Morning report

Markets Await Trump Announcement

Global markets were mixed amid speculation ahead of expected announcements from President Trump regarding budget and tax policies. 

US stocks fluctuate ahead of Trump speech

Trump anticipation caused US markets to waiver, with the S&P 500 and the Dow Jones Industrial Average little changed; at the time of writing both indices are down less than -0.1%. Trump is due to release a statement around the budget, in which it is expected he will increase spending on defence forces and infrastructure. 

Hertz (HTZ) declined -1.2% in a run up to its earnings announcement after the close. Lions Gate (LGF) declined by a modest -0.7% after a mix up at the Oscars. Sothebys (BID) surged +13.7% as earnings beat estimates. Illumina (ILMN) climbed +2% following an upgrade to analyst recommendations. Berkshire Hathaway (BRK) increased +0.4% after releasing results over the weekend.     

European and UK stocks mixed

The Stoxx Europe 600 fell -0.3%, declining into its longest slump since the week before the US election, as investors question whether a rally that pushed equities to a 14-month high went too far. Deutsche Borse (DB11) slumped -3.4% while London Stock Exchange (LSE) declined -1.7% after their planned merger was disrupted. Direct Line Insurance (DLG) slid -7.6% after announcing that it expect decreases in profits. PostNL (PNL) tumbled -8.1% after reporting a -25% decrease in 4Q16 underlying operating profit.  Speculation around Trump’s announcement of the budget caused building and materials companies to gain, such as LafargeHolcim (LHN), which rose +1.4%. Bunzl (BNZL) gained +3.4% after reporting a gain in first-half pre-tax profits. 

The UK’s FTSE 100 increased +0.1% as the pound fell following a resurgence of rumours that Scotland will call for a second independence referendum.

Asian equities dropped for a second day

The MSCI Asia Pacific Index declined -0.6%. KB Financial Group (105560) decreased -3.9%, leading a drop in South Korean banks. Asian insurer AIA Group (1299) climbed +2.8% on the back of analyst upgrades.  

Japan’s Topix inched down by -0.1%. With Mitsubishi UFJ Financial (8306) and Softbank Group (9984) decreasing -2.6% and -2.4% respectively.

ASX 200 fell

The ASX 200 fell -0.3%. Woodside Petroleum (WPL) declined -1.7% on speculation Shell may sell down its stake.

Crude, gold and iron ore all up

WTI crude rose +1.83% to US$54.5 while gold rose +0.3% to US$1,260.7. Iron ore jumped US$1.83 to US$92.30/MT.

 

Today’s events

GNE 1H17 Result

NZR FY16 Result

 

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This morning summary has been provided by Forsyth Barr Ltd and is for general information purposes only - your financial situation or goals have not been taken into account. If you would like more information or advice that is specific to you, talk to your Authorised Financial Adviser.