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Category: Stockmarket / Markets / Currency / Futures

US shares lose steam after week of gains

Friday, 17 Feb 2017 05:38:10 | Rebecca Hyam

Traders are not sure where the market will go from here, given the recent strong rally. (Reuters)

US markets took a breather overnight, after closing at fresh record highs for five days in a row.

Markets at 8:15am (AEDT):

  • ASX SPI 200 futures -1 point to 5,763
  • AUD: 76.93 US cents, 61.6 British pence, 87.13 Japanese yen, 72.07 euro cents, $NZ1.0646
  • US: S&P 500 -0.11pc to 2,346, Dow Jones +0.04pc to 20,619, Nasdaq -0.12pc to 5,812
  • Europe: Euro Stoxx -0.27pc to 355.49, FTSE -0.34pc to 7,277, DAX -0.31pc to 11,757
  • Commodities: Gold +0.51pc to $US1,238.90/ounce, Brent crude oil -0.11pc to $US55.69

Falling oil prices weighed on energy stocks and the banking sector also faced a sell-off after its recent solid run-up.

Analysts suggested investors were becoming concerned that US President Donald Trump had not yet provided any substantial detail on his plans to cut taxes, despite his promise one week ago, that a "phenomenal" announcement was coming.

"Don't be alarmed," stated NAB's David de Garis.

"It's not that markets have spat the dummy, but rather US equity markets are down, having opened high, with bond yields also lower."

In economic news, weekly jobless claims held fairly steady around their lowest levels in more than 40 years.

The official figures showed claims rose by 5,000 last week to a seasonally-adjusted 239,000.

The less volatile four-week average edged up by 500 applications to 245,250.

That marks 102 consecutive weeks in which claims have been below the key threshold of 300,000, which is associated with a robust labour market.

Elsewhere, the Philadelphia Federal Reserve manufacturing index reached its highest level since January 1984.

The index jumped to a reading of 43.3 from 23.6 in January, representing the biggest one-month gain in the index since June 2009.

Consensus among economists was for a reading of just 20.

In company news, holiday ratings website TripAdvisor slumped 9.3 per cent after it delivered lower-than-expected quarterly revenue and profit.

Local market set for a weak start

European markets drifted lower, pressured by weaker metal prices, breaking seven straight sessions of gains.

Locally, the market is expected to open quite flat, with the ASX SPI 200 down just 1 point to 5,763 at 8:15am (AEDT).

At the same time, the Australian dollar was worth 76.93 US cents, having fallen overnight.

West Texas crude oil was lower at $US53.36 a barrel, the price of a barrel of Tapis was also lower at $US56.25 and spot gold had risen to $US1,238.90 an ounce.

"Iron ore slipped but remained above $US90/tonne as traders pulled offers in the physical market after the recent rally," noted ANZ's analysts.

"This was despite further news that the pressure on closing steel capacity remained high.

"The NDRC published a notice that banned banks from providing credit support to companies that produce substandard steel."

AustraliaPlus


 

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