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Aug 29, 2017

ADVFN Newsdesk - Stocks May Come Under Pressure In Early Trading

 
ADVFN  World Daily Markets Bulletin
Daily world financial news Tuesday, 29 August 2017 10:21:27   
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US Market
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The major U.S. index futures are pointing to a lower opening on Tuesday following the mixed performance seen in the previous session.

Following the lackluster session seen last Friday, stocks continued to show a lack of direction during trading on Monday. The major averages spent the day bouncing back and forth across the unchanged line.

The major averages ended the day mixed. While the Dow edged down 5.27 points or less than a tenth of a percent to 21,808.40, the Nasdaq rose 17.37 points or 0.3 percent to 6,383.02 and the S&P 500 inched up 1.19 points or 0.1 percent to 2,444.24.

The choppy trading on Wall Street came as traders were looking ahead to the release of key economic data in the coming days.

The monthly jobs report is likely to be in focus, with the report expected to show an increase of 180,000 jobs in August.

Reports on consumer confidence, personal income and spending, pending home sales, and manufacturing activity may also attract attention.

Most of the major sectors showed only modest moves on the day, although considerable weakness was visible among energy stocks.The weakness in the energy sector came amid a steep drop by the price of crude oil.

On the other hand, biotechnology stocks showed a strong move to the upside, driving the NYSE Arca Biotechnology Index up by 3 percent.

Kite Pharma (KITE) posted a standout gain after agreeing to be acquired by Gilead Sciences (GILD) for approximately $11.9 billion.

Significant strength was also visible among gold stocks, as reflected by the 4 percent jump by the NYSE Arca Gold Bugs Index. The strength in the sector came amid a sharp increase by the price of the precious metal.


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US Economic Reports
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At 10 am ET, the Conference Board is scheduled to release its report on consumer confidence in the month of August.

The Treasury is due to announce the results of its auction of $28 billion worth of seven-year notes at 1 pm ET.


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Europe markets

European stocks fell sharply on Tuesday as the euro continued to surge higher and North Korea launched a ballistic missile over Japan, reigniting geopolitical worries.

Japanese Prime Minister Shinzo Abe described the missile launch as "an unprecedented, serious and grave threat" to Asia's second-largest economy, adding that he and U.S. President Donald Trump are in complete agreement to hike pressure on North Korea.

The pan-European Stoxx Europe 600 index was down 1.3 percent to reach a six-month low of 367.37 in late opening deals, with losses seen across the board. 

The German DAX was tumbling 1.7 percent, France's CAC 40 index was moving down 1.3 percent and the U.K. 's FTSE 100 was down 1.2 percent. 

Reinsurance companies such as Munich Re and Swiss Re fell over 2 percent as investors assessed losses from the damage caused by Tropical Storm Harvey on the Texas Gulf Coast. 

Advertising giant WPP Group fell 1.7 percent in London after its wholly-owned operating company AKQA acquired a majority stake in digital agency DIS/PLAY in Denmark. 

Gold miners rallied as the precious metal benefited from the risk aversion to trade at 9-1/2 month high. Randgold Resources climbed 3.8 percent and Fresnillo jumped 3 percent. 

Investors ignored survey results from market research group GfK, which showed that German consumer confidence is set to strengthen in September.

The forward-looking consumer sentiment index rose to 10.9 in September from 10.8 in August. The index rose for the fifth successive month to reach its highest level since October 2001.

French GDP grew 0.5 percent sequentially in the second quarter as initially estimated on July 28, while the country's consumer spending climbed 0.7 percent month-over-month in the month to reverse a 0.7 percent drop in June, separate reports from statistical office Insee showed.


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Asia markets
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Asian stocks fell broadly on Tuesday and safe-heaven assets climbed after North Korea launched a ballistic missile over Japan, reigniting geopolitical worries. The missile flew over the northern Japanese island of Hokkaido at 6:06 am local Japanese time, according to Japan's state broadcaster NKH.

Chinese shares shrugged off weak regional cues to end marginally higher as investors looked ahead to the latest readings on the country's manufacturing and service sectors. 

The benchmark Shanghai Composite edged up 2.57 points or 0.08 percent to 3,365.23 while Hong Kong's Hang Seng index was down 98 points or 0.35 percent at 27,765 in late trade. 

Japanese shares fell as the yen surged to four-month highs against the dollar and data on household spending and employment painted a mixed picture of the economy. While household spending unexpectedly fell in July, the jobless rate held steady at a seasonally adjusted 2.8 percent in the month, separate reports showed. 

The Nikkei average ended down 87.35 points or 0.45 percent at 19,362.55 after hitting as low as 19,280.02 to reach its lowest level since May 1 in early trade. The broader Topix index closed 0.15 percent lower at 1,597.76. 

Prime Minister Shinzo Abe described the missile launch by North Korea as "an unprecedented, serious and grave threat" to Asia's second-largest economy, adding that he and U.S. President Donald Trump are in complete agreement to hike pressure on North Korea.

Australian shares fell sharply as the country's big banks extended Monday's losses after the Australian Prudential Regulation Authority launched an independent inquiry into Common Wealth Bank.

The benchmark S&P/ASX 200 fell 40.90 points or 0.72 percent to 5,669 while the broader All Ordinaries index ended down 37.60 points or 0.65 percent at 5,733.60. 

The big four banks fell over 1 percent each, with Commonwealth shares hitting a nine-month low during intra-day trade. Big miners ended mixed while gold miners Evolution, Newcrest and Northern Star Resources rallied 1-3 percent. 

New home sales in Australia declined for the second straight month in July, led by a sharp fall in apartment sales, data from the Housing Industry Association showed today.


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Currency and Commodities Markets

Crude oil futures are slipping $0.14 to $46.43 after plunging $1.30 to $46.57 a barrel on Monday. Meanwhile, after jumping $17.40 to $1,315.30 an ounce in the previous session, gold futures are climbing $12.30 to $1,327.60 an ounce. 

On the currency front, the U.S. dollar is trading at 108.55 yen compared to the 109.25 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $11.2028 compared to yesterday’s $1.1979.


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