Markets in holding pattern ahead of US tax relief information

Published at Mar 8, 2017, in Equities

In a lacklustre day’s trading, the Dow spent most of the day in negative territory before finishing the session down 30 points or 0.1%

It appears that the most significant market moving event on the horizon is tax cuts and it is difficult to see a market that has come so far so fast varying much from current levels until the details are released.

The NASDAQ took a dive towards the end of trading to finish at 5833 points, representing a decline of nearly 0.3%

There was little movement in the FTSE 100 with only 30 points being the difference between the low and the high point of the session.

After modest early gains the index finished down 0.15% at 7338 points.

It was a similar story in mainland Europe as the DAX hovered in a tight range, but finished up less than 0.1% after the release of below expectations German factory order data.

The Paris CAC 40 fell 0.3% to close at 4955 points.

The other factor keeping a lid on activity in European markets is the imminent European Central Bank meeting on Thursday. While any shift in rates is seen as extremely unlikely there is the prospect of forward guidance which could have the impact of swaying markets.

On the commodities front, gold moved sharply lower, closing at US$1215 per ounce, a decline of 0.9%.

After an early spike in the oil price from circa US$53 per barrel to US$53.80 per barrel, nearly all of those gains were lost in afternoon trading.

Iron ore continued to hover just under US$90 per tonne.

Base metal prices fell sharply overnight with nickel one of the worst performers as it declined 3.7% from the previous day’s close of US$5.00 per pound to US$4.81 per pound.

Copper fell 1.5% to close at US$2.61 per pound. Zinc’s close of US$1.21 per pound represented a decline of 1.7%.

Lead was the best performer and its close of US$1.01 per pound represented a fall of circa 0.5%.

The Australian dollar finished just below US$0.76.

It should be noted 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.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). 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