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Morning Market Update - 9 October 2017

 

Pre-Open Data

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Key Data for the Week

Key economic data released this week:

  • Tuesday – AUS – NAB Business Conditions & Confidence
  • Tuesday – UK – Industrial Production
  • Wednesday – AUS – Westpac Consumer Confidence
  • Thursday – EUR – ECB President Draghi’s Speech
  • Thursday – EUR – Industrial Production
  • Thursday – US – Initial Jobless Claims
  • Friday – US – Consumer Price Index
  • Friday – US – Retail Sales

Australian Market

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The Australian sharemarket closed 1.04% higher on Friday, with all sectors, except for Utilities, ending the session higher.

Telecommunications and Materials sectors were the standout performers, rising 1.6% and 1.4% respectively, while the Energy, Financials, Health Care & Industrial sectors each finished the day up at least 1.0%.

The big four banks and Macquarie Group all had a strong day, with each closing over 1.1% higher, while across other stocks, Telstra jumped 1.8% and Wesfarmers gained 1.6%.

The Energy sector was buoyed by hopes Saudi Arabia and Russia will agree to extend production cuts through next year, with Woodside Petroleum and Santos Limited climbing 1.6% and 2.3% respectively.

The Australian futures market points to a 0.69% fall today.

Overseas Market

European sharemarkets were mixed on Friday. The Spanish IBEX index fell 1.9%, as investors focussed on uncertainty about the political situation in Catalonia, while Italian banks also weighed on markets in Europe, falling around 3%, after the European Central Bank asked lenders to set aside more cash to cover bad loans. The STOXX Europe 600 and German DAX fell 0.4% and 0.1% respectively, while the UK FTSE 100 rose 0.2%.

US sharemarkets ended flat on Friday. Employment fell for the first time in seven years, although hurricane activity affected the result. The Dow Jones and S&P 500 each closed slightly lower, while the NASDAQ rose 0.07%, eking out a record closing high.

CNIS Perspective

Australia may be able to boast 26 years of economic growth without recession, but a close look at the past ten years, reveals we have actually slid backwards when compared with other developed countries.

Economic growth has shrunk and the Australian stock market is smaller now than it was prior to the GFC and now smaller than South Korea and India.

Interestingly, the five biggest companies by market value in 2017 are the same as 10 years ago, whereas in the US, only Microsoft remains in the top 10 from 2007.

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Contact Us

Should you wish to discuss this or any other Investment related matter, please contact our Investment Services Team on (02) 4928 8500.


Disclaimer

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, US Sharemarket

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