STOCK PRICE INDEXES – AUSTRALIA

Santa rally looking strong after ‘great escape’

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Original article by David Rogers
The Australian – Page: 27 : 30-Nov-16

Australia’s S&P/ASX 200 has gained 2.6 per cent so far in November 2016, and it seems poised to achieve its best performance for the month since 2005. Meanwhile, Macquarie Group is upbeat about the outlook for the benchmark index in 2017, forecasting that it will rise by 7.5 per cent to around the 5,875-point level. However, Macquarie notes that the local market could potentially be affected by a number of overseas factors in 2017.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, UNITED STATES. FEDERAL RESERVE BOARD, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Recovery looks set to stay the course for year

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Original article by David Rogers
The Australian – Page: 31 : 24-Nov-16

Australia’s S&P/ASX 200 has gained 8.6 per cent since Donald Trump won the US presidential election. The market has not staged a similar rally since December 2015, which followed a global equities sell-down prior to the rise in US interest rates. Financial markets have already priced in the next rise in US rates, so there would seem to be few factors that could potentially stall the domestic bourse’s recent rally.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, DEUTSCHE BANK AG, UNITED STATES. FEDERAL RESERVE BOARD, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, AMCOR LIMITED – ASX AMC, MACQUARIE GROUP LIMITED – ASX MQG, ARISTOCRAT LEISURE LIMITED – ASX ALL, INCITEC PIVOT LIMITED – ASX IPL, TELSTRA CORPORATION LIMITED – ASX TLS, SYDNEY AIRPORT – ASX SYD, RESERVE BANK OF AUSTRALIA

Stocks bounce back, buoyed by Trump’s fiscal optimism

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Original article by Vesna Poljak
The Australian Financial Review – Page: 23 & 34 : 11-Nov-16

The Australian sharemarket posted its largest single-day gain in more than five years on 10 November 2016, while Wall Street defied expectations of a big fall after the election of Donald Trump, finishing in the black. The Australian dollar also rallied, while local and US 10-year bond yields rose. Financial markets have scaled back the odds of a reduction in Australia’s cash rate by mid-2017, while there has been a slight easing of expectations of a rate rise in the US in December 2016.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, NIKKEI 225 INDEX, HANG SENG INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, EURO STOXX 50 INDEX, PM CAPITAL LIMITED, RESERVE BANK OF NEW ZEALAND, UNITED STATES. FEDERAL RESERVE BOARD, QIC LIMITED, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Wave of uncertainty wipes $30bn

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Original article by David Rogers
The Australian – Page: 21 & 30 : 10-Nov-16

The Australian dollar and the domestic sharemarket fell sharply on 9 November 2016, in response to the election of US presidential candidate Donald Trump. The S&P/ASX 200 reached an intra-day low of 5,052.1 before closing down 1.9 per cent at 5156.6. In the US, S&P 500 futures initially fell by more than five per cent, which resulted in a temporary suspension of trading. Some analysts expect "risk-off" trading to be sustained for some time, while the prospect of an interest rate rise in the US in December appears to have diminished. The Australian dollar reached a low of $US0.758 in local trading, and Westpac’s Robert Rennie says it could fall below $US0.74 in the near-term.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, FTSE 100 INDEX, UNITED STATES. FEDERAL RESERVE BOARD, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, CITIGROUP PTY LTD, HSBC AUSTRALIA HOLDINGS PTY LTD, CAPITAL ECONOMICS LIMITED

Buckle up for a day of unusual volatility

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Original article by David Rogers, Andrew White, Paul Garvey
The Australian – Page: 19 & 28 : 9-Nov-16

The US presidential election is set to dominate financial market trading on 9 November 2016. Voting trends will have emerged by the time the Australian sharemarket opens, while market volatility can be expected as exit polls are released over the course of the local trading day. The Chicago Board Options Exchange’s Volatility Index has returned to its long-term average of 19, which suggests that financial markets do not anticipate that Donald Trump will win.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, STANDARD AND POOR’S 500 INDEX, UNITED STATES. FEDERAL RESERVE BOARD, VOTECASTR, REPUBLICAN PARTY (UNITED STATES), DEMOCRATIC PARTY (UNITED STATES), RESERVE BANK OF AUSTRALIA, MONASH UNIVERSITY, ECONOMICS SOCIETY OF AUSTRALIA, UNITED STATES. FEDERAL BUREAU OF INVESTIGATION, AUSDRILL LIMITED – ASX ASL

Clinton victory set to unleash a ‘wave of cash’ into global markets

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Original article by David Rogers, Glenda Korporaal, Michael Bennet
The Australian – Page: 19 & 32 : 8-Nov-16

The Australian sharemarket rallied on 7 November 2016, after a new FBI probe cleared US presidential candidate Hillary Clinton over the use of a private email server. AMP Capital’s Nader Naeimi says investors are likely to reallocate cash holdings to higher-risk assets if Clinton wins the election. Meanwhile, Paul Donovan of UBS has warned that world trade and global capital flows could be disrupted if Donald Trump becomes president.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, UBS AG, WESTPAC BANKING CORPORATION – ASX WBC, NIKKEI 225 INDEX, NZSX-50 INDEX, UNITED STATES. FEDERAL BUREAU OF INVESTIGATION, UNITED STATES. FEDERAL RESERVE BOARD

ASX slips for a third day, US worry lingers

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Original article by Jessica Sier
The Australian Financial Review – Page: 26 : 4-Nov-16

The S&P/ASX 200 index closed 0.1 per cent lower at 5,225.6 points on 3 November 2016. The All Ordinaries index declined 0.1 per cent to 5,306.5. Investors are concerned about the chaotic US presidential election. Shares in Warrnambool Cheese & Butter Factory rose 5.2 per cent to $A6.85 following the announcement of a profit of $A20.8 million in the six months to 30 September and a 10 per cent rise in revenue to $A325.9 million.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, WARRNAMBOOL CHEESE AND BUTTER FACTORY COMPANY HOLDINGS LIMITED – ASX WCB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UNITED STATES. FEDERAL RESERVE BOARD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BORAL LIMITED – ASX BLD, SOUTH32 LIMITED – ASX S32, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Trump’s surge spooks markets

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Original article by Cameron Stewart, David Rogers
The Australian – Page: 1 & 10 : 3-Nov-16

Sharemarkets in Australia and Asia were sold down on 2 November 2016, after an ABC News/Washington Post poll showed that US presidential candidate Donald Trump now has a one percentage point lead over Hillary Clinton. The RealClear Politics average of polls also shows that Trump has significantly narrowed Clinton’s lead in the last week. Westpac economists have warned that a Trump victory could have a bigger impact on global financial markets than the UK’s Brexit referendum.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, NIKKEI 225 INDEX, HANG SENG INDEX, SHANGHAI COMPOSITE INDEX, KOSPI INDEX, WESTPAC BANKING CORPORATION – ASX WBC, WILSON ASSET MANAGEMENT, REPUBLICAN PARTY (UNITED STATES), DEMOCRATIC PARTY (UNITED STATES)

Perth fundies see more upside in resources

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 : 24-Oct-16

Australia’s S&P/ASX 300 Metals & Mining Index has gained 45.3 per cent so far in 2016, while the benchmark S&P/ASX 200 has risen by just 6.2 per cent. The rebound in the share prices of resources and energy stocks has rewarded investors who capitalised on a sell-off in the sector earlier in the year. WestOZ Funds Management has been progressively lifting its funds’ weightings toward the sector over recent months, while scaling back their exposure to cash.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX 300 METALS AND MINING INDEX, WESTOZ FUNDS MANAGEMENT PTY LTD, WESTOZ INVESTMENT COMPANY LIMITED – ASX WIC, PACKER AND COMPANY INVESTIGATOR TRUST, NORILSK NICKEL, CAMECO CORPORATION, BELL POTTER SECURITIES LIMITED, WOODSIDE PETROLEUM LIMITED – ASX WPL, INDEPENDENCE GROUP NL – ASX IGO, WESTERN AREAS LIMITED – ASX WSA, SANDFIRE RESOURCES NL – ASX SFR

How banks and resources could move in sync

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Original article by David Rogers
The Australian – Page: 31 : 21-Oct-16

The S&P/ASX 200 Materials Index has significantly outperformed the S&P/ASX 200 Banks Index in 2016, with a gain of 29 per cent compared with the latter’s eight per cent fall. Deutsche Bank notes that with the exception of the last four years, the two sectors have both regularly outperformed the broader sharemarket over the last 25 years. In addition, they have often outperformed in tandem. Tim Baker of Deutsche argues that the divergence of the two indices over the last few years suggests that they could be set for a new period of joint outperformance.

CORPORATES
STANDARD AND POOR’S ASX 200 MATERIALS INDEX, STANDARD AND POOR’S ASX 200 BANKS INDEX, DEUTSCHE BANK AG