On Wednesday, Australian stocks tacked on after the close, as revenues in the Metals & Mining, IT and Resources sectors brought shares up.
The S&P/ASX 200 managed to gain 0.11% at the close in Australia.
The best performers of the trading session on the S&P/ASX 200 included Ardent Leisure Group with its 14% soar at 2.850, Isentia Group Ltd with its 13.99% growth at 3.545 as well as Sirtex Medical Ltd, rising 12.05% at 34.825.
As for the worst performers of that session, we should point out to Blackmores Ltd with its 18.59% descend to 130.950, Mcmillan Shakespeare Ltd with its 10.61% drop to 13.095 and A2 Milk Company Ltd, tumbling 6.39% to 2.050.
Dropping shares managed to outclass advancing ones on the Australia Stock Exchange by 562 to 541, while 314 stood still.
The S&P/ASX 200 VIX, measuring the implied volatility of S&P/ASX 200 options, sank 3.71% to 12.339.
The currency pair AUD/USD descended 0.16%, being worth 0.7603, while AUD/JPY dropped 0.03%, trading at 76.32.
Taiwan shares head south at close of trade
Taiwan stocks edged down after the close, because losses in the Gas and Electricity, Financials and Oil sectors brought stocks down.
The Taiwan Weighted dipped 0.15% at the close in Taiwan.
As for the best performers of the trading session, we should enumerate Transasia with its 10% rise at 6.71, Pan Intl Ind with its 9.98% ascend at 23.70 as well as Cybertan, which surged 9.95%, trading at 21.00.
The worst performers are represented by Favite with its 6.78% slump to 15.80, Tong-Hwa Synth with its 5.87% decline to 4.33 as well as Jye Tai Precision Industrial Co Ltd, heading south 4.78%, trading at 13.95.
Sagging shares outperformed soaring ones on the Taiwan Stock Exchange by 404 to 333, while 115 remained intact.
Stocks in Pan Intl Ind edged up to 52-week peaks, earning 9.98%, being worth 23.70.
October delivery crude futures tumbled 1.60%, trading at $47.33 per barrel. Meanwhile, October delivery Brent crude futures sank 1.34%, being worth $49.29 per barrel.
EconomyVN - Yesterday, all three US stock indexes reached record highs.
Although it is 3 months until the election, but according to investors on Wall Street, US stocks are following current trends like Hillary's victory, because by far Wall Street agree that, if Hillary has a victory, the stock will rally. History shows that every candidate of incumbent President party wins, the market will go up. In this case, that is Hillary Clinton.
Currently, the stock investors have also an interesting test, in which they track the market in three months, from August to November. If the trend of the stock rallies, Hillary wins. And conversely, it decreases, Donald Trump will be elected.
While the latest figures show that, although he advised people to withdraw money from the market, but Trump has also a large investment in stock, up to 100 million USD.
On Wednesday, Australia stocks headed south after the close, as losses in the Energy, Utilities as well as Telecoms Services sectors brought shares down.
The S&P/ASX 200 edged down 0.21% at the close in Australia.
The best performers of the trading session on the S&P/ASX 200 included Computershare Ltd that surged 8.83%, trading at 9.740. Meanwhile, Cochlear Ltd gained 6.46%, being worth 133.080. Additionally, Mesoblast Ltd surged 5.79%, trading at 1.280.
As for the worst performers of the trading session, we should point out to Monadelphous Group Ltd, which managed to sink 7.43%, trading at 10.720. Whitehaven Coal Ltd slumped 6.13%, hitting 1.760, while Fairfax Media Ltd edged down 4.27%, being worth 0.953.
Dropping stocks outnumbered soaring ones on the Australia Stock Exchange by 550 to 521, while 309 finished intact.
Stocks in Cochlear Ltd headed north to all time peaks, soaring 6.46% or 8.080, hitting 133.080.
The S&P/ASX 200 VIX, measuring the implied volatility of S&P/ASX 200 options, dropped 1.01% to 12.707 a fresh 52-week minimum.
FTSE 100 pulls back from 2016 peaks
British stocks sagged, taking a breather after hitting their highest outcome this year, with traders waiting for further signals in lackluster trading.
The FTSE 100 tumbled 0.3%, being worth 6,830.52, with all sectors heading south. On Tuesday, the index soared 0.6% at 6,851.30, boasting the best close since June 2015 and a fourth straight win, as FactSet data states.
Smith & Nephew PLC stocks traded at the bottom of the benchmark, losing up to 1.8% after the medical equipment maker’s rating got downgraded to equal weight from overweight at Barclays.
However, stocks of broadcaster ITV PLC ascended by 0.3% after Entertainment One Ltd. , the Canadian film as well as and television producer behind the Peppa Pig cartoon franchise, dared to reject ITV’s $1.3 billion buyout offer.
Meanwhile, crude major Royal Dutch Shell PLC sagged 0.9%, and BP PLC tumbled 0.5% as crude prices demonstrated mixed outcomes. On Tuesday, they rebounded from a two-week peak as traders weighed worries regarding global oversupply against the prospects for an industry agreement to curb crude production.
Yen goes down on BOJ expectations
On Wednesday, the Japanese yen sagged, pressured by hopes for considerable monetary stimulus by the BOJ and amid a media report that Japan’s authorities are going to unveil a $255 billion stimulus package.
In fact, trading in the Japanese yen appeared to be choppy, with market participants taking cues from various headlines as for Japan's economic stimulus package.
The Japanese yen edged down after Japan's Fuji TV told that Prime Minister Shinzo Abe was on the verge of announcing a stimulus package on Wednesday with a headline figure of approximately 27 trillion yen.
The Japanese yen extended its sag after the Wall Street Journal informed that Japan was considering issuing 50-year bonds, though later pared some losses right after the Ministry of Finance officially denied that it was considering such an issue.
The evergreen buck last traded at 105.65 yen, showing a 1% rise on the day. The US dollar had grown by as much as 1.8% to 106.54 yen at just one point on Wednesday.
Asia stocks keep to one-year peaks
Asian stocks got to new almost one-year peaks, while the Japanese yen weakened as market participants waited for major bank meetings this week, which could see promising stimulus in Japan and offer long-awaited clues on American interest rates.
MSCI's broadest index of Asia-Pacific stocks outside Japan earned 0.2%, getting to its highest value since August 11 of 2015. Moreover, that’s a 10% rise in a month.
Japanese Nikkei earned up to 1.1%, leading the region.
By the way, there’s a near-consensus among market participants that on Friday, the Bank of Japan is going to ease on Friday, most probably by simply ramping up its already enormous purchases of government bonds as well as riskier assets.
Dropping interest rates right into negative territory has proved rather an unpopular measure with the public and the government, accordingly deepening those dips is a less likely option, as sources familiar with the major bank thinking state.
Fawad Razaqzada - The US earnings season has got off to a very good start with all the major investment banks reporting better than expected numbers – Morgan Stanley becoming the latest Wall Street giant to do so today. The focus will turn to the other key sectors now, including technology companies whose numbers will come out thick and fast over the next couple of weeks. Already we have seen numbers from Netflix and Microsoft. Although earnings and guidance from the former disappointed expectations, the latter posted a surprise increase in its adjusted earnings overnight. As a result of the mostly better than forecast earnings, the S&P 500 and Dow Jones have been able to hit repeated all-time highs in recent days. The Dow looks set to open at a new high today and if it can end the day higher, it will have extended its run of back-to-back wins to nine, its longest streak since March 2013.
While the Dow and S&P 500 have been hitting fresh all-time highs in the US, the major European indices have been far less buoyant due to the economic stagnation, troubles with Italian banks, Brexit, a rapid rise in terrorist threats and so on. But the markets here could start to rise more rapidly should earnings from European companies also start to come out stronger. In fact, Volkswagen has surprisingly published its numbers early today and said earnings in the first half of the year were “significantly higher” than expected. Its shares have rallied more than 5 per cent to the top of the DAX index, which has also helped to lift the likes of BMW and Daimler.
As well as earnings, European equities could find support from central bank stimulus, which is on-going in the case of the European Central Bank and Bank of Japan in the form of significant bond-buying programmes and low or negative interest rates. Although the ECB is unlikely to alter its policy at its meeting on Thursday, any further dovish comments could send the euro tumbling and stocks surging. Next week the focus will turn to the Federal Reserve and Bank of Japan, with the latter widely expected to do something. The Bank of England’s meeting in August will be very important to watch too with several policymakers here hinting at further policy easing measures in the aftermath of Brexit vote. However economic data from the UK this week has been fairly strong with both the inflation and employment figures beating expectations and earnings rising in line with the forecasts. Admittedly these macro pointers are a bit out-dated and so the BoE may look past them and cut rates or expand QE anyway.
Technical outlook: DAX
The DAX looks to be on the verge of finally moving out of its consolidation phase in the coming days or weeks. As the weekly chart shows, below, the index is now not too far off its bearish trend line and the 55-week moving average around 10200. A break above here could see the index go for a test of the next area of resistance in the 10340-10475 range.
But potentially, the DAX could go much higher. After all, the volatility has been contracting inside narrowing ranges in recent times, so if a breakout were to happen the next move could potentially be explosive, as new traders step in to take advantage of the move. Added to this, price action has been bullish inside the consolidation phase. As can be seen, there is a potential inverse head and shoulders pattern is in the making. The index has also found support from its still-rising 200-week moving average, thereby forming a higher low. It now needs a higher high above the 10340-10475 range. If seen, it will violate the trend of lower lows and lower highs.
So, conservative traders may wish to wait for that breakout to occur before potentially jumping on board. Alternatively, trading on the short-term time frames with a bullish bias could be another strategy they may wish to consider. The near-term bullish bias would end in the event the DAX breaks decisively below the next key support at 9800. Even so, the medium-term bullish trend would still remain intact unless the right shoulder area breaks down.