Morning Market Update - 13 July 2017


Pre-Open Data


Key Data for the Week

Key economic data released this week:

  • Wednesday – AUS – Westpac Consumer Confidence rose by 0.4%, to 96.6 in July. This is the eighth consecutive month where the Index has printed below 100, indicating pessimists continue to outnumber optimists.
  • Wednesday – EUR – Industrial Production increased 3% in May, to be up 4.0% for the previous 12 months.
  • Thursday – US – Initial Jobless Claims

Australian Market


The ASX 200 declined 0.96% yesterday, with the Health Care sector (-2.1%) leading the losses, in what was a broad sell-off, with all sectors closing lower.

The big four banks sold off; ANZ fell 1.53%, NAB lost 1.23%, Westpac dropped 1.13% and Commonwealth Bank declined 0.99%.

Shares in specialty home furnishings retailer Adairs soared 34.2% after the company provided a trading update, with both sales and EBIT at the top end of previous guidance, based on strong final quarter.

The Australian futures market points to a 0.48% rise today, being driven by positive leads from international markets overnight.

Overseas Market

US stocks rallied overnight, buoyed by Federal Reserve Chair Yellen’s congressional testimony, where she emphasised the central bank’s gradual approach to normalising monetary policy and expressed optimism about the US economy.

The Dow Jones, closed up 0.6%, reaching fresh all-time closing highs. The index also touched an intraday record of 21,580.79 earlier in the session. The S&P 500 rallied 0.7%, with all 11 sectors trading higher. The Technology, Real Estate and Materials sectors all finished up 1% or more. The Nasdaq rallied 1.1% for its fourth straight day of gains. PayPal and eBay were amongst the best performers, up 3.27% and 2.39% respectively.

In Europe, markets rallied across the board. The UK’s FTSE 100 rallied 1.19%, Germany’s DAX lifted 1.52%, France’s CAC 40 jumped 1.59% and the broad based Stoxx Europe 600 ended the day 1.52% higher.

CNIS Perspective

While share markets will always have ups and downs, investing in well managed companies providing essential services across the globe will continue to deliver strong returns.

During the last financial year, the ASX 200 rose 9.3%, or 14.1% including dividends, predominately buoyed by the banks and a rebound in Materials prices. On a global basis, the MSCI World Accumulation Index rose 18.2% in USD terms. Even taking into account the appreciation in the AUD, which strengthened over 3% for the year, international markets rose 14.6% (in AUD terms), with the US Technology sector being a standout, rallying a whopping 34% in the last financial year.

Recent data shows a shift towards improving Eurozone economic performance which, along with a more stabilising political environment and early indications the ECB is considering unwinding its quantitative easing program, should also assist European companies to begin to deliver stronger returns into the future.


Contact Us

Should you wish to discuss this or any other investment related matter, please contact our Investment Services Team on (02) 4927 8844.


The material contained in this publication is in the nature of general comment only, and neither purports, nor is intended to be advice on any particular matter.  Persons should not act or rely upon any information contained in or implied by this publication without seeking appropriate professional advice which relates specifically to his/her particular circumstances.  Cutcher & Neale Investment Services Pty Limited expressly disclaim all and any liability to any person, whether a client of Cutcher & Neale Investment Services Pty Limited or not, who acts or fails to act as a consequence of reliance upon the whole or any part of this publication. Cutcher & Neale Investment Services Pty Limited ABN 38 107 536 783 is a Corporate Authorised Representative of Cutcher & Neale Financial Services Pty Ltd ABN 22 160 682 879 AFSL 433814


Topics: Investment, CNIS, Market Update, Eurozone, Equity Market Performance, ASX

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