale of $520m and transaction costs of $75m.
Asaleo Care (AHY) – Profit Warning – company expects to report full year underlying EBITDA of $124-$125m and profit after tax in a range of $59-$60m.
James Hardie (JHX) – Ex-dividend 10.45c