US flat but European markets decline as Germany trumps Car Wars threat
Published 17-JAN-2017 12:28 P.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Overseas markets were flat to negative with little movement in the Dow. However, the NASDAQ continued its strong run, posting another gain of 0.5%, hitting 5584 points and continuing to make record highs as it pushed up towards the psychological 5600 point mark.
While the FTSE 100 was relatively flat, sharp downturns were experienced by the Dax (0.6%) and the Paris CAC 40 (-0.8%).
This could be attributed to another salvo being fired on the trade wars front. With President-elect Donald Trump having flagged the prospect of a 35% tax on every car imported into the US, it was inevitable that as one of Europe’s largest carmakers, there would be a fairly acrid response from Germany.
Germany’s Vice Chancellor and economy minister highlighted in German tabloid, the Bild newspaper, that the American car industry is getting worse, weaker and more expensive and if US buyers are choosing German models as Trump suggests then that’s why the US needs to build better cars.
With global friction building across Asia and now Europe, and an inauguration speech imminent, the gold price was the winner as it returned to November highs of US$1209 overnight.
Elsewhere in the commodities space, oil fluctuated in and out of negative territory with concerns regarding a build-up in inventories causing nervousness despite the protection of the OPEC agreement.
Base metals were lower across the board, suggesting the heavy lifting in the mining sector will need to be done by gold stocks. However, there were good gains in iron ore which should translate into support for the likes of Rio Tinto, BHP Billiton and Fortescue Metals Group.
While there was a slight pullback in the Australian dollar it is still hovering in the vicinity of US$0.75.
Given the mixed bag of data from overseas and significant global uncertainty ahead of Inauguration Day it is difficult to see any significant upside across the overall market, and this was reflected in the SPI futures, down 13 points as US markets drew to a close.
Some key information to monitor on the domestic front is today’s release of November home loans data and new motor vehicle sales for December.
Please note that broker projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.