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Morning (AM) Market Report

Financial shares led US stocks lower overnight to end a three-day rally as investors awaited comments from Federal Reserve Chair Jerome Powell at the end of the week.

Wednesday, 21st August, 2019

China stocks ended slightly lower as investors took a breather following a strong rally in the previous session and pondered the extent and impact of Beijing's interest rate reform. The blue-chip CSI300 index fell 0.1 percent, to 3,787.73, while the Shanghai Composite Index eased 0.1 percent, to 2,880.00 points. In Hong Kong, stocks ended lower as investors locked in profit after a four-day winning streak following Beijing's interest rate reform, which boosted riskier assets and tempered recession fears. The Hang Seng index ended down 0.2 percent at 26,231.54, while the China Enterprises Index closed 0.2 percent higher at 10,132.77. Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.36%, while Japan's Nikkei index closed up 0.55 percent.

European shares fell after two sessions of robust gains as optimism over hopes of stimulus in major economies waned and investors awaited more guidance from central banks. Concerns about Italy's government further dented sentiment, though Italian bond yields fell after Prime Minister Giuseppe Conte said he would resign, potentially paving the way for a new coalition government. The pan-European STOXX 600 index which rose in the early hours of trading reversed course in the afternoon to end 0.7 percent lower. Madrid shares led the declines.

Financial shares led US stocks lower overnight to end a three-day rally as investors awaited comments from Federal Reserve Chair Jerome Powell at the end of the week. The S&P 500 financial index dropped 1.4 percent and the group weighed most heavily on the benchmark index among its major sectors, which all registered losses. The Fed's moves have drawn close attention as US economic growth has moderated and the US-China trade dispute has weighed on business confidence. On Tuesday, President Trump said his administration was looking at cuts to payroll and capital gains taxes.

The Dow Jones Industrial Average fell 173.35 points, or 0.66 percent, to 25,962.44, the S&P 500 lost 23.14 points, or 0.79 percent, to 2,900.51 and the Nasdaq Composite dropped 54.25 points, or 0.68 percent, to 7,948.56.

Ahead of the local open SPI futures are 46 points lower at 6,454.

Foreign Equities Close Change % Change 
Dow Jones (US) 

25962

-173

-0.66
FTSE 100 Index 7125 -65 -0.90
HKSE 26232 -60 -0.23
NASDAQ 7949 -54 -0.68
Nikkei 225 (Japan) 20677 114 0.55
NZ50 10804 101 0.95
S&P 500  2901 -23 -0.79
Commodities US$ Close Change % Change 
Aluminium  /t 3mth 1752 -11 -0.65
Copper  /t 3mth 5683 -63 -1.09
Gold  /oz 3mth 1505 -1 -0.07
Lead  /t 3mth 2058 6 0.30
Nickel  /t 3mth 15879 -64

-0.40

Oil - West Texas Crude  /t 3mth 56.1 -- --
Zinc  /t 3mth 2217 -34 -1.51
Currency Close Pts Change % Change 
$A vs $US 0.6777 0.0024 0.35
$A vs GBP 0.5569 0.0001 0.02
$A vs EUR 0.6106 0.0013 0.21
$A vs YEN 72.03

0.05

0.07
$A vs NZD 1.0563 0.0019 0.18