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DAILY RUNG
14/05/2019

A daily feed of market essentials

14.05.2019

Daily Rung

US:  US equities fell sharply on Monday after China decided to raise tariffs on some U.S. goods as the ongoing trade war between the world’s largest economies intensifies.

The Dow Jones Industrial Average dropped 617 points, or 2.4%, to 25,325 and posted its worst session since Jan. 3. The S&P 500 also had its worst day since early January, falling 2.4% to 2,812.

The indexes came off their lows in afternoon trading after President Donald Trump said he had not decided whether to slap tariffs on an additional $325 billion in Chinese goods.

Caterpillar fell 4.6% while Apple dropped 5.8%. Boeing shares declined 4.9% amid speculation the airplane maker could be singled out by China in the trade war.

Uber Technologies Inc.’s stock slid $4.47, or 11%, to $37.10 on its second day as a public company, placing it 18% below the ride-hailing giant’s initial-public-offering price of $45. The slide in Uber shares marks the second big blemish this year for the IPO market, as rival Lyft Inc. went public in late March in another hotly anticipated offering and quickly tanked. It shares are now 33% below the initial price of $72 a share.

EUROPE: European markets closed lower Monday, following news China will impose tariffs on some U.S. imports from June 1.

The pan-European STOXX 600 closed provisionally down 1.2%. Autos and basic resources stocks — which are particular sensitive to trade news — were the worst performers.

German industrial giant Thyssenkrupp fell by more than 8% after the collapse of a $13 billion merger with Tata Steel amid pressure from the European Union.

LOCAL: The Australian share market finished firmly in the red on Monday, dragged down by the major banks after the Commonwealth Bank flagged further remediation provisions and as ANZ traded ex-dividend.

At the close of trade, the ASX benchmark S&P/ASX200 had lost 13 points, or 0.21% to 6,298 points.

Commonwealth Bank was the main weight on the market, dropping 2.5% to $73.50 after it added further customer remediation provisions of $714 million and reported a slip in third quarter cash profit.

NAB lost 2% to $25.43 while Westpac backtracked 0.4% to $27.12.

Meanwhile ANZ fell 3.9% to $26.43 as it traded ex-dividend, while Macquarie Group, also ex-dividend, lowered 3.6% to $120.16.

Lendlease shot up 8.7% to $13.85 as Macquarie Research analysts estimated that the construction group could be sold for $18 a share, amid speculation a major Japanese company was plotting an acquisition.

Daily Chart

Source: Bloomberg, Escala Partners
Enlarge

ASX sector returns have diverged over the last several months, from the decline of the quarter of 2018 to the recovery through 2019. Materials has been the best performing sectors through this time on the back of commodity price movements (in particular, iron ore), while IT has lifted on declining interest rates and strong growth characteristics. Other interest rate sensitive sectors have also performed well, including REITs, which had a limited drawdown compared to the rest of the market. Financials have been one of the key laggards, with the banks impacted by a soft earnings environment.

Daily Data

Daily Weekly Monthly Quarterly Yearly
Equities Close +/- % % % % %
S&P/ASX 200  6,297.6  -13.3  -0.21%  +0.22%  +0.74%  +3.86%  +2.97% 
S&P/ASX 200 SPI  6,243.0  -54.0  -0.86%  -0.60%  +0.11%  +4.07%  +4.12% 
S&P/ASX 200 Accumulation  66,494.7  -2.8  -0.00%  +0.43%  +0.98%  +5.18%  +7.75% 
Dow Jones  25,325.0  -617.4  -2.38%  -4.21%  -4.12%  -0.85%  +1.99% 
S&P 500  2,811.9  -69.5  -2.41%  -4.11%  -3.29%  +2.14%  +3.08% 
Nasdaq  7,647.0  -269.9  -3.41%  -5.86%  -4.22%  +3.05%  +3.30% 
STOXX 600  372.6  -4.6  -1.21%  -3.72%  -3.86%  +2.08%  -5.05% 
FTSE 100  7,163.7  -39.6  -0.55%  -2.94%  -3.68%  -0.38%  -7.26% 
DAX  11,876.7  -183.2  -1.52%  -3.34%  -1.03%  +6.35%  -8.65% 
CAC 40  5,262.6  -64.9  -1.22%  -4.03%  -4.36%  +3.71%  -5.04% 
Nikkei 225  21,191.3  -153.6  -0.72%  -4.80%  -3.11%  +0.22%  -6.89% 
TOPIX  1,541.1  -8.3  -0.53%  -4.75%  -4.00%  -3.03%  -14.14% 
Hang Seng  28,550.2  +0.0  +0.00%  -2.26%  -4.55%  +0.18%  -8.26% 
Shanghai CSI 300  3,668.7  -61.7  -1.65%  -0.43%  -8.02%  +8.00%  -5.27% 
NZ 50  10,126.8  +27.5  +0.27%  +1.67%  +3.67%  +8.50%  +16.71% 
S&P 500 Sectors Close +/- % % % % %
Consumer Discretionary  902.8  -27.4  -2.95%  -4.79%  -3.57%  +4.44%  +8.14% 
Consumer Staples  583.4  -4.9  -0.83%  -1.04%  +0.62%  +4.16%  +14.99% 
Energy  464.2  -7.5  -1.58%  -2.11%  -7.09%  -2.80%  -17.88% 
Financials  442.0  -13.1  -2.87%  -4.43%  -1.93%  +1.80%  -5.62% 
Health Care  1,009.2  -17.9  -1.74%  -3.81%  -2.90%  -4.40%  +5.10% 
Industrials  623.5  -18.2  -2.84%  -4.65%  -4.23%  -1.22%  -0.68% 
Information Technology  1,284.7  -49.5  -3.71%  -6.38%  -4.67%  +6.28%  +4.83% 
Materials  337.2  -7.5  -2.18%  -3.62%  -7.29%  -0.43%  -8.51% 
Real Estate  223.4  +0.0  +0.00%  -0.29%  -1.67%  +4.02%  +14.90% 
Communication Services  160.2  -4.1  -2.52%  -4.16%  -2.83%  +5.15%  +9.23% 
Utilities  296.8  +3.3  +1.11%  +1.03%  +0.50%  +5.33%  +16.34% 
Commodities Close +/- % % % % %
Oil (WTI)  $61.04  -$0.62  -1.01%  -1.94%  -4.65%  +10.14%  -6.77% 
Oil (Brent)  $69.95  -$0.67  -0.95%  -1.81%  -1.56%  +10.35%  -2.69% 
Gold  $1,299.91  +$13.86  +1.08%  +1.47%  +0.73%  -0.49%  -1.47% 
Silver  $14.76  -$0.02  -0.15%  -0.92%  -1.40%  -5.18%  -11.42% 
Iron Ore  $92.14  -$0.84  -0.90%  +1.17%  -1.80%  +9.86%  +37.09% 
Coking Coal  $197.21  -$1.44  -0.72%  -1.81%  +0.84%  +4.04%  -0.19% 
Thermal Coal  $85.35  -$1.35  -1.56%  -1.84%  -3.12%  -8.37%  -16.04% 
Copper  $2.73  -$0.05  -1.88%  -3.61%  -7.29%  -1.86%  -13.41% 
Aluminium  $0.82  +$0.00  +0.06%  +0.16%  -2.90%  -2.74%  -20.94% 
Nickel  $5.35  -$0.06  -1.13%  -6.30%  -9.49%  -4.99%  -16.14% 
Lead  $0.81  -$0.02  -2.03%  -1.84%  -7.27%  -11.63%  -23.88% 
Tin  $8.77  -$0.14  -1.53%  +0.00%  -6.30%  -8.41%  -7.87% 
Zinc  $1.16  -$0.03  -2.40%  -3.27%  -12.33%  -1.16%  -16.76% 
Interest Rates Close +/- % +/- +/- +/- +/-
RBA Cash Rate  1.50%  +0.000%     +0.000%  0.000%  0.000%  0.000% 
90 Day Bank Bill  1.64%  -0.006%     +0.094%  -0.053%  -0.338%  -0.291% 
180 Day Bank Bill  1.67%  +0.000%     +0.080%  -0.100%  -0.435%  -0.370% 
Australian 3 Year Bond  1.27%  -0.010%     +0.021%  -0.174%  -0.417%  -0.890% 
Australian 10 Year Bond  1.72%  -0.006%     -0.014%  -0.160%  -0.427%  -1.057% 
US 10 Year Bond  2.40%  -0.066%     -0.068%  -0.164%  -0.301%  -0.568% 
US 30 Year Bond  2.84%  -0.051%     -0.052%  -0.141%  -0.195%  -0.268% 
iTraxx  72.52  +2.18     +4.0  +3.6  -1.0  +7.6 
Currencies Close +/- % % % % %
AUD/USD  0.694  -0.006  -0.83%  -0.67%  -3.19%  -2.06%  -7.94% 
AUD/JPY  75.91  -1.07  -1.39%  -1.98%  -5.52%  -3.55%  -7.99% 
AUD/EUR  0.619  -0.004  -0.72%  -0.87%  -2.54%  -1.72%  -2.00% 
AUD/GBP  0.54  -0.00  -0.50%  +0.38%  -2.34%  -2.90%  -3.78% 
AUD/NZD  1.057  -0.004  -0.39%  +0.03%  -0.31%  +1.36%  -2.32% 
EUR/USD  1.12  -0.00  -0.10%  +0.21%  -0.68%  -0.35%  -6.04% 
GBP/USD  1.296  -0.004  -0.31%  -1.06%  -0.89%  +0.87%  -4.31% 
USD/JPY  109.30  -0.65  -0.59%  -1.32%  -2.43%  -1.54%  -0.08% 
USD/CNY  6.878  +0.052  +0.77%  +1.66%  +2.61%  +1.75%  +8.59% 
Other Indicators Close +/- % % % % %
VIX  20.55  +4.51  +28.12%  +33.10%  +71.11%  +31.31%  +62.45% 
Australian DLCs Close +/- % % % % %
BHP Billiton PLC ($A)  $31.97  -$0.39  -1.22%  -4.03%  -9.34%  -0.42%  +4.05% 
Rio Tinto PLC ($A)  $81.51  -$0.41  -0.50%  -1.28%  -6.27%  +3.30%  +7.47% 
CYBG PLC ($A)  $3.45  -$0.08  -2.31%  -10.38%  -12.89%  -1.49%  -39.68% 
Janus Henderson Group PLC ($A)  $30.50  -$1.10  -3.49%  -4.81%  -11.78%  -7.98%  -32.75% 
Resmed Inc ($A)  $15.96  -$0.04  -0.28%  -0.91%  +11.95%  +14.40%  +18.06% 
News Corporation ($A)  $16.68  -$0.50  -2.94%  -4.20%  -6.18%  -6.61%  -18.85% 

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