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

  • The US dollar closed little changed at 93.96.
  • The Aussie dollar is a little stronger at US75.28c.

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 DataHousing 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.
  • ANZSale 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

BROKER CHANGES

  • A2 Milk (A2M) – Bell Potter upgraded to Buy.

MARKET PRICES (as at 10:45am)

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