Australian market may have some catching up to do!
January 27th, 2009 by Cale McCulloch
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 8116.03 | 38.47 | 0.5% |
| NASDAQ | 1489.46 | 12.17 | 0.8% |
| S P 500 | 836.57 | 4.62 | 0.6% |
| FTSE 100 | 4209.01 | 156.54 | 3.9% |
| Nikkei 225 | 7682.14 | -63.11 | -0.8% |
| SPI Futures | 3387 | 58 | 1.7% |
| All Ords | 3,300.00 | -131.6 | -3.8% |
| Oil | 46.5 | 1.38 | 3.1% |
| Gold | 908.8 | 13 | 1.5% |
| Silver | 12.11 | 0.17 | 1.4% |
| Aluminium | 1290 | -21 | -1.6% |
| Copper | 3050.5 | -104.5 | -3.3% |
| Lead | 1075 | -30.5 | -2.8% |
| Nickel | 11045 | -60 | -0.5% |
| Tin | 11055 | -355 | -3.1% |
| Zinc | 1108 | -6 | -0.5% |
The Australian Market was sold off heavily on Friday, on fears about what could happen with 2 nights of trading in the US over the Australia Day weekend. The US market gained slightly in both sessions. As a result the local market looks set to open roughly one percent higher this morning, but may see some continued gains throughout the day as investors take comfort in the fact that global markets continue to absorb the bleak global economic data and earnings reports.
Overnight, a number of companies announced cut backs including Caterpilar Inc (totalling in excess of 74,000 jobs), while earnings by AMEX and Texas Instruments presented a mixed bag of results. AMEX came in slightly below earnings estimates while Texas Instruments managed to exceed those of analysts. However, a key theme in earnings is that although earnings per share may not be affected all that greatly for many, it is the revenue that is falling. This goes to show the extent to which management is successfully navigating these tough economic conditions by cutting costs and tighter management of resources.
In Commodities, Gold continued its climb, finishing above USD 900 per ounce at USD 908.80, while spot oil also climbed over the weekend to $46.5 per barrel, up $1.38 on the local close. Base metals soared, led by copper which climbed just under 10% and Lead which rose roughly 7% so look for some strength in the big miners on the local market.
Among local companies, Wesfarmers has successfully raised $2.9 billion in an institutional book build to go towards paying down debt. Some shares were placed to institutions at the initial $13.50 per share, while the strong support left the remainder of the placement to be done at $15.00 per share. This could make for some interesting trading when it opens this morning.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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