{"id":83020,"date":"2019-10-10T08:50:43","date_gmt":"2019-10-09T21:50:43","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=83020"},"modified":"2019-10-10T10:12:16","modified_gmt":"2019-10-09T23:12:16","slug":"the-overnight-report-whiplash-3","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2019\/10\/10\/the-overnight-report-whiplash-3\/","title":{"rendered":"The Overnight Report: Whiplash"},"content":{"rendered":"\n\n\n\n\n\n\n\n\n\n\n\n\n
World Overnight<\/strong><\/span><\/td>\n<\/tr>\n
SPI Overnight (Dec)<\/strong><\/span><\/td>\n6555.00<\/strong><\/span><\/td>\n+ 41.00<\/strong><\/span><\/td>\n0.63%<\/strong><\/span><\/td>\n<\/tr>\n
S&P ASX 200<\/strong><\/span><\/td>\n6546.70<\/strong><\/span><\/td>\n– 46.70<\/strong><\/span><\/td>\n– 0.71%<\/strong><\/span><\/td>\n<\/tr>\n
S&P500<\/strong><\/span><\/td>\n2919.40<\/strong><\/span><\/td>\n+ 26.34<\/strong><\/span><\/td>\n0.91%<\/strong><\/span><\/td>\n<\/tr>\n
Nasdaq Comp<\/strong><\/span><\/td>\n7903.74<\/strong><\/span><\/td>\n+ 79.96<\/strong><\/span><\/td>\n1.02%<\/strong><\/span><\/td>\n<\/tr>\n
DJIA<\/strong><\/span><\/td>\n26346.01<\/strong><\/span><\/td>\n+ 181.97<\/strong><\/span><\/td>\n0.70%<\/strong><\/span><\/td>\n<\/tr>\n
S&P500 VIX<\/strong><\/span><\/td>\n18.64<\/strong><\/span><\/td>\n– 1.64<\/strong><\/span><\/td>\n– 8.09%<\/strong><\/span><\/td>\n<\/tr>\n
US 10-year yield<\/strong><\/span><\/td>\n1.59<\/strong><\/span><\/td>\n+ 0.05<\/strong><\/span><\/td>\n3.38%<\/strong><\/span><\/td>\n<\/tr>\n
USD Index<\/strong><\/span><\/td>\n99.12<\/strong><\/span><\/td>\n– 0.01<\/strong><\/span><\/td>\n– 0.01%<\/strong><\/span><\/td>\n<\/tr>\n
FTSE100<\/strong><\/span><\/td>\n7166.50<\/strong><\/span><\/td>\n+ 23.35<\/strong><\/span><\/td>\n0.33%<\/strong><\/span><\/td>\n<\/tr>\n
DAX30<\/strong><\/span><\/td>\n12094.26<\/strong><\/span><\/td>\n+ 124.06<\/strong><\/span><\/td>\n1.04%<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

By Greg Peel<\/p>\n

Pass the Sunblock<\/u><\/p>\n

It’s all getting a bit crazy. In a week in which by rights global markets should be stalled ahead of pending trade talks nothing could be further from the truth.<\/p>\n

On Tuesday the ASX200 rallied in defiance of Wall Street, picking up from Monday’s holiday, but I said yesterday there was no need to go into detail because Wall Street tanked on Tuesday night and our futures were down -65 points.<\/p>\n

Sure enough, the index dropped -70 points in the first half hour but there found some buying. While encouraging, it’s all a bit academic given we closed down -47 and on a Wall Street rebound, our futures are this morning up 41.<\/p>\n

If you’re sitting on a beach somewhere with the kids this week, you made the right choice. If only computers took holidays.<\/p>\n

But anyway…<\/p>\n

Consumer discretionary was the star sector on Tuesday and the dud yesterday, falling -1.7% following a profit warning from Flight Centre ((FLT)). That stock fell -11.7% to be the worst index performer on the day.<\/p>\n

But it was not just Flight Centre. The Westpac consumer confidence index has fallen -5.5% to 92.8 this month – the lowest since July 2015 – indicating accelerating pessimism (100 is neutral). The RBA will not be amused.<\/p>\n

Staples (-1.1%) were also sold, along with oil price-driven energy (-1.6%), while the banks (-0.8%) represented a lot of negative index points as another round of remediation provision top-ups plays out.<\/p>\n

Telcos (+0.3%) bucked the trend following a broker upgrade for Telstra ((TLS)) while industrials hung in there (+0.1%). Cleanaway Waste Management ((CWY)) rose 6.2% after announcing it had acquired the assets of corporate failure SKM Recycling.<\/p>\n

But daylight was second on the leaders’ board behind biotech Clinuvel Pharmaceuticals ((CUV)), for which FDA approval of its skin treatment was worth a 60% leap.<\/p>\n

Today’s another day…<\/p>\n

Will they, won’t they?<\/u><\/p>\n

On Monday the White House announced the addition of 28 Chinese security and technology companies to the “black list”, meaning US companies are not allowed to sell to them, due to their involvement in Uighur minority oppression. On Tuesday the White House topped that up with visa bans on related individuals. Wall Street tanked on the implication of trade talk tensions.<\/p>\n

But the morning’s news was that Chinese officials were displeased with the black list additions but were still prepared to accept a limited deal this week as long as the tariff increase on one tranche of goods to 30% from 25% planned from October 15 is withdrawn, along with tariffs on a new tranche of consumer goods set for December.<\/p>\n

In return, China would increase purchases of US agri-products by 50%, but would not at this stage move on the major sticking points, being IP and technology transfers.<\/p>\n

And nothing ever happens, nothing happens at all
\nThe needle returns to the start of the song
\nAnd we all sing along like before<\/em><\/p>\n