Morning Podcast : 3 Jan 2019 - volatile trade as investors grapple with growth concerns

US sharemarkets were choppy on Wednesday. The S&P500 energy sector (+2.1%) was a strong performer as crude oil prices rallied. Schlumberger (+3.1%), Exxon Mobil (+2.2%) and Chevron (+1.8%) led gains. And S&P500 bank shares rose by 1.8%, boosted by Barclay's forecast that US large-cap bank shares could outperform the S&P in 2019. Goldman Sachs shares were up by 3.0%. But the S&P500 utilities sector (-1.8%) lagged. Tesla shares fell 6.8% after the electric car maker delivered fewer-than-expected Model 3 sedans in Q4 18 and cut prices for all its vehicles in the US in response to the loss of a green tax credit. At the close of trade, the Dow Jones was up by 18 points or 0.1%, rising as high as 86 points and falling as low as 398 points earlier in the session. The S&P500 index rose by 0.1% and the Nasdaq index rose by 30 points or 0.5%.  

 

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399, AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124, AFSL 234945 (the Bank).  The Bank and its subsidiaries have effected or may effect transactions for their own account in any investments or related investments referred to in this report. This report is not a recommendation to buy, sell or hold any securities or financial products, and has been prepared without taking account ofobjectives, financial or taxation situation or needs of any particular individual.  For this reason, any individual should, before acting on the information in this report, consider the appropriateness of the information, having regard to the individual's objectives, financial or taxation situation and needs and, if necessary, seek appropriate professional advice.  This report is produced by Commonwealth Research based on information available at the time of publishing.  We believe that the information in this correspondence is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness.  To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report.