The XJO has twice now failed to close above its resistance at 6,750 – after testing it on Thursday and Friday, the market is otherwise maintaining its uptrend, formed over the past month. If the XJO can break above 6,750 – we could see a move back to the all-time high at 6,851. However, a break of the uptrend could see our market fall back towards the 6,630 support and possibly lower. Our market has been rallying due to trade optimism and the increasing belief of markets of an October rate cut from the RBA.
Premier Investments Ltd (PMV) surged +15.3%, after the Company reported that its Premier Retail total global sales jumped +7.5% in FY19 to a record A$1.27b and FY20 has started strong for Smiggle with sales for the first 6 weeks up +5.2% yoy (excluding the wholesale channel).
IOOF Holdings Ltd (IFL)was up +7.9%, after the Federal Court ruled in favour of IFL that its APRA-regulated entities didn’t contravene the Superannuation Industry (Supervision) Act.
Washington H Soul Pattinson Co Ltd (SOL) was down -3.1%, after the Company reported a decline in FY19 profit of -7.1% to $247.9m due to its subsidiary Round Oak’s loss widening from $9.7m to $54.1m.
US markets fell from their resistance levels after struggling at them for the past week. Technically, their indexes look rather bearish, having no trend level near current prices to rise off, and whilst showing bearish candles at resistance.
There is some support around 2,980 that the market will need to break for further bearishness to be confirmed. However, with some signs of progress on the trade front from the weekend, US futures have pushed higher. If the S&P 500 can close above the previous high of 3,025 index points, we should see further gains.
XJO Implied Volatility was up 3.64% and closed at 12.977. The US volatility was up 8.29% and closed at 15.32%.
US. equity markets closed lower on Friday amid renewed concerns over the outlook for trade talks between the U.S. and China after a delegation of Chinese officials cancelled a trip to Montana and Nebraska farms to go home earlier than planned.
The S&P500 was down -0.5% with Technology and Consumer shares sensitive to U.S. tariffs on Chinese goods pacing the decline. The NASDAQ was down -1.0% and the Dow Jones closed -0.6% lower.
The ASX200 closed +0.20% higher on Friday, led by gains in Consumer Discretionary (+0.54%) and Metals & Mining (+0.54%), partially offset by declines in Insurance (-0.58%) stocks.
Asian equity markets were mostly higher on Friday, as investors digested the latest developments in trade relations between the U.S. and China. The Shanghai Composite was up +0.2%, Hang Seng down -0.1% and KOSPI closed +0.5% higher. Nikkei 225 closed +0.2% higher, with Banks and Automakers contributing the most to the benchmark gauge.
WTI oil price is trading at US$58.78 a barrel.
Iron ore prices are at US$95.81 per ton.
Spot gold is trading at US$1,514 per oz.