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Monday 20

November, 201711:20 AM



CommSec Daily Report Friday

CommSec Daily Report Friday

The Australian market is off to a softer start for the first time since Monday following signs the US company tax cut plans could be delayed by one year.

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10.11.2017 12:35 PM

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The Australian market is off to a softer start for the first time since Monday following signs the US company tax cut plans could be delayed by one year. The ASX 200 is down by 0.3 per cent while still holding 6000pts. The anticipation of a 15 per cent cut to the US corporate tax rate has been a reason US equities have been hitting record highs for most of the year. American shares fell by as much as 1 per cent at one stage last night and has rubbed off onto the local market.

Despite this morning’s losses this has been a big week for the Australian sharemarket. The ASX 200 broke 6000pts for the first time since 2008 on Tuesday and has been adding to the gains for most of the week. The lion’s share of the market’s 6 per cent gains Year-to-Date have come in the past five weeks with investors becoming more optimistic.

While some of the retailers and property trusts are holding up well, mining stocks are the main weight. The price of iron ore slipped by 1 per cent overnight while shipments from Port Hedland fell by 5.5 per cent in October on lower demand from China. Our largest trading partner accounted for ~86 per cent of the port’s exports and has been falling back on environmental restrictions in Northern China to help control pollution.

The banks are mostly lower with National Bank (NAB) and Macquarie (MQG) remaining under pressure as both went exdividend this week. Westpac (WBC) – which was hit hard on Monday due to a profit miss – is lifting slightly ahead of trading ex-dividend on Monday. Note that both WBC and ANZ are likely to come under pressure at the start of next week as they trade ex-dividend (the cut-off for dividend eligibility).

News Corp (NWS) is up 4.5 per cent after a strong lift in 1Q earnings. The media giant enjoyed growth across all its business units.

REA Group (REA) is up 2.5 per cent as the owner of www.realestate.com.au handed down a 24 per cent lift in EBITDA to $107m thanks to a lift in property listings in Melbourne and Sydney. REA is ~60 per cent owned by NWS.

The latest Statement on Monetary Policy was released by the RBA today and continues to suggest that rates will be kept on hold well into 2018. We are expecting the cash rate will likely remain steady until late next year.

2.6bn shares have changed hands so far today, worth $1.8bn. 514 stocks are up, 555 are down and 369 are flat

Originally published by CommSec
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