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DAILY RUNG
11/02/2019

A daily feed of market essentials

11.02.2019

Daily Rung

LOCAL: Australian shares kicked off the week in the red with the S&P/ASX 200 Index closing 11 points, or 0.2% lower at 6,061. The market was sold off earlier in the session, reaching a low of 6,029 before rallying into the close.

Resources were the standout gaining 1.5% while Financials and Health Care dragged the market lower closing down 1.2% and 1.1% respectively.

Today, Australian shares are set to open higher following mixed leads from offshore markets. NAB business conditions and business confidence surveys will be released for January. ASX futures were pointing up 24 points.

- Bendigo and Adelaide Bank following weaker than expected first half numbers. The regional lender’s shares dropped 6.8% to $10.39.

- JB Hi-Fi rose after reporting a better than anticipated interim profit result. The electronics and whitegoods retailer gained 1.5% to close at $22.92. The company’s profit increased 5.5% however the company warned of ongoing volatility due to sluggish consumer sentiment.

 

EUROPE: European shares bounced back on Monday. The pan-regional STOXX 600 index ended the session up 0.9% after falling on Friday amid worries over an economic slowdown.

Banks and financials had a strong session with Italian lenders leading the way after Banco BPM, UBI Banca and UniCredit said their capital ratios met European Central Bank standards. Their shares were up 7%, 3% and 1.9% respectively.

Britain’s economy slowed sharply in late 2018, pushing annual growth to a six-year low as worried about Brexit hammered business investment and a weakening global economy weighted on trade. Quarterly growth fell to 0.2% between October and December from 0.6% in the previous quarter.

- Deutsche Post gained 2.5% on a report saying that Germany was set to grant the postal services firm a higher-than-expected increase in postage for letters to account for fewer letters sent and higher costs.

- Airbus shares closed up 2% after Goldman Sachs added the stock to its ‘European Conviction’ list and reiterated its buy rating.

 

U.S.: Wall Street languished on Monday as investor hopes over U.S.-China trade talks were muted by concerns over possible congressional gridlock and a diminished 2019 earnings outlook. The S&P 500 and Nasdaq were flat while the blue-chip Dow Jones Industrial Average edged lower.

Both Beijing and Washington expressed optimism about trade negotiations between the world’s largest economies. Congressional leaders in Washington attempted to reach an agreement on border security funding in a bid to avoid another government shutdown.

Two-thirds of S&P 500 companies have reported. So far, 71% have posted better-than-expected profits. Analysts see fourth-quarter earnings growth of 16.5%, up from 15.8% at the start of the year. Looking forward, first-quarter earnings are expected to be down 0.2%, which would mark the first contraction since Q2 2016.

- Tesla shares rose 2.7% after Cannacord Genuity upgraded the stock to a buy. It said the electric automaker’s recent price cuts are helping achieve its goal of an affordable Model 3.

- Apple shares edged 0.3% lower after industry research firm IDC said in a report that iPhone sales in China fell by 20% in the fourth quarter.

Daily Chart

Source: Iress, Escala Partners
Enlarge

The shift to a more dovish stance by the Reserve Bank last week also led to a drop in the $A, which fell approximatley 2.5% from its peak earlier in the week. The central bank has shifted from a mildly tigthening bias to more neutral and the expectation is for the cash rate to remain unchanged for most of 2019.

Daily Data

Daily Weekly Monthly Quarterly Yearly
Equities Close +/- % % % % %
S&P/ASX 200  6,060.8  -10.6  -0.17%  +2.88%  +4.96%  +2.35%  +3.82% 
S&P/ASX 200 SPI  6,021.0  +24.0  +0.40%  +1.38%  +5.12%  +2.49%  +7.29% 
S&P/ASX 200 Accumulation  63,022.1  -110.3  -0.17%  +2.88%  +4.96%  +3.04%  +8.34% 
Dow Jones  25,053.1  -53.2  -0.21%  -0.74%  +4.41%  -3.60%  +3.56% 
S&P 500  2,709.8  +1.9  +0.07%  -0.55%  +4.37%  -2.56%  +3.45% 
Nasdaq  7,307.9  +9.7  +0.13%  -0.54%  +4.83%  -1.34%  +6.30% 
STOXX 600  361.1  +3.1  +0.85%  +0.33%  +3.41%  -1.26%  -2.03% 
FTSE 100  7,129.1  +57.9  +0.82%  +1.35%  +3.05%  +0.33%  +0.52% 
DAX  11,014.6  +107.8  +0.99%  -1.45%  +1.17%  -4.46%  -9.03% 
CAC 40  5,014.5  +52.8  +1.06%  +0.29%  +4.88%  -1.81%  -1.27% 
Nikkei 225  20,333.2  +0.0  +0.00%  -2.64%  -0.13%  -8.62%  -4.91% 
TOPIX  1,539.4  +0.0  +0.00%  -2.65%  +0.63%  -7.98%  -11.12% 
Hang Seng  28,143.8  +197.5  +0.71%  +0.55%  +5.54%  +9.93%  -4.62% 
Shanghai CSI 300  3,306.5  +59.1  +1.82%  +1.82%  +6.84%  +4.39%  -13.91% 
NZ 50  9,210.0  +33.4  +0.36%  +2.57%  +2.79%  +3.12%  +13.81% 
S&P 500 Sectors Close +/- % % % % %
Consumer Discretionary  845.0  +1.5  +0.18%  -0.76%  +2.02%  -2.98%  +5.30% 
Consumer Staples  553.8  +1.2  +0.21%  +0.73%  +4.44%  -5.21%  +0.19% 
Energy  466.0  +2.1  +0.46%  -2.98%  +1.68%  -7.85%  -5.11% 
Financials  426.6  +1.1  +0.25%  -1.64%  +4.89%  -5.06%  -7.05% 
Health Care  1,039.0  -1.4  -0.13%  -0.73%  +2.14%  -3.33%  +9.48% 
Industrials  617.6  +3.4  +0.55%  +0.78%  +8.10%  +1.54%  -0.53% 
Information Technology  1,190.9  +0.1  +0.00%  +0.17%  +6.76%  -2.70%  +7.96% 
Materials  330.9  +0.6  +0.19%  -1.14%  +1.06%  -3.76%  -9.59% 
Real Estate  215.0  +0.5  +0.22%  +0.96%  +8.35%  +5.06%  +15.46% 
Communication Services  150.8  -0.9  -0.63%  -1.89%  +2.52%  +0.81%  -2.92% 
Utilities  282.1  -0.2  -0.08%  +1.70%  +4.40%  +1.53%  +14.63% 
Commodities Close +/- % % % % %
Oil (WTI)  $52.39  -$0.33  -0.63%  -3.98%  +0.92%  -13.76%  -4.26% 
Oil (Brent)  $61.49  -$0.61  -0.98%  -1.63%  +1.42%  -13.16%  +3.90% 
Gold  $1,308.22  -$6.07  -0.46%  -0.31%  +1.39%  +8.15%  -0.64% 
Silver  $15.70  -$0.12  -0.76%  -1.04%  +0.68%  +10.93%  -4.04% 
Iron Ore  $88.18  -$0.70  -0.79%  +6.37%  +18.89%  +16.58%  +17.68% 
Coking Coal  $188.60  -$0.43  -0.23%  -0.27%  +5.28%  -2.92%  -12.69% 
Thermal Coal  $91.00  -$0.45  -0.49%  -7.33%  -7.00%  -15.58%  -7.19% 
Copper  $2.79  -$0.03  -0.97%  -0.29%  +3.50%  +1.55%  -8.96% 
Aluminium  $0.85  -$0.00  -0.05%  -0.63%  +2.40%  -3.79%  -11.45% 
Nickel  $5.67  -$0.04  -0.64%  -12.48%  +8.99%  +8.89%  -3.70% 
Lead  $0.93  -$0.02  -1.66%  -1.34%  +2.17%  +3.46%  -19.28% 
Tin  $9.54  -$0.01  -0.12%  +3.65%  +3.57%  +9.79%  +0.00% 
Zinc  $1.20  -$0.03  -2.22%  -2.55%  +6.10%  +4.80%  -21.89% 
Interest Rates Close +/- % +/- +/- +/- +/-
RBA Cash Rate  1.50%  +0.000%     +0.000%  0.000%  0.000%  0.000% 
90 Day Bank Bill  1.99%  -0.016%     -0.040%  -0.070%  0.050%  0.230% 
180 Day Bank Bill  2.10%  -0.045%     -0.050%  -0.080%  -0.010%  0.210% 
Australian 3 Year Bond  1.61%  +0.008%     -0.127%  -0.198%  -0.498%  -0.471% 
Australian 10 Year Bond  2.06%  -0.040%     -0.167%  -0.243%  -0.694%  -0.798% 
US 10 Year Bond  2.65%  +0.020%     -0.070%  -0.047%  -0.528%  -0.198% 
US 30 Year Bond  2.99%  +0.013%     -0.062%  -0.040%  -0.391%  -0.167% 
iTraxx  76.49  -0.47     +0.9  -11.7  -0.9  +10.5 
Currencies Close +/- % % % % %
AUD/USD  0.706  -0.003  -0.37%  -2.27%  -2.12%  -2.27%  -9.61% 
AUD/JPY  77.95  +0.16  +0.20%  -1.85%  -0.44%  -5.22%  -8.31% 
AUD/EUR  0.626  +0.000  +0.05%  -0.87%  -0.45%  -1.76%  -1.80% 
AUD/GBP  0.55  +0.00  +0.29%  -0.94%  -2.26%  -1.42%  -2.81% 
AUD/NZD  1.049  -0.003  -0.27%  +0.08%  -0.63%  -2.21%  -2.61% 
EUR/USD  1.13  -0.00  -0.41%  -1.41%  -1.67%  -0.52%  -7.96% 
GBP/USD  1.286  -0.008  -0.64%  -1.35%  +0.13%  -0.86%  -6.99% 
USD/JPY  110.37  +0.64  +0.58%  +0.44%  +1.74%  -3.04%  +1.44% 
USD/CNY  6.792  +0.047  +0.70%  +0.74%  +0.43%  -2.36%  +7.76% 
Other Indicators Close +/- % % % % %
VIX  15.97  +0.25  +1.59%  +1.53%  -12.20%  -8.01%  -45.04% 
Australian DLCs Close +/- % % % % %
BHP Billiton PLC ($A)  $31.41  +$0.31  +1.00%  +1.53%  +9.52%  +10.36%  +20.29% 
Rio Tinto PLC ($A)  $78.07  +$0.17  +0.22%  +1.42%  +13.40%  +12.97%  +16.43% 
CYBG PLC ($A)  $3.51  -$0.01  -0.29%  +11.74%  +7.09%  -25.86%  -35.40% 
Janus Henderson Group PLC ($A)  $32.09  +$0.06  +0.19%  +5.25%  +8.33%  -0.83%  -26.52% 
Resmed Inc ($A)  $13.77  +$0.11  +0.78%  +5.45%  -13.50%  -6.99%  +18.12% 
News Corporation ($A)  $17.57  -$0.30  -1.69%  -2.25%  +1.59%  -11.82%  -14.19% 

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