Today's Trade: ASX200 buoyant ahead of CPI data
- Local markets opened higher, led by miners
- Gold headed for the first gain in three sessions on the interest rate outlook
- US oil prices sank to a fresh three-month low
- If no improvements in today’s CPI then AUDUSD expected to drop to 0.73 support
interest rates to stay low. Photo: iStock
- Wednesday: Boeing, Coca-Cola, Comcast, Facebook, Amgen, State Street, Whole Foods, Groupon, GoPro, Cheesecake Factory, GlaxoSmithKline, Lumber Liquidators, Six Flags, Altria, Deutsche Bank, Fiat Chrysler, Statoil, Dr. Pepper Snapple, Ingersoll Rand, Hess, Corning, Nissan, Norfolk Southern, Nintendo, Southern Co, Anthem, Statoil, General Dynamics, Nasdaq OMX, Northrop Grumman, Mondelez
- Thursday: Amazon.com, Alphabet, AstraZeneca, Bristol-Myers Squibb, Colgate-Palmolive, Celgene, Cigna, Total, MasterCard, Ford, Dow Chemical, Diageo, ConocoPhillips, Credit Suisse, Royal Dutch Shell, BNP Paribas, Hershey, HCA, Harley-Davidson, Marsh & McLennan, Marathon Petroleum, Potash, PG&E, TransCanda, Raytheon, Expedia, CBS, Samsung
- Friday: Exxon Mobil, Chevron, Merck, AB InBev, UPS, UBS, Sanofi, Xerox, CBOE Holdings, Philips 66, Cabot Oil, Barclays, Eni, Tenneco, Lexmark, CNA Financial
- S&P/ASX 200 Index futures rise 0.2%; futures relative to estimated fair value suggest an early gain of ~0.4%
- Bank of New York Australia ADR Index +2.7%, BHP Billiton ADR +4.2% to $A19.63 equivalent, 1.9% premium to last Sydney close, Rio Tinto ADR +4.3% to $A43.16 equivalent, 11% discount to last Sydney close
- Gold headed for the first gain in three sessions on the outlook for interest rates to stay low as US policymakers gathered for a two-day meeting and a Bank of England official indicated he favours immediate economic stimulus. Gold for August delivery settled up 0.1% at $1320.80 a troy ounce on Comex.
- Gold traded as low as $1,317.50 and as high as $1,322.50 during the session. Goldies in Toronto lifted 2.39% overnight. In early reporting, Silver Lake achieved full-year gold sales of 132,400 ounces. Gold stocks: GOR, NCM, NST, AQG, EVN, KCN, RMS, SAR, SLR
- US oil prices sank to a fresh three-month low Tuesday as a glut of gasoline keeps weighing on the market. US oil for September delivery settled down 21¢, or 0.5%, at $42.92. Six losing sessions out of the past seven have sunk it to its lowest settlement since April 25.
- Brent, the global benchmark, gained 15¢, or 0.3%, to $44.87/barrel on ICE Futures Europe, snapping a three-session losing streak. Oversupply concerns have sent oil into retreat throughout July, reversing a five-month rally that had sent oil above $50/barrel.
- US refiners have overwhelmed even record demand, and saturated international markets have supplies backing up in the US, too, analysts said. Despite those fears, US drillers are showing signs they’re ready to ramp up production again. They added 15 active rigs to oil fields last week, the fourth consecutive week of increases. Oil stocks: WOR, WPL, STO, SEA, BPT, OSH, HZN, DLS, AWE, KAR, ORG, SXY
- Iron ore rose $1.22, or 2.2%, to $58.08/ton, according to a price index compiled by Metal Bulletin. Iron ore’s ascent has prompted several banks to forecast a retracement toward the year-end. Macquarie Group warned this month that recent advances may be well beyond fundamentals, saying there was abundant supply, rising inventories at China’s ports and prospects for weaker steel production.
- Meanwhile, UBS stated in a report that the ramp up at Roy Hill appears to be gathering steam, with export rates at an annualised 24 million tons a year through May and June, which described the development as a “bearish risk.” Iron ore stocks: FMG, BHP, GBG, GRR, MGX, RIO, ARI, BCI, SDL
- Nickel and zinc fell to one-week lows as weaker oil prices heightened concerns over the health of the global economy. Nickel for delivery in three months fell 1.2% to settle at $10,350/tonne on the London Metal Exchange. Prices declined as much as 2.3% intraday, touching the lowest since July 18, despite suggestions of an ore-export ban from the Philippines, the top miner, during a nationwide audit on mines.
- Copper futures for September delivery climbed 0.4% to $2.2255/pound on Comex. Overnight Freeport-McMoRan reported weaker-than-expected revenue for the second quarter as the price of copper and oil plunged and gold sales tumbled. Freeport sold 156,000 ounces of gold, less than half as much as it sold a year ago. Meanwhile its average selling price for oil fell 18% compared to the second quarter of 2015, and the price of copper slumped 20%. The Phoenix-based company disclosed a loss of $479 million, or 38¢ per share.
- Excluding one-time items, Freeport- McMoRan said it lost 2¢ per share. Its revenue dropped 15% to $3.33 billion. Freeport-McMoRan shares opened lower, but turned around to sustain a big rally. Independence Group this morning has been placed in a trading halt as Macquarie and Euroz are in the market with a $250mln placement. The brokers were seeking to sell shares at $3.75 each. Copper stocks: PNA, OZL, SFR; Nickel stocks: IGO, WSA; Aluminium stock: AWC
- AMP (AMP): Starts $A300mln infrastructure raising, AFR reports
- GrainCorp (GNC): Archer-Daniels-Midland doesn’t plan to sell stake, AFR says
- Elanor Investor Group (ENN): Moelis said to be raising $A30mln at $A1.85 apiece, AFR says
- Fortescue (FMG): Set to release Q4 production data
- Vicinity (VCX): Property revaluations give net value gain of $A279mln
- WPP AUNZ (WPP): Upgraded to outperform from neutral at Credit Suisse
- SAI Global (SAI): Cut to sell from hold at Canaccord Genuity
- ASX200 crosses 5500 threshold.
Note: We are cancelling the buy limit over IGO.xasx due to capital raising. Independence Group this morning has been placed in a trading halt as Macquarie and Euroz are in the market with a $A250mln placement. The brokers were seeking to sell shares at $A3.75 each