The XJO is expected to open lower today, with the Australian dollar rising against the US dollar overnight, which appears to have offset the positive leads from the US. Our XJO is trading in a shallow uptrend, rising off the trend line and some support around 6,630 late last week.
The XJO is currently stalled somewhere in the middle of the range of the past few months. To the upside, there are resistance levels around 6,775 and 6,875 after that. To the downside, there are moving averages around 6,700 that may act as support, following that is the medium term uptrend. If the uptrend breaks, 6,500 would be the target. If 6,500 breaks, we should see the index start to downtrend – something we are yet to see this year.
Webjet Ltd (WEB) was up +9.6%, after the Company refuted reports that it was a takeover target.
Cooper Energy Ltd (COE) was up +5.2%, after providing a positive update on Sole gas project.
Altium Ltd (ALU) was down -2.6%, after Goldman Sachs reinstated coverage of the Company with a recommendation of Neutral and a price target of A$33.55 (-5.7% lower from last close).
U.S. Markets
U.S. equity markets closed higher overnight, after the Federal Reserve left interest rates unchanged and its Chairman signaled it would keep policy “somewhat accommodative.” The S&P500 was up +0.2%, led by gains in Materials partially offset by declines in Consumer Discretionary stocks. The Dow Jones was up +0.1% and the tech heavy NASDAQ closed +0.6% higher.
European Markets
European equity markets closed mostly higher overnight, as investors awaited the U.S. Federal Reserve’s policy decision and today’s U.K. election. The Stoxx Europe 600 was up +0.2%, led by gains in Retailers stocks after Zara owner Inditex surged following an acceleration in sales growth and stronger gross margins. The index gains were partially offset by declines in Banks after Credit Suisse Group AG slid on downgrading its main profitability target (return on tangible equity) for this year and next amid negative interest rates. German Dax was up +0.6% and the UK FTSE 100 closed almost flat (up +0.03%).
Asian Markets
Asian equity markets closed mostly higher overnight, with the Shanghai Composite up +0.2%, Hang Seng up +0.8% and KOSPI closing +0.4% higher. The Nikkei 225 closed -0.1% lower, with Electronics and Bank shares weighing most on the benchmark gauge, after a White House adviser said he had no indication that new tariffs won’t be slapped on Chinese goods on December 15, damping investor hopes for a last-minute agreement.
WTI oil is trading at US$58.86 a barrel.
Iron ore price is at US$85.85 per ton.
Spot gold is trading at US$1,475 per oz.
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