* US stock markets were closed overnight for the Labor Day holiday.
* European stock markets held at one month highs, despite rising tensions in the Ukraine which prompted calls for a further round of sanctions. Trading volumes were 36% below the monthly average.
* Asian stock markets recorded their first monthly fall since April, as declining miners weighed.
* Commodities prices flat. Gold prices held at US1,288, while crude-oil held above $US95. Copper rose to US3.16c, Iron Ore price fell to $US87.10, two year lows.
The Australian sharemarket has closed flat paring bck early gain as the 5650 provided resistance once more. The ASX200 closed flat at 0.1%. The Property sector jumped 0.8%, while the Energy sector close up 0.5%, but weighing ion the index were the Tech adn Staples sectors down over -0.5% for the session. A few star performers included Harvey Norman, Clearview Wealth and Mesoblast all up at least 5%.
The SPI 200 futures fell -0.1% to 5,604, giving a subdued lead for the ASX market today, as the US was closed and Europe edged higher after a solid August performance. The 5630 level will be key for the ASX200 today. The Australian dollar rose to US93.3c.
Expect another quiet day on the ASX today, ahead of a busy week for economic data. The RBA is expected to leave rates on hold for a twelfth month at 2.5% and we will get the national accounts report tomorrow.
US stock markets were closed overnight for the Labor Day holiday. There is a busy week ahead for economic data this week with ISM leading economic readings, Auto Sales and culminating in the NFP Monthly jobs report on friday. For the session Dow Jones closed at 17,098 the S&P500 at 2,003 and the NASDAQ closed at 4,580, while the 10-year Treasuries at 2.34%, around twelve month lows.
European stock markets held at one month highs, despite rising tensions in the Ukraine which prompted calls for a further round of sanctions. Trading volumes were 36% below the monthly average.
The Stoxx Europe 600 rose another 0.3% for the session, after rising 1.6% last week and 1.8% in August (the first monthly gain since May). The EU has given the European Commission a week to deliver proposals for sanction that may target Russian energy and financial industries.
In economic news the UK factory gauge fell to a 14 month low and a similar measure for the euro area came in lower than expected. The ECB meets on 4 September, where they are expected to leave rates on hold. The earnings season is complete so traders are looking for additional new catalysts to support the recent rises in stock prices, and are looking to the ECB to address near-term deflation. Traders are speculating the ECB will be introducing QE by the end of the year.
The German market held on to the 1.9% gains from last week, as troubles between Russia and the Ukraine continued to simmer. The London market held at seven week highs, rising 1.3% in August. In the session retailers remained under pressure after Tecso disappointed, while BAE systems rose on a broker upgrade.
For the session the German DAX 30 closed up 0.1% at 9,479, the UK the FTSE 100 closed up 0.1% at 6,828, the French CAC 40 closed down -0.1% at 4,379, while the Spanish market closed up 0.2% at 10,746.
Asian stock markets edged higher, after recording their first monthly fall since April. Traders are betting on central banks from China to Japan will implement further stimulus by the end of the year.
The MSCI Asia Pacific Index rose 0.2% for the session, recovering from the -0.6% fall in August.
Casino companies sold down after official data confirmed total gross gaming revenue in Macau fell -6% in August. Equity valuations had reached their highs for the year, which prompted traders to do some profit taking near-term.
In economic news Chinese PMI for manufacturing fell to 51.1 in August (down from 51.7), below forecasts, but still above the 50 level indicating expansion.
The Chinese market continued higher to a one week high, despite the softer PMI reading, counting higher after last week’s reports on industrial production and foreign fund investments. Investors are pouring into the largest Chinese exchange traded fund at levels not seen since 2012 (net inflows up 25%) as traders bet in Chinese stimulus to pump up the economy. Chinese industrials reported profits rose 13.5% in July (down from 17.9% in June), rising at the best pace since last September.
The Japanese market edged higher after falling -0.9% for the August. The Hong Kong market held below 25,000 again, the index is still 45% below its pre-GFC highs.
For the session the Shenzhen Composite up 0.7% to 2,355, the Hong Kong Hang Seng closed up 0.1% at 24,752, and the Japanese Nikkei closed up 0.3% at 15,476, while the South Korean KOSPI closed down -0.1% at 2,067.
The Dollar Index rose to 82.77 (back at its highest level for a twelve months) on a lower Euro, and the Aussie Dollar rose to US93.3c. Commodities prices flat.
Overnight the NYMEX WTI Crude up 0.1% to $US95.80, the COMEX Copper closed up 0.3% at 3.16, the COMEX Gold closed up 0.1% at $US1,288.00.
HVN – Harvey Norman rose again after it turned around two years of declining profit, posting higher earnings and sales in the year to June.
QAN – Qantas hit some turbulence, after rcoketing higher last week after reporting. Last week Qantas announced an upbeat outlook for fiscal 2015, even after it posted its worst ever loss of $2.8 billion.
QFX – Quickflix the movie and TV streaming service has blown out its full year loss over $10 million after ramping up spending to attract new customers.
NAB – National Australia Bank will float its US subsidiary Great Western Bank as it looks to focus on its core Australian and New Zealand operations.
NST – Northern Star Australia’s second largest gold miner plans to triple its exploration budget to $50 million as competitors cut back spending.
NBL – Noni-B the troubled fashion retailer is preparing to make an announcement about a potential material transaction, which follows a strategic review of the company’s future by its major shareholders.
PPT – Perpetual says stronger share markets and cost cutting have contributed to 34% growth in wealth manager’s annual profit.
SCG – Scentre Group the operator of Westfield shopping centres in Australia and NZ says it would consider selling partial stakes in some of its centres.
RHC – Ramsay Health Care, Australia’s biggest private hospitals operator, says it has delivered its best financial results since listing on the Australian share market.
TSE – Transfield Services the maintenance and asset management firm has returned to profit and expects its positive momentum to continue its shares surged 24% higher.
WOW – Woolworths reported net profit rose 8.5% to $2.45 billion in 2014 as higher food and liquor margins offset wider than expected losses from home improvement and weaker earnings at BIG W.
ASX – to open flat
US & Europe – US closed, EU higher
By Michael Hevern D2MX Investment Advisor For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email firstname.lastname@example.org.