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ASX is ready for the edge to the higher level



The chief investment officer of Guggenheim, Scott Minner, wrote a twitter: "The #Fed He reloaded the punjab and the party continues. It is time to consider buying risky assets. "

US policy makers voted to maintain their key interest rate and signaled a potential prolonged break by the end of the year.

In a separate statement, the Federal Reserve signaled that it was far closer to the end of its second round of balance sheet than previously expected.

Iron ore and base metals rose overnight, strengthened stocks in mining companies, which helped FTSE 100 abolish 1.6 percent. In London, BHP closes 2.6 percent and Rio for 1.7 percent.

"The rally through metals with copper and nickel registers fresh heights for the year before giving up some of their benefits," according to the Marex spectrum. "Only these two metals registered significantly above the average turnover.

"Crude also resumed its move following a recent announcement of US sanctions for Venezuelan oil, in addition to supporting DOE and technical means. It climbed to the base despite the pickup of the dollar in the afternoon, albeit modestly, with the number of employees in the ADP for Jane is coming higher than expected in 213k (tin 181k). We are waiting for news from a two-day meeting between the United States and China that began this afternoon. "

Stocks in Europe have also advanced, although Italy has confirmed the data to be released tomorrow, will show that the country's economy is in recession.

In European companies listed on the STOXX 600 index, it is currently expected to release 3.6 per cent growth over a year in the fourth quarter, which is significantly lower than the 4.8 per cent forecast last week.

"We see expectations for a surge in earnings for 2019 as still too high. We are probably still between 8 or 9 percent growth for this year, and this will probably need to be reduced to low-to-enumerated single digits," says British Weidenbach European shares of DWS, said.

"What is interesting is that some of the actions have already been punished so hard in the recent crisis, especially at the end of last year, that in fact they react positively to results that are, in some ways, disappointing," Weidenbach said.

Apple shares were higher, as investors seemed to be eased from the news that the main non-iPhone products generated higher sales even when iPhone's revenue was retreating. Facebook climbed a few hours after winning over estimates. Microsoft dropped a few hours after the results were missed. Tesla was also less than a few hours after publishing his latest results.

A few months ago, "there was really great concern about global growth," Bloomberg said Chris Zakerelli, chief investment officer at the Alliance of Independent Advisers in Charlotte, North Carolina. "When you see big companies coming up with or not-as-bad earnings as expected or better looking than previously believed, that's why you see some of these bounce back.

Today's agenda

Local data: Sales price indices for the fourth quarter

Overseas data: Japan industrial production December; Unemployment rate in the euro area December, GDP fourth quarter UK GfK consumer sentiment in January; US Employment Expenditure Index Fourth Quarter, Personal Income and Expenditure December, Chicago PMI January (Note: US data are rescheduled as a result of partial disconnection of the US government).

Highlights on the market

SPI futures to 20 points or 0.3% to 5847 at around 8 am AEDT

AUD + 1.3% to 72.49 US cents

On the wall St. near at 16 o'clock: Dow + 1.8%& &P 500 + 1.5% Nasdaq + 2.2%

In New York, BHP + 3.3% Rio + 1.5% Atlas + 2%

In Europe: Stoxx 50 + 0.3% FTSE + 1.6% CAC + 1% DAX -0.3%

Place gold -0.1% to $ 1310.97 per ounce at 12.47 pm in New York time

Brent crude oil + 1.7% to $ US62.39 per barrel

US oil + 2.7% to $ US54.73 per barrel

Iron ore + 4.9% to $ US82.53 per ton

Dalian iron ore + 0.7% to 582 yuan

LME Aluminum + 0.8% to $ 1909.50 tons

LME copper + 1.4% to $ US6136 tons

2-year yield: US 2.58% Australia 1.79%

5-year yield: US 2.56% Australia 1.88%

10-year yield: US 2.73% Australia 2.24% Germany 0.19%

USA-Australia 10-year yield on the 4.44 am AEDT: 49 basis points

From today's financial review

Banks "do not blame" for house recession: Westpack chief executive Brian Harter said one of the unintended consequences of a housing loan recession is "to punish small businesses."

"House crash" from a credit crunch: House prices will fall another 10 percent in 2019, while banks are forced to exterminate unrealistic spending measures, says Douglas Orr of Endeavor Equity Strategy.

United States

Apple's shares jumped 6.8 percent after the company announced a sharp growth in the service business, easing concern since iPhone maker earlier this month lowered its sales forecast for the current quarter.

Boeing Co received 6.3 per cent since the world's largest airline projected a full year profit and cash flow over analysts' estimates in terms of boom in air traffic and faster production of 737 vehicles.

After the announcement of the Fed's rate, all three major stock indexes in the US have increased earnings from earlier in the session and S& &P 500 closed at its highest since December 6.

Facebook sales, profit estimates: Facebook posted revenue and daily active user data that beat Wall Street estimates. Its shares increased after several hours of trading.

The National Employment Report of the ADP showed that private payrolls increased by 213,000 in January after an increase of 263,000 in December. Economists surveyed by Reuters presented private pay lists, which announced 178,000 in January.

According to Reuters research for economists, non-farm salaries, due to be announced on Friday, are likely to increase by 165,000 jobs in January, following a jump of 312,000 in December. The unemployment rate is forecast to remain unchanged at 3.9 percent.

In a separate report, the National Real Estate Agents Association said its domestic home sales index, based on contracts signed last month, fell from 2.2 percent to 99.0, the weakest reading since April 2014.

Europe

Luxury stocks were a silver streak for European markets on Wednesday after strong LVMH results.

Europe STOXX 600 traded aside before closing up to 0.3 percent and was on track for its best monthly performance since October 2015.

The British FTSE 100 jumped 1.6 percent thanks to the weaker pound that was boosted by multinational exporters from London.

The German payment company Wirecard was the worst performer in the pan-European index, fell by 13.3 percent, because it denied the report in The Financial Times who alleged financial misdemeanor.

Frankfurt was among the few regional indices traded in a negative territory and sent shares of the blue-chip DAKS member sharply reduced.

French stock LVMH jumped 6.7 percent after optimistic results from the luxury conglomerate, who said he was "cautious" confident that sales in the fourth quarter were held despite fears of slowdown in China.

"This healthy set of numbers, coupled with a positive tone of management, should provide investors with much-needed comfort for the current trends in the luxury market," said Berenberg analysts.

Hermes, owner of Gucci, Kerring, Monkler and Burberry, were amongst the first reinforcements of STOXX 600, rising 3.1 to 5.9 percent.

Even Italian Salvatore Ferragamo, who reported a drop in sales, climbed 1.5 percent, while LMMX's victory lifted the luxury sector.

Italian Prime Minister Giuseppe Conte said he expects data to show that the country's economy shrank in the fourth quarter, and lowered Italy into a recession that is likely to push plans for spending the populist government.

"I expect further contraction of gross domestic product in the fourth quarter," Conte said at an event in Milan, which was broadcast on Facebook. "Analysts tell us that we are likely to suffer a bit at the beginning of this year, but all the elements are there to recover in the second half of the year."

The country's statistics office should announce the preliminary GDP figures in the fourth quarter Thursday at 11 am local time in Rome. Conte did not specify whether he had seen the numbers ahead of time.

Asia

At the end of the Hong Kong trade, the Han Seng index rose 0.4 percent to 27,642.85 points, while the Han Seng China Enterprise Index rose 0.3 percent. Hang Seng's energy index sub-index ended at 1 percent tighter, while the IT sector closed 0.5 percent higher, the financial sector ended 0.3 percent higher, and property increased by 1.1 percent.

The main Chinese index of Shanghai Composite closed 0.7 percent to 2,575.58 points, while the CSI300 blue-chip index ended 0.8 percent lower, amid concerns about China's economic growth.

The National People's Congress, China's rubber brand parliament, will vote on a new foreign investment law that will replace the three existing laws during a session scheduled for opening on March 5th, the official Xinhua news agency said on Wednesday. It will certainly be approved.

"There is an urgent need for such a unified law that will provide stronger legal protection for the further dissemination, opening up and better use of foreign investment," Justice Minister Fu Zhenghua told lawmakers when he presented the bill during a special two-day session of the Congress this week.

The speed with which China passes the bill – Beijing will do in three months what usually lasts for at least a year – emphasizes President Xi Jinping's desire to reach an agreement and resolve the dispute.

Xi appears to be worried that a trade war will aggravate the economic slowdown that is already under way, analysts say.

Currencies

Irish central bank chief Philippe Lane is the only candidate to replace Peter Press, chief economist at the European Central Bank in May, practically ensuring that the key ECB post will remain with a decision maker. Lane, 49, led the central bank of Ireland by 2015.

TD securities on the return plans of the United States: "As expected, the return in February did not bring new increases in coupon auctions sizes for the first time since November 2017. Treasury will auction $ US38bn in 3s, $ US27bn in new 10 and $ US19bn in the new 30s next week.

"The procurement proposal should increase by about US $ 115bn (with the exception of CMBs) over the next two months, but should then be mitigated in early April. The Treasury has said that limiting the debt limitations could forced to keep a smaller cash balance, supplying cash accounts ".

TD also said that "the lack of further increases in the auction should be a modest successor to Treasuries. This could help tighten the Treasury-OIS (even when the spread has already been strained recently) and expand the spread of the front end of exchange ".

JPMorgan increased the estimate of the amount of surplus reserves that the Federal Reserve would put in the US banking system to $ 1 trillion, double that it had previously projected.

The latest estimate suggests that the US central bank will put an end to the normalization of its balance sheet, amounting to around $ 3.5 billion at the beginning of the second quarter of 2020, writes JPMorgan economist Michael Ferroli in one research note.

BIDS

Iron ore could jump to a 100-dollar mark: the price of iron ore is back on the spot, and can rise even higher in the coming weeks.

Nickel prices on Wednesday rose to a three-month high, as investors worry that one of the world's largest producers, Vale, could cut supply in an already difficult market. The referent nickel on the London Metals Exchange (LME) closed 1.9 percent to $ 12,350 per tonne. The stock of non-ferrous steel hit more than two-year fall on January 2, as concerns about China's slowing economic growth have lowered demand expectations, but since then about 17 percent have gathered, while supply shortages have reduced inventory exchange.

LME copper finished at 1.4 percent to $ 6136 per tonne, after 12,500 tonnes of failures reduced LME repositories to 104,950 tonnes, bringing back the recent benefits and raising levels to a low of 56,650 tonnes in October.

Aluminum finished 0.8 percent to $ 1909.50 per tonne, zinc rose 1.1 percent higher to $ 26686, lead increased by 0.7 percent to $ 2020, and tin increased by 0.6 per cent of $ 20,800.

Australian Sharemarket

Australian stocks on Wednesday were higher than strong gains in the mining sector, although a sharp drop in the national carrier Qantas retained the market.

S.& &The P / ASX 200 indexes gained 16 points, or 0.2 percent, to 5887, while the All Ordinary Index gained 12 points, or 0.2 percent, to 5951.

Among the well-run miners, "North Star Resources" jumped 4.1 percent to $ 8.64, and western areas rose 3.3 percent to $ 2.19.

Street talk

Brookfield, North West speak property like Healthscope heats up

US supervisor Oaktree minimizes Downer EDRI for a deal

UBS requires buyers for a $ 400 million block Goodman Group

with Reuters, Bloomberg, AAP

Comments? Questions? Let us know what you think about the bell: timothy.moore@fairfaxmedia.com.au


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