Weakness in global markets points to headwinds for Australian stocks

By Trevor Hoey. Published at May 12, 2017, in Features

After being down more than 140 points early in the session, the Dow recovered to close 23 points lower at 20,919 points.

A number of the large IT companies finished in negative territory including Microsoft Corp (-1.2%) Intel Corp. (-0.9%) and IBM (-0.4%). Weakness amongst retail stocks also drove the index lower.

Health and biotech stocks placed a drag on the NASDAQ with it falling 0.2% to 6115 points.

Negative sentiment also prevailed in the UK and Europe. While the FTSE 100 finished broadly in line with the previous day’s close at 7386 points, it spent a good part of the session in negative territory.

The heat has come out of mainland European markets, which was to be expected given the DAX has been notching up record highs over the last two weeks and the Paris CAC 40 ran hard leading up to the election.

That DAX shed 0.4% to close at 12,711 points, while the Paris CAC 40 came off 0.3%, closing at 5383 points.

More positive sentiment prevailed in the commodities space with oil rallying another 1% to close at US$47.82 per barrel.

Gold increased 0.5%, closing at US$1225 per ounce.

Iron ore was relatively flat, closing just above US$60 per tonne.

Base metals were mixed, but the standout performer was nickel as it rallied more than 2% to close at US$4.21 per pound, its highest close since the start of May.

Copper gained nearly 1% to close at US$2.50 per pound.

Both zinc and lead fell marginally to the tune of about 0.5%, closing at US$1.17 per pound and US$0.99 per pound respectively.

The Australian dollar weakened further, closing at US$0.737.

This article is General Information and contains only some information about some elements of one or more financial products. It may contain; (1) broker projections and price targets that are only estimates and may not be met, (2) historical data in terms of earnings performance and/or share trading patterns that should not be used as the basis for an investment as they may or may not be replicated. Those considering engaging with any financial product mentioned in this article should always seek independent financial advice from a licensed financial advisor before making any financial decisions.

S3 Consortium Pty Ltd (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 only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Facebook
Twitter
LinkedIn