U.S. equity markets were lower overnight, as investors weighed the bare-bones nature of the trade deal between the U.S. and China. There are further reports that China wishes to iron out the details before signing the deal. The S&P500 and the Dow Jones both eased -0.1% and tech-heavy NASDAQ was relatively flat (-0.02%).
European equity markets closed lower overnight following a three-day rally. The Stoxx Europe 600 closed -0.5% lower, with cyclical sectors such as miners and technology declining, and defensive sectors such as automakers gaining favour. Meanwhile, the German Dax eased -0.2%. The UK FTSE 100 was down -0.5%, paring much of the losses from the previous day’s gains as companies with exposure to the domestic economy retreated following the European Union’s warning that Brexit deal talks were still far from a breakthrough.
Asian equity markets closed higher overnight, with the Shanghai Composite up +1.2%, and KOSPI closing +1.1% higher. The Hang Seng advanced +0.8%, although the gains were capped by doubts over the durability of a partial preliminary deal, and the persisting worries regarding China’s economy. Nikkei 225 was closed for a public holiday.
WTI oil price is trading at US$53.59 a barrel.
Iron ore prices are at US$92.77 per ton.
Spot gold is trading at US$1,493 per oz.
The ASX200 closed +0.54% yesterday, led by gains in Energy (+2.87%) and Diversified Financials (+1.12%) stocks.
Technically the XJO is still trading inside of a pennant pattern looking for a direction. To the upside, the downtrend line comes in around 6,720, and there is some potential resistance at 6,700 – if those break, we should see the index rise back towards the all-time highest close of 6,851. To the downside, if the XJO can break back below some support around 6,630 and the moving averages around 6,600, it should continue to fall towards the gradual uptrend line around 6,550. Overall, the index has started to set some lower peaks, which may indicate that the upwards movement we have seen since the start of the year is coming to an end.
Fisher & Paykel Healthcare Ltd (FPH) was up +7.0%, after the Company upgraded its FY20 net income guidance to NZ$255-265m from previous guidance of NZ$245m-255m amid receipt of regulatory clearance to sell its F&P ViteraTM mask in the United States.
Hub24 Ltd (HUB) was +6.0%, after the Company reported net inflows for 1Q20 of A$1.24bn, up +94% yoy.
Santos Ltd (STO)was up +5.7%, following the news that ConocoPhillips has agreed to sell its northern Australia business to STO in a $1.4bn deal.
In Australia, data on Westpac Consumer Confidence and NAB Business Confidence is to be published. In the U.S. the release of the monthly budget statement is anticipated. In the U.K., we get the unemployment rate for the past three months.