Markets and You

Euro Advanced Despite ECB Warning on Volatility 

Euro soar higher on optimism that the ECB would soon taper its QE program while the dollar dropped on weak economic data and as another major hurricane is set to hit the United States.

In the day's most anticipated event, the European Central Bank refrained from changing policy although some analysts were expecting an announcement regarding the tapering of its asset purchase (QE) program. 

Despite the dovish outcome, euro/dollar rose sharply, rising north of 1.20 to 1.2058, just shy of the previous week's 1.2069, which was its highest level since December of 2014. Trading in the pair was volatile today, moving between 1.1920 and 1.2050.

During the press conference that followed the announcement, ECB President Mario Draghi warned against excessive volatility in the euro as he showed some signs of displeasure from the recent surge in the single currency. 

The market pretty much ignored Draghi's concerns and pushed the euro higher. Euro/pound also rallied to only briefly pierce the 0.92 mark but dropped back to around 0.9175. The euro also rose to trade above the 131 level against the yen, in a broad move higher for the currency.

Draghi also upgraded the ECB's growth forecast to 2.2% this year, while also downgrading the inflation forecasts of the next two years to 1.2% and 1.5% for 2018 and 2019 respectively. While promising to keep the 60 billion euros a month pace of QE steady until the end of the year, Draghi said there would be an update on what would happen to QE next year when the ECB next meets in late October. 

This probably more than anything set off speculation that tapering would be announced during that meeting and gave the euro bulls an excuse to push the currency higher.

Dollar was easy target for the strong euro. In an indication of the distorting impact of Hurricane Harvey on US economic statistics, weekly initial jobless claims climbed to 298 thousand compared to 236 thousand the previous week. 

According to analysts, US economic statistics during the next 2-3 months will be influenced by the storm and with Hurricane Irma also closing in on Florida, the impact of hurricanes could be pronounced during the last four months of the year. The hurricanes are expected to have only a temporary impact on the US economy but they could also make the Fed's task of raising rates again this year tougher. 

The dollar found little support from the previous day's surprise deal between President Trump and Congressional Democrats for a 3-month extension of the Treasury's debt ceiling combined with aid for hurricane victims. The dollar was under pressure against the yen as it dropped to around 108.60, while the pound climbed to briefly trade above the 1.31 level against the greenback. 

This was a fresh 1-month high for pound/dollar. The loonie, which made significant gains after yesterday's Bank of Canada rate hike but then returned a portion of those gains, managed to slightly take out those lows of USD/CAD today as it traded at 1.2137 a 27 month low.

In commodities, gold rose to as high as $1347 an ounce a 1 year high as the precious metal took advantage of the dollar's weakness and the uncertainty over North Korea's possible new missile test over the weekend. Oil was a little lower at $48.86 a barrel.

China Agreed to Loan Guinea $20 Billion in Exchanged of Aluminium Ore

China agreed to loan Guinea $20 billion over almost 20 years in exchange for concessions on bauxite, an ore of aluminium which the West African country has in abundance, the mines minister said.

The projects guaranteed by the loan included China Power Investment Corp's (CPI) planned alumina refinery and Aluminium Corp of China's (Chalco) bauxite mine and another bauxite project by China Henan International Cooperation Group, all of them in the northwestern town of Boffa.

According to the Mines Minister Abdoulaye Magassouba, that those are the three projects targeted as priorities for the first phase. The revenues of the projects will serve as reimbursement for the loans.

The minister said the money would be spent on badly needed infrastructure Guinea is one of the world's least developed countries a roads for minerals formula that China often uses to gain access to Africa's resources.

Projects earmarked included roads in the capital Guinea and highways upcountry, a project for extending the port of Conakry, an electric transmission line and the building of a university, Magassouba said.

Chalco said last month it plans to invest $500 million in the project in Boffa, about 200 kilometres from the capital Conakry, which was abandoned by BHP Billiton in 2013. The $6 billion CPI alumina project has been on the cards since at least 2012.

Guinea, Africa's leading bauxite producer, holds some of the world's richest bauxite and iron ore deposits, including the Simandou iron ore deposit, in its remote east, which is mired in legal disputes but has nevertheless attracted intense interest from China. 

Asian Stocks Weighs Higher after Wall Street Equities Surged  

Asian stocks weighs higher after Wall Street equities rose as investors weighed a U.S. deal that ensures the funding of its government through mid-December against persistent geopolitical tensions. The yen stayed lower after an overnight drop.

Most industry groups advanced, lifting the MSCI Asia Pacific Index by 0.4 percent. China trade figures are anticipated to show another month of solid export growth, while FX reserves probably continued to rise on stricter capital controls, robust growth and a stronger yuan.

Malaysia’s central bank will probably hold its benchmark rate at 3 percent at meeting. Australian retail sales were unchanged in July from June, while the nation’s trade surplus in July came in less than economists expected.

In stocks, the Topix index rose 0.6 percent as of 11:03 a.m. Tokyo time, while the Kospi index in South Korea was up 1 percent and Australia’s S&P/ASX 200 Index added 0.3 percent. Hong Kong’s Hang Seng Index gained 0.4 percent. 

Chinese indexes fluctuated. S&P 500 Index futures slipped less than 0.1 percent after the underlying gauge rose 0.3 percent.

On the other hand, Japanese yen was steady at 109.13 per dollar after falling 0.4 percent Wednesday, when it had earlier traded near its highs for the year.

The Aussie dollar was back below 80 U.S. cents after the retail sales and trade data.  Australia’s 10-year yield rose four basis points to 2.64 percent

Platinum Price Plummet 10% Compared Last Year Amid Oversupply of the Commodity

The price of platinum took a breather from its recent rally but managed to stay above the $1,000 an ounce level and in positive territory for the year. Platinum, down 10% compared to this time last year, is under performing the precious metals complex and specifically palladium which is sporting 2017 gains of more than 37% and looks set to top its sister metal for the first time since 2001.

A new report by the World Platinum Investment Council (WPIC) shows the platinum market moved back into surplus during the second quarter as a rise in refined supply and a drop in automotive and industrial demand erased the previous quarter's 305,000-ounce deficit.

WPIC is still predicting a small platinum market deficit for the whole of 2017, but the industry body expects the market to be broadly in balance compared to earlier predictions of a 120,000-ounce deficit this year.

Following a 2016 deficit of 270,000 ounces, 2017 would be the sixth consecutive year that global platinum consumption has outstripped supply primarily as the result of declining mining output and low prices discouraging recycling.

Overall supply is expected to contract further in 2017, due to closures of uneconomic mining at current market prices, with total platinum supply expected to decrease by 2% year-on-year to 7,795 koz. Secondary supply is forecast to slip by 3% when compared to 2016, with a reduction in jewellery recycling outweighing increased autocatalyst recycling.

On the demand side of the equation, conditions remain lacklustre. Nevertheless, it is encouraging to observe the continued resilience of platinum demand from the automotive sector, which is counter to many negative commentaries on the sector. The full-year forecast for the segment is 3,360 koz, down just 2% on 2016 (3,435 koz) and very close to overall automotive demand in 2015 and 2014, despite a further reduction in diesel market share in Western Europe.

A bright spot for the platinum market is continuing strength in investment demand. Global investment demand came in at 90,000 ounces during Q2 with bars and coins and exchange-traded funds seeing gains, while exchange stocks remain unchanged. 

This marks the sixth consecutive quarter of positive investment demand according to WPIC and indicates that overall investment growth in 2017 is likely to be greater than expected.

Shares in Asia Declined as North Korea Tensions Continue to Raves Up

Shares in Asia declined today as investors remained jittery about North Korea. Japan's Nikkei 225 declined 0.3 percent as the dollar remained soft. Across the Korean Strait, the Kospi slipped 0.28 percent.

In Australia, the S&P/ASX 200 fell 0.24 percent, with the 1.07 percent fall in the financials sub-index weighing on the broader market. Gold mining and energy stocks made moderate gains. Greater China markets were also pressured. The Hang Seng Index was down 0.88 percent. On the mainland, the Shanghai Composite shed 0.44 percent and the Shenzhen Composite slipped 0.223 percent.

In economic news, Australia second-quarter GDP rose 1.8 percent compared to the previous year. The Australian dollar fell to trade at $0.7998 from levels around $0.8017 after the release of GDP data. The Aussie dollar fetched $0.7993 at 9:53 a.m. HK/SIN.

Stocks in the U.S. fell as markets re-opened for trade after the Labor Day holiday, with the Dow Jones industrial average tumbling 1.07 percent, or 234.25 points, to close at 21,753.31.

Yields of the U.S. Treasurys were also lower. The yield of the 10-year Treasury note stood at 2.06 percent at the end of the U.S. trading day, around its lowest levels since Nov. 10. Bond yields move inversely to their prices.

The dollar fetched 108.75 yen at 9:54 a.m. HK/SIN after earlier falling as low as 108.49, close to its lowest levels since mid-April. The dollar index, which tracks the dollar against a basket of currencies, stood at 92.338, compared to the 92.2 handle seen on Tuesday.

Although risk aversion weighed on the dollar/yen, "an unabashedly dovish Brainard was unquestionably the reason" for the deeper move into the 108 level, Stephen Innes, APAC head of trading at OANDA, said in a note.

In corporate news, the sale of Toshiba's memory chip business returned to the spotlight after Western Digital offered to leave a consortium in talks to buy the unit from Toshiba. Instead, Western Digital would strengthen its position in its existing joint venture with Toshiba. The company shares were up 3.21 percent despite most other Japanese tech stocks sliding in early trade.

Other market movers in the session included stocks affected in the annual review of the Nikkei Stock Average. Japan Post Holdings and Recruit Holdings rose 2.5 percent and 7.35 percent respectively after being added to the index, while Hokuetsu Kishu Paper and Meidenshatumbled 7.65 percent and 7.09 percent after being removed.

Gold Price Jumps Higher as Hedge Fund Bulls Soar 

Gold price jumps higher hitting levels last seen a year ago as safe haven buyers seek refuge amid escalating tensions on the Korean peninsula and weakness on equity markets see investors rotate back into gold.

Gold for delivery in December, contract on the Comex market in New York gained nearly $20 an ounce hitting a high of $1,349.70 in afternoon trade before settling at $1,344.50. Year to date gold is up 17%.

 Volumes were some of the highest recorded for the Comex with futures contracts equivalent to more than 56m ounces or some 1,750 tonnes exchanging hands. That's more than 85% above average daily volumes during August which was already a record trading month. 

The all time high for trading volumes on the exchange was set on the day after Donald Trump was elected president when nearly 90m ounces swopped owners.

The North Korean hydrogen bomb test over the weekend that resulted in a break between the great powers involved in the standoff sparked the latest rally in the metal.

President Trump's warnings that the US will stop trading with any country that does business with the rogue nation drew scorn from Beijing. Yesterday US Ambassador to the United Nations Nikki Haley said Kim Jong Un  was "begging for war" which prompted Moscow on Tuesday to warn of a "global catastrophe" if  "military hysteria" is not replaced with diplomacy.

Managed money investors such as hedge funds which abandoned the gold market for equities and other yield-producing investments in what became known as the Trump trade even before the latest geopolitical escalation, have been returning to the precious metal market in droves.

Hedge funds added to their exposure to the yellow metal for the sixth straight week according to trader positioning data supplied by the government. Net longs bets that gold will be more expensive in the future – rose 18% to the equivalent of 23.2m ounces, the highest since September.

A trading note from Saxo Bank points out that the ratio between longs and short positions has jumped from 1 to almost 19 in the past few weeks. That's the highest ratio since December 2012.

DAX Slumps 0.17% as Sentix Investor Confidence climbed to 28.2 HIgher than Expected

The DAX index has started the week with small losses. In the Monday session, the DAX is currently trading at 12,123.50, down 0.17% on the day. On the release front, there are no major events on the schedule. 

Eurozone Sentix Investor Confidence climbed to 28.2, above the forecast of 27.4 points. Eurozone PPI continues to improve, coming in at 0.0%, short of the estimate of 0.1%.

The eurozone economy continues accelerate, as economic indicators point upwards in the second half of 2017. The Sentix Investor Confidence rose in September, as investors and analysts like what they see from the euro-area economy. 

Germany, the largest economy in the bloc, continues to look very strong, but other countries such as France and Italy have also posted better numbers in 2017. In August, the German and eurozone manufacturing sectors continued to show strong expansion, buoyed by domestic demand as well as a stronger global economy which has increased demand for German and European exports. 

A stronger economy has raised questions as to what monetary moves the ECB has planned will it finally taper its ultra-accommodative monetary policy? The bank's asset purchases program is scheduled to end in December, and analysts expect the ECB to withdraw stimulus in early 2018. 

Still, the ECB has not provided much guidance as to its plans. ECB President Mario Draghi was mum on monetary policy at last week's meeting of central bankers at Jackson Hole, following the lead of Federal Reserve Chair Janet Yellen. 

However, the ECB head will not get another free pass this week, as the ECB holds its next policy meeting on Thursday. Any discussion about tapering the ECB's asset purchase program could have a strong effect on the euro's movement.

Global markets are keeping a close eye on key numbers in the US, as the guessing game continues with regard to a rate hike by the Federal Reserve. US employment numbers were unexpectedly soft on Friday, but the dollar shrugged off the weak numbers and managed to post gains against the euro. 

Nonfarm employment change slowed to 156 thousand, well below the estimate of 180 thousand. This marked a 3-month low. However, with the US labor market still close to capacity (the unemployment rate is just 4.4%), the markets can be forgiving over a softer nonfarm payroll report. 

Wage growth, or the lack of it, is a more pressing concern. Average Hourly Earnings posted a small gain of 0.1%, missing the estimate of 0.2%. This was down from 0.3% in the previous report, and matched the weakest gain seen in 2017. 

Bitcoin Price Drops After a Ban on Raising Funds Using ICOs

Bitcoin price fell sharply after Chinese regulators announced a ban on organizations from raising funds using initial coin offerings (ICOs).

ICOs allow start-ups to raise investment by selling new cryptocurrencies, which are similar to bitcoin, in return for cash. However, the People's Bank of China says this practice, which has become popular around the world as well as in China, constitutes illegal fundraising.

Despite bitcoin's price falling, some expect this move to be shortlived. While the ban on ICOs does not directly affect bitcoin, the news created negative market sentiment which is weighing on the prices of several virtual currencies.

Bitcoin's price fell from $4,584 shortly before the announcement to around $4,350 per bitcoin. It was trading around the $4,429 level. 

The move by China is not the first time the country's regulators have attempted to crack down on the cryptocurrency space. In January and February, the central bank warned several digital currency exchanges they would be shut down if they violated anti-money laundering rules.

Furthermore, while bitcoin dropped sharply on the news, its price has been trending down since hitting the $5,000 milestone at the weekend. 

Japanese Yen Climbed Up While Stocks Plummet 

The dollar was marked down as deep as 109.22 yen at the opening, off a whole yen from late on Friday, but there was no follow-through selling and it was last at 109.84. 

Japan is the world’s largest creditor nation and traders tend to assume Japanese investors would repatriate funds at times of crisis, thus pushing up the yen. Many wonder, however, if Japanese assets would really remain in favor if an actual war broke out in Asia.

Japan's Nikkei did not take the news well, losing 0.9 percent. MSCI's broadest index of Asia-Pacific shares outside Japan. South Korea's main index .KS11 down 0.6 percent.

Futures on 10-year U.S. Treasuries climbed 5 ticks, while yields on Japanese 10-year government debt rallied to their lowest since last November. E-Mini futures for the S&P 500 dipped 0.3 percent, though U.S. markets will be closed on Monday for the Labor Day holiday.

The dollar slipped to 0.9610 Swiss francs from 0.9646, and was off 0.15 percent against a basket of currencies at 92.674. Gold hit a 10-month high and was last up 0.6 percent at $1,332.20. 

The euro was a shade firmer at $1.1880 with investors wary ahead of a European Central Bank meeting on Thursday. There have been reports some at the ECB are unhappy with the euro’s strength and are in no rush to signal the start of a tapering in its massive balance sheet.

In the oil market, prices were mixed as shutdowns of U.S. production following Hurricane Harvey were balanced by an expected downturn in crude demand as the storm knocked out refineries along the Gulf of Mexico.

Brent crude eased 29 cents to $52.46, while U.S. crude gained 14 cents to $47.43 a barrel.

Nuclear Test in North Korea Signifies Trouble for Stocks in September

September is a much dreaded month or much maligned, depending on what you believe, for investing in the stock market.

Those who indulge in crystal ball gazing based on historical data will point out that this month is the only one out of the 12 in a year in which the Dow Jones Industrial Average has been lower on average over the past 20, 50, and 100 years.

What is clear though is that this September has got off to a wobbly start, thanks to the bellicose of North Korea. The country conducted sixth nuclear test that generated tremors five to six times as powerful as its previous nuclear test. This came just hours after Pyongyang claimed it had developed a hydrogen bomb that could be loaded into a long-range missile.

With the Kim Jong Un regime escalating tensions with the United States, nervous investors are apt to sell risky investments and seek safe havens in US Treasuries or the Japanese yen. This is likely to trigger a global selloff in equities and bonds when market resumes today.

Last week, US equity markets rebounded fairly quickly after Mr Trump did not pronounce any radical action against North Korea following its launch of a missile that flew over Japan beyond saying that all options are on the table.

On the economic front, the investment temperature is rather more benign, judging by last Friday's labour and manufacturing data in the US. While US non-farm payrolls have come in well below expectations - with 156,000 jobs added last in August after two straight months of strong gains - the pace of the increase is enough to prod the Federal Reserves to start trimming its bloated balance sheet.

Moreover, the key US manufacturing sector accelerated in August at its fastest pace in six years, driven by gains in output and employment. A rollback of the Fed balance sheet will drain the financial system of excessive liquidity that has kept interest rates artificially low since the 2008 global financial crisis.Higher interest rates are thought to be good for banks.

Asian Equities Edged Higher

Asian equities edged higher today. MSCI’s broadest index of Asia Pacific shares outside Japan rose 0.2 percent. Australian shares added 0.35 percent and South Korea's KOSPI advanced 0.25 percent. Japan's Nikkei climbed 0.4 percent.

The dollar's recent advance slowed as rate hike expectations were dented. The greenback was up 0.15 percent at 110.130 yen having gone as high as 110.675 overnight, its strongest in two weeks. The euro was steady at $1.1909 after plumbing a one-week low of $1.1823 overnight.

In commodities, crude oil prices stood tall after rallying overnight as traders scrambled to reroute millions of barrels of fuel with almost a quarter of U.S. refining capacity remaining offline. 

Hurricane Harvey, which brought record flooding to the U.S. oil heartland of Texas, has shut down at least 4.4 million barrels per day of refining capacity, according to company reports.

U.S. crude was slightly lower at $47.01 per barrel after surging 2.8 percent overnight. Gold hovered near a 9-1/2-month high, supported as the dollar came off its recent highs and by lingering concerns over tensions in the Korean Peninsula. 

Spot gold was steady at $1,321.10 an ounce after gaining 1 percent overnight. The precious metal was on track to gain 2.4 percent this week, during which it touched $1,325.93 an ounce on Tuesday, its highest since early November.

Economists expect U.S. nonfarm payrolls increased by 180,000 jobs in August after surging 209,000 in July and average hourly earnings to have increased 0.2 percent after rising 0.3 percent in July.

The dollar index against a basket of six major currencies was a shade lower at 92.629.The index slipped about 0.2 percent on Thursday and was poised to end 0.1 percent lower on the week in which it hit a 2-1/2-year low of 91.621 on geopolitical tensions before bouncing back.

Global Markets Surged Overnight

Global Markets climbed overnight, the last day of August, with all eyes on today's US jobs numbers.

TD Securities on the pending US jobs report: "We expect August nonfarm payrolls to moderate to a 175k pace after registering a robust 209k gain in July, which left the six-month average little changed at 179,000.

The S&P 500 Index erased a monthly loss with its fifth straight advance. The S&P 500 added 0.6 per cent to 2471.41 at 4pm in New York. Its five-day winning streak is the longest since May.

"There's no doubt that the market is still in an uptrend," said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee. "We've been throwing all sorts of bricks into the wall of worry and it's still reaching for the sky."

The Dow Jones Industrial Average rose 0.3 per cent to cap a fifth straight monthly advance. The Nasdaq 100 Index ended the month at an all-time high.

European shares rose for a second day on Thursday, with the pan-European STOXX 600 up 0.8 per cent, ​but posted a third straight month of decline. A profit warning from Carrefour sank the retail sector.

Hong Kong's Hang Seng index fell 0.4 per cent, to 27,970.30, while the China Enterprises Index lost 0.7 per cent, to 11,295.44 points.

Japan's Nikkei share average rose to two-week highs, after bright US economic data pushed up the greenback against the yen, which in turn lifted cyclical stocks such as auto makers and financial companies.

Rio Tinto Opened its 16th Iron Ore Mine in Western Australia

Rio Tinto formally opened its 16th iron ore mine in the Pilbara region of Western Australia. The Silvergrass mine is due to be commissioned during the final quarter and the $338 million brownfield development is set to produce 10m tonnes of low-sulphurous ore a year.

The company said that Silvergrass was a great example of its value over volume approach, as the mine would provide low cost, high grade material to maintain the quality of the miner's brandname Pilbara Blend.

Silvergrass is located adjacent to Rio's Nammuldi mine and ore would be moved to the Namuldi plant by a 9-km conveyer system currently under construction. The initial phase, with a five million tonne per annum capacity, began production in the fourth quarter of 2015. 

Final capacity could be in excess of 20m tonnes per year, but most of Silvergrass output would replace depleting resources elsewhere.

Rio is also moving ahead with its $2.2 billion Koodaideri iron ore project in Western Australia, 110km west-north-west of Newman. The project would begin construction in 2019 and enter production two years later.

Rio Tinto said it shipped its five billionth tonne of iron ore last year after 50 years of operations in the Pilbara and has invested some $20 billion in Western Australia over the past decade.

Last month, the Melbourne-based giant cut back guidance for iron ore output in 2017 by up to 10m tonnes to around 330m tonnes. Iron ore accounts for just less than half Rio's earnings.

U.S. Stocks Surged as Technology Climbed Higher

The S&P 500 surged 0.46 percent to close at 2,457.59 with information technology leading eight sectors higher. The S&P also posted a four day winning streak.

Nasdaq composite climbed 1.05 percent to 6,368.31, leading other major U.S. indexes, and notched a three-day winning streak. Lifting the index higher were shares of Netflix, which advanced more than 3 percent after analysts at Bernstein said that Disney pulling its content from the platform wouldn't hinder Netflix's stock performance.

Shares of Apple also contributed to the Nasdaq's gains, rising 0.2 percent to hit a record high earlier in the session. Other major stocks in the sector also rose, including Facebook and Google-parent Alphabet. Tech is by far the best-performing sector this year, advancing more than 20 percent.

The Dow Jones industrial average, meanwhile, rose 27.06 points to close at 21,892.43, with Goldman Sachs contributing the most to the gains.

The ADP report is often used by traders as a preview to the government's monthly jobs report, which is set for release on Friday. Meanwhile, the second estimate for gross domestic product data in the second quarter showed the U.S. economy grew by 3.0 percent, more than the expected increase of 2.7 percent..

Market expectations for a rate hike in December were at 41 percent on Wednesday, up from 34 percent on Tuesday, according to the CME Group's FedWatch tool.

The two-year note yield, which is the most sensitive to changes in Fed monetary policy, climbed higher to about 1.33 percent. As of Wednesday afternoon, just over 13 billion shares had been traded for the week. At that rate, the weekly volume is on track for its lowest level since the week of last Christmas.

Equities closed higher after rebounding from the concern of further escalation in tension between the U.S. and North Korea. The Dow opened more than 130 points lower before closing 57 points higher.

Billabong Plummet to a $77.1 Million Loss after Slashing Value of Brands

Billabong has plunged to a $77.1 million loss after slashing the value of brands. The non-cash impairment charges and other one-off costs disguised an otherwise slightly improved operating result, with underlying earnings before interest tax depreciation and amortisation rising 0.3 per cent to $51.1 million.

Chief executive Neil Fiske said EBITDA rose 50 per cent in the June-half, the strongest performance since Billabong's $385 million recapitalisation in 2013, underpinned by a strong performance in the Americas, which offset weak retail trading in the Asia Pacific region.

Nevertheless, the underlying EBITDA result fell short of market consensus forecasts around $56 million. It also fell slightly short of Billabong's guidance of $52 million to $57 million, which was revised downwards in February to adjust for the $60 million sale of Tigerlily to private equity group Crescent Capital. Billabong used the proceeds from the Tigerlily sale to reduce debt.

The bottom line loss also included impairment charges of $11.7 million after Billabong terminated a contract with omni-channel solutions provider Netsuite after technical problems delayed the global rollout of a consolidated e-commerce platform.

Billabong is pressing ahead with its omnichannel strategy and expects to launch the first of its e-commerce sites, for Surf Dive N Ski e-commerce sitebefore Christmas. Group sales fell 8.8 per cent to $974.7 million, or by 4.7 per cent excluding Tigerlily and Sector 9, which was sold in July last year.

However, comparable retail revenue from bricks and mortar and online stores rose 0.1 per cent for the year after falling 1.2 per cent in the first half. Ecommerce sales rose 22 per cent. Inventories fell 7.5 per cent and gross margins improved 90 basis points.

Largest Private Hospital Operator in Australia Posted a 12.7% Increased Profit  

Ramsay Health Care posted a net profit growth of 12.7 per cent to $542.7 million. Driving the result was growth in admissions and earnings in its Australian business, while its international divisions suffered amid tariff reductions.

The $14.5 billion company said that group revenue was virtually flat at $8.7 billion, or up 4.1 per cent in constant currency terms. Group EBIT was up 5.2 per cent to $943.4 million. Core EPS was up 13 per cent to $2.314.

In February Ramsay upgraded guidance tipping 12 per cent to 14 per cent core net profit and core earnings per share growth for 2016-17, up from 10 per cent to 12 per cent previously stated.

New chief executive Craig McNally - the former chief operating officer and a 29-year company veteran - said while the Australia remains the powerhouse of Ramsay's operations posting strong earnings growth, its European businesses delivered on expectations.

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The company declared a fully franked dividend of 81.5 cents, payable September 28 up from 72 cents a year ago. Total dividends for the 2017 year were $1.335. They is tipping core EPS growth this new 2018 fiscal yearof 8 per cent to 10 per cent, supported by strong growth in its Australian hospitals business.

Revenue at its French unit was nearly flat at €2.2 billion, and EBITDAR also was virtually flat per cent to €448.3 million, after two years of tariff reductions. Ramsay's Générale de Santé is now France's largest private hospital operator with 124 facilities after buying another nine hospitals in Lille in 2016.

Global Market Sheds Lower 

US crude shedding more than 3 per cent and Brent, the global benchmark, falling more than 1 per cent as the refinery sector in Texas was battered by Hurricane Harvey.

It remained unclear at this point how much damage has been done as the focus for authorities was on rescuing residents amid historic flooding. Numerous refiners shut operations, likely for weeks, in the nation's refining and petrochemical hub.

The S&P 500 and Dow ended little changed on Monday as energy and bank shares traded lower, while tech and healthcare gave a light boost to the Nasdaq.

In the wake of Hurricane Harvey insurers were among the biggest decliners Monday in the S&P 500 Index, with Travelers Cos dropping 2.6 per cent and Progressive Corp down 2.3 per cent.

Market analysts said despite the human drama and infrastructure devastation, the market may be able to take solace in the likelihood that a massive rebuilding effort would mostly offset the negative economic consequences of the flooding.

European shares fell on Monday after the euro strengthened. European Central Bank chief Mario Draghi held back from expressing concern about a strong currency in a closely watched speech on the weekend.

The STOXX index for euro zone stocks fell as much as 0.7 per cent to a two-week low before paring its losses to end 0.4 per cent lower on the day. London was closed for a holiday, reducing activity.

In Asia, several missiles were fired by North Korea, NHK cites Japan's government as saying. Missile likely landed off eastern coast of Hokkaido, NHK says.

Japan Prime Minister Shinzo Abe, speaking to reporters in Tokyo after the launch, said the North Korea missile appeared to have passed over Japan's airspace and that the government was urgently collecting intelligence on the incident and doing everything to ensure the safety of its citizens.