Mon 11 Sep 2017


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In Portfolioticker today

Today at the stock market

bull/bearThe S&P 500 surged over 1% to a record high close on Monday as tropical storm Irma caused less damage than expected in Florida, and after North Korea did not test-fire missiles over the weekend, which some had feared.

  • The S&P 500 gained 1.08% to 2,488.11.
  • The Dow Jones Industrial Average rose 1.19% to end at 22,057.37 points in its largest one-day gain since Feb 2017.
  • The Nasdaq Composite added 1.13% to 6,432.26.
  • Advancing issues outnumbered declining ones on the NYSE by a 3.73-to-1 ratio; on Nasdaq, a 2.56-to-1 ratio favored advancers.
  • About 6 billion shares changed hands in U.S. exchanges, above the 5.8 billion daily average over the last 20 sessions.
  • The CBOE volatility index (VIX), a widely-followed measure of market anxiety, fell 1.36 points to 10.76.

All 11 major S&P 500 sectors rose, led by financial stocks, with insurers advancing as Irma, once ranked as one of the most powerful hurricane recorded in the Atlantic, lost power. The S&P 500 financial index jumped 1.74%, with JPMorgan up 2.18% and insurer Travelers up 2.34%.

With investors less worried about Irma’s impact, insurers Universal Insurance Holdings and HCI Grou surged more than 12%, while Heritage Insurance soared 21%.

So far in 2017, the S&P 500 has risen 10%. It is trading near 17.6 times expected earnings, compared to its 10-year average of 14.3, according to Thomson Reuters Datastream.

“Valuations don’t bother me terribly,” said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York. “I don’t think we’re at a level where valuations themselves are going to cause a correction.”

Apple rose 1.81% a day ahead of the expected launch of a new iPhone, providing the biggest boost to the Nasdaq and S&P 500.

Tesla jumped 5.91% on news that China was studying when to ban the production and sale of cars using traditional fuels.

Irma caused severe flooding in many Florida cities and left more than 6 million homes and businesses without power, but damage appeared to be less than expected. That relieved investors, especially in the wake of Hurricane Harvey, whose devastation is estimated to dent third-quarter economic growth.

Geopolitical tensions eased after North Korea did not mark its founding day on Saturday with another launch of a long-range missile, which the United States and its allies had been bracing for.

“It is a risk back on situation, people are going back into the market. For now, it is a relief rally for things on both ends – geopolitical and weather wise”, said Neil Massa, senior equity trader at Manulife Asset Management in Boston.Reuters

Market indices

Market indices
^ Market indices today (mouseover for 12 month view) Chart: Google Finance

:-) The S&P500 Index closed at a record high of 2,488.11.

Index Ticker Today Change 31 Dec 16 YTD
S&P 500 SPX (INX) 2488.11 +1.08% 2238.83 +11.13%
DJIA INDU 22057.37 +1.19% 19762.6 +11.61%
NASDAQ IXIC 6432.26 +1.13% 5383.12 +19.48%

read_this Portfolio Indices

USD and AUD denominated indices over the past 52 weeks (Chart: Bunting)
^ USD and AUD denominated indices over the past 52 weeks Chart: Bunting

Index values

Index Currency Today Change 31 Dec 16 YTD
USD-denominated Index USD 2.861 +1.53% 2.105 +35.91%
Valuation Rate USD/AUD 0.80771 -0.32% 0.72663 +11.15%
AUD-denominated Index AUD 3.545 +1.84% 2.895 +22.46%

Portfolio stock prices

:-) Ebay closed on a record $38.09, beating its 7 Sep 2017 record of $38.01.
:-) Facebook closed on a record $173.51, beating its 7 Sep 2017 record of $173.21.
:-) PayPal closed on a record $62.64, beating its 7 Sep 2017 record of $62.00.
:-) Visa closed on a record $106.15, beating its 7 Sep 2017 record of $104.56.

Stock Ticker Today Change 31 Dec 16 YTD
Alphabet A GOOGL $943.29 +0.19% $792.45 +19.03%
Alphabet C GOOG $929.08 +0.27% $771.82 +20.37%
Apple AAPL $161.50 +1.80% $115.82 +39.44%
Amazon AMZN $977.96 +1.24% $749.87 +30.41%
Ebay EBAY $38.09 +0.79% $29.69 +28.29%
Facebook FB $173.51 +1.49% $115.05 +50.81%
PayPal PYPL $62.64 +2.47% Opinion $39.47 +58.70%
Twitter TWTR $17.66 +1.20% $16.30 +8.34%
Visa V $106.15 +1.64% $78.02 +36.05%
VMware VMW $107.72 +1.52% $78.73 +36.82%

FX: USD/AUD

USD

DXY movements
^ Bloomberg Dollar Spot Index (DXY) movements today (mouseover for 12 month view) Chart: Bloomberg

The Bloomberg Dollar Spot Index (DXY) gained 0.5% for the first advance in more than a week.
The EUR declined 0.7% to USD 1.1952, the first retreat in more than a week.
Japan’s JPY sank 1.5%, the most since Jan 2017, to 109.45 per USD.
Russia’s RUB posted the biggest advance in emerging markets, climbing 0.3%.
Bloomberg

AUD

AUD movements
^ AUD movements against the USD today (mouseover for 12 month view) Chart: xe.com

Oil and Gas Futures

Futures prices

Prices are as at 15:49 ET

  • NYMEX West Texas Intermediate (WTI): $48.03/barrel +1.16% Chart
  • ICE (London) Brent North Sea Crude: $53.75/barrel -0.06% Chart
  • NYMEX Natural gas futures: $2.94/MMBTU +1.83% Chart

flag_japan Japan update

Currency: USD/JPY

JPY movements
^ JPY movements against the USD over the past month (mouseover for inverse) Chart: xe.com

Stockmarket: Nikkei 225

N225 movements
^ Nikkei N225 movements over the past week Chart: Google Finance

flag_china China update

Monthly Report on Consumer Price Index (CPI). Aug 2017

Preview: Trading Economics

cn_cpi_te_20170911

China’s consumer prices rose 1.8% year-on-year in Aug 2017, following a 1.4% rise in Jul 2017 while market expected a 1.6% gain. It was the highest inflation rate since Jan 2017, as cost of non-food rose at a faster pace and cost of food fell much less than in a month earlier. On a monthly basis, consumer prices rose 0.4%, after gaining 0.1% in Jul 2017 and slightly above estimates of a 0.3% rise. It was also the highest monthly figure since Jan 2017. Inflation Rate in China averaged 5.33% from 1986 until 2017, reaching an all time high of 28.40% in Feb 1989 and a record low of -2.20% in Apr 1999.TradingEconomics

Press Release Extract [cn_cpi]

In August 2017, the consumer price index (CPI) went up by 1.8 percent year-on-year. The prices grew by 1.9 percent in cities and 1.5 percent in rural areas. The food prices went down by 0.2 percent, and the non-food prices increased 2.3 percent. The prices of consumer goods went up by 1.0 percent and the prices of services grew by 3.1 percent. On average from January to August, the overall consumer prices were up by 1.5 percent from the same period of the previous year.

In August, the consumer prices increased 0.4 percent month-on-month. Of which, prices increased 0.4 percent in cities and 0.5 percent in rural areas. The food prices went up by 1.2 percent, and the non-food prices went up by 0.2 percent. The prices of consumer goods increased 0.5 percent, and the prices of services increased 0.2 percent.

cn_cpi_20170911

Year-on-Year Changes of Prices of Different Categories

In August, prices of food, tobacco and liquor, went up by 0.4 percent year-on-year, affecting nearly 0.13 percentage points increase in the CPI. Of which, the prices of fresh vegetables, went up by 9.7 percent, affecting nearly 0.22 percentage points increase in the CPI; eggs, up by 4.3 percent, affecting nearly 0.03 percentage points increase in the CPI; aquatic products, up by 3.8 percent, affecting nearly 0.07 percentage points increase in the CPI; grain, up by 1.6 percent, affecting nearly 0.03 percentage points increase in the CPI; meat, down by 8.4 percent, affecting nearly 0.42 percentage points decrease in the CPI (price of pork was down by 13.4 percent, affecting nearly 0.39 percentage points decrease in the CPI).

In August, the prices of all the other seven categories increased year-on-year. Of which, the prices of health care, residence, education, culture and recreation, increased 5.9, 2.7 and 2.5 percent respectively, other articles and services increased 1.4 percent, clothing, household articles and services, increased 1.3 percent, transportation and communication increased 0.7 percent.

cn_cpi_types_20170911

Month-on-Month Changes of Prices of Different Categories

In August, prices of food, tobacco and liquor went up by 0.9 percent month-on-month. Of which, prices for eggs, went up by 13.5 percent, affecting nearly 0.07 percentage points increase in the CPI; fresh vegetables, up by 8.5 percent, affecting nearly 0.20 percentage points increase in the CPI; meat, up by 0.7 percent, affecting nearly 0.03 percentage points increase in the CPI (price of pork was up by 1.3 percent, affecting nearly 0.03 percentage points increase in the CPI); fresh fruits, went down by 4.2 percent, affecting nearly 0.07 percentage points decrease in the CPI; aquatic products, down by 1.1 percent, affecting nearly 0.02 percentage points decrease in the CPI.

In August, among the prices of the other seven categories, five increased and two decreased. Of which, the prices of health care, residence, transportation and communication, increased 0.7, 0.4 and 0.3 percent respectively, other articles and services, household articles and services, increased 0.2 and 0.1 percent respectively, clothing, education, culture and recreation, decreased 0.2 and 0.1 percent respectively.

National Bureau of Statistics of China, “Monthly Report on Consumer Price Index (CPI)“, 9 Sep 2017 More

Monthly Report on Producer Prices (PPI) for the Industrial Sector. Aug 2017

Preview: Trading Economics

cn_ppi_te_20170911

The producer price index in China increased by 6.3% in Aug 2017, compared to a 5.5% rise in the previous 3 months and above estimates of a 5.6% gain. It was the 12th straight month of increase in producer inflation and the highest since Apr 2016, as prices rose more than in a month earlier for means of production (8.3% from 7.3%, namely extraction: 18.2%, raw materials: 11.0% and processing: 6.4$). Also, cost of consumer goods went up slightly faster (0.6% from 0.5%, namely food production: 0.7%, clothing: 1.4% and daily use goods: 0.8%). Meanwhile, prices of consumer durable goods were unchanged, the same as in Jul 2017. On a monthly basis, producer prices rose 0.9%, much faster than a 0.2% gain in Jul 2017. Producer Prices Change in China averaged 1.13% from 1995 until 2017, reaching an all time high of 13.47% in Jul 1995 and a record low of -8.20% in Jul of 2009.TradingEconomics

Press Release Extract [cn_ppi]

In August 2017, Producer Price Index (PPI) for manufactured goods increased 6.3 percent year-on-year, and increased 0.9 percent month-on-month. The purchasing price index for manufactured goods increased 7.7 percent year-on-year, and increased 0.8 percent month-on-month. On average from January to August, the PPI increased 6.4 percent year-on-year, the purchasing price index for manufactured goods went up by 8.4 percent year-on-year.

Year-on-Year Changes of Prices of Different Categories

The year-on-year change of producer prices for means of production increased 8.3 percent, meaning 6.1 percentage points increase in the overall price level. Of which, producer prices for mining and quarrying industry increased 18.2 percent; that of raw materials industry increased 11.0 percent; that of manufacturing and processing industry increased 6.4 percent. Producer prices for consumer goods increased 0.6 percent year-on-year, meaning 0.2 percentage points increase in the overall price level. Of which, producer prices for foodstuff increased 0.7 percent, that of clothing increased 1.4 percent, that of commodities went up by 0.8 percent, and that of durable consumer goods remained at the same level (the amount of change was 0, similarly hereinafter).

cn_ppi_20170911

The year-on-year purchaser price indices for ferrous metal materials increased 15.4 percent, non-ferrous metal materials and wires went up by 15.3 percent, fuel and power increased 11.8 percent, building materials and non-metallic went up by 9.5 percent.

cn_ppi_20170911

Month-on-Month Changes of Prices of Different Categories

The producer prices for means of production increased 1.2 percent month-on-month, meaning 0.9 percentage points increase in the overall price level. Of the total, producer prices for mining and quarrying industry increased 1.8 percent, that of raw materials industry increased 1.7 percent, that of manufacturing and processing industry increased 1.0 percent. Producer prices for consumer goods increased 0.1 percent, month-on-month. Of which, producer prices for foodstuff increased 0.3 percent, that of clothing remained at the same level, that of durable consumer increased 0.2 percent, and that of commodities decreased 0.1 percent.

The month-on-month purchaser price indices for non-ferrous metal materials and wires went up by 2.5 percent, ferrous metal materials increased 2.4 percent, fuel and power went up by 0.7 percent.

National Bureau of Statistics of China, “Monthly Report on Producer Prices for the Industrial Sector“, 9 Sep 2017 More

Currency: USD/CNY

CNY movements
^ CNY movements against the USD over the past month (mouseover for inverse) Chart: xe.com

Stockmarket: CSI300

CSI300 movements
^ Shanghai CSI300 movements over the past week Chart: Google Finance