Advanced Search

Share Coverage



Category: Stockmarket / Currency / Futures / Markets

Morning markets: Crude shock and solar meltdown

Thursday, 11 Aug 2016 06:38:01 | Rebecca Hyam Rebecca Hyan And Michael Janda

US shares were dragged lower by a fall in oil prices overnight. (Brendan McDermid,file photo: Reuters)

Stocks in the United States retreated from record levels overnight, after a drop in oil prices put pressure on the energy sector.

Markets at 8:15am (AEST):

  • ASX SPI 200 futures -0.1pc to 5,483
  • AUD: 77.2 US cents, 59.3 British pence, 78.1 Japanese yen, 69 euro cents, $NZ1.06
  • US: Dow Jones -0.2pc to 18,496, S&P 500 -0.3pc to 2,175, Nasdaq -0.4pc to 5,205
  • Europe: Euro Stoxx 50 -0.4pc to 3,018, FTSE 100 +0.2pc to 6,866, DAX -0.4pc to 10,651
  • Commodities: Brent crude -2.5pc to $US43.84 a barrel, iron ore -1.1pc $US60.70 a tonne, gold +0.5pc to $US1,347 an ounce

An unexpected stockpile build in crude oil surprised the market and weighed on sentiment quite broadly.

IG market analyst Angus Nicholson said crude oil dominated the market moves.

The major story overnight is the dramatic 3 per cent drop in WTI oil.

"Oil is increasingly pulling back towards the $US40 a barrel level again and many in the markets are concerned that the shorts may even be looking for prices to drop down towards the $US35 level.

"Crude oil inventories in the weekly EIA report saw the third weekly increase in a row despite the market expecting a decline."

In corporate news, the second biggest solar panel maker in the US, Sunpower, reported a second quarter loss, lowered its full-year revenue forecast and said it would reorganise its business.

That sent its shares plunging by almost 30 per cent.

However, shares in Walt Disney strengthened after its quarterly profit beat analysts' estimates.

The media giant also announced it will take a 33 per cent stake in video-streaming company BAMTech for $US1 billion.

London's FTSE 100 was a standout performer among the major European markets, with gains of 0.2 per cent, while most other bourses were down.

The local market is set for a flat start, with a modest decline in the ASX SPI 200 futures.

At the same time, the Australian dollar surged through 77 US cents, despite the weakness in commodity prices.

The New Zealand dollar also jumped, despite a rate cut by its central bank this morning.

Today's agenda:

Australia:
  • Telstra FY results (8:15am AEST)
  • Goodman Group FY results (8:15am AEST)
  • Atlas Iron FY results (8:15am AEST)
  • Magellan Financial Group FY results (8:15am AEST)

New Zealand:
  • Reserve Bank of NZ rates decision (7:00am AEST)

US:
  • Jobless claims – weekly (11:30pm AEST)

AustraliaPlus


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend