All eyes on RBA
October 6th, 2009 by Bryden Elssmann
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 9599.75 | 112.08 | 1.2% |
| NASDAQ | 2068.15 | 20.04 | 1.0% |
| S P 500 | 1040.46 | 15.25 | 1.5% |
| FTSE 100 | 5024.33 | 35.63 | 0.7% |
| Nikkei 225 | 9674.49 | -57.38 | -0.6% |
| ASX 200 | 4,579 | -26.7 | -0.6% |
| COMEX Gold - Dec 09 | 1017.8 | 13.5 | 1.3% |
| COMEX Silver - Sep 09 | 16.535 | 0.305 | 1.9% |
| COMEX Copper - Sep 09 | 272.7 | 4.55 | 1.7% |
| WTI Spot | 70.41 | 0.75 | 1.1% |
| AUD-USD | 0.8778 | 0.0097 | 1.1% |
| Aluminium | 1760.5 | -25.5 | -1.4% |
| Copper | 5856 | -16 | -0.3% |
| Lead | 2115 | 30 | 1.4% |
| Nickel | 17150 | -25 | -0.1% |
| Tin | 14600 | -100 | -0.7% |
| Zinc | 1855 | 3 | 0.2% |
Wall Street
An analyst upgrade of the banking sector and earnings driven speculation drove a rallying stock market Monday, with Wells Fargo, Alcoa and Caterpillar leading the surge. The Dow Jones gained 112 points or 1.185, to 9599.75, breaking a four-day losing streak. Much of the activity revolved around positioning ahead of the third-quarter earnings period due to start this week. Third-quarter earnings season is expected to be robust however many analysts are still wary coming out of a recession.
Australia
The All Ordinaries (XAO) is set for a lift this morning as sentiment over an economic recovery gets a boost from better U.S. data, but all eyes will be on Australia's central bank amid talk of an interest rate rise.
The Reserve Bank of Australia (RBA) will announce its policy decision at 2:30pm AEDST as speculation mounts it may raise interest rates by 25 basis points from a record low of 3 percent.
Some analysts have said a rate rise could hurt stocks and slow a recovery, though others have said it could be seen as a vote of confidence in the strength of the economy.
Gold
A weaker US dollar triggered chart-based buying, with December Gold futures up $US13.50 to settle at $US10117.90 an ounce. Gold and silver prices having responded to a weaker dollar as investors turn to gold as a hedge against US dollar weakness. Chart-based momentum triggered the rally in gold when the price breached last week’s, with no technical resistance until around US$1021.
Newcrest Mining (NCM) and Lihir Gold (LGL) are expected to open stronger this morning. Today may be a suitable day for clients to sell calls over any gold stocks.
The SPI is up 41 points to 4624.
Quote of the day
“Investors have very short memories.”
Roman Abramovich
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
Disclaimer
The material in “Market Fox” (newsletter) is of a general nature only and neither purports nor is intended to be regarded as advice. No consideration has been given or will be given to your investment objectives, financial situation or needs. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk. Not all risks can be or will be explained in the newsletter. Previous results are no indication of future results. Actual results achieved in the market can vary considerably. The Directors and Representatives of Freeman Fox Ltd and their associates may hold securities in the companies presented.
The research made available in this newsletter is for your private use only and it is protected by applicable copyright laws and other applicable intellectual property right laws. You may not reproduce, distribute, disseminate, broadcast, sell, publish, circulate or give for free, any of the materials made available to you in this newsletter without first seeking the prior written consent of Freeman Fox Ltd.
Freeman Fox Ltd is not required to update any of the content made available in this newsletter, including but not limited to any research commentary, forecasts, recommendations or other analysis in this newsletter. Therefore, for the avoidance of any doubt, material made available in this newsletter may not be accurate after the date of publication or the date on which it is displayed in the newsletter.
To the extent permitted by law, Freeman Fox Ltd and their respective directors, officers, employees, contractors and agents disclaim all responsibility to you for any loss, liability, claim, expense (including but not limited to legal costs and resultant defence or settlement costs) or damage whatsoever, whether direct, consequential, special, incidental, punitive or indirect (including but not limited to loss of profits, trading losses and damages that result from delay, loss or inconvenience) arising out of or in connection with the content of the newsletter and/or any omissions from the content whether in contract, tort (including negligence), statute or otherwise and even if Freeman Fox Ltd has been advised of the possibility of such damage or loss.
If you require assistance in relation to your personal investment situation, contact an authorised representative of Freeman Fox Ltd.