Better-than-expected start to May
May 5th, 2009 by Bryden Elssmann
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 8426.74 | 214.33 | 2.6% |
| NASDAQ | 1763.56 | 44.36 | 2.6% |
| S P 500 | 907.24 | 29.72 | 3.4% |
| FTSE 100 | 4243.22 | -0.49 | -0.0% |
| Nikkei 225 | 8977.37 | 149.11 | 1.7% |
| SPI Futures | 3896 | 32 | 0.8% |
| All Ords | 3,846.00 | 108.1 | 2.9% |
| Oil | 54.45 | 2.27 | 4.4% |
| Gold | 902.2 | 14 | 1.6% |
| Silver | 13.113 | 0.613 | 4.9% |
| Aluminium | 1481.5 | 0 | 0.0% |
| Copper | 4501 | 0 | 0.0% |
| Lead | 1334.5 | 0 | 0.0% |
| Nickel | 11605 | 0 | 0.0% |
| Tin | 12805 | 0 | 0.0% |
| Zinc | 1448.5 | 0 | 0.0% |
US stocks rallied across the board following a better-than-expected pending home sales report combined with a sharp increase in US construction spending. The Dow gained 214 points or 2.6% to close at 8426.74, the highest point since 13 January. While the S&P500 gained 3.4 % to 907.
The US pending home sales index was up by 3.2% for February, surprising economists. Another report showed construction spending rose 0.3% for February versus a forecast 1.6% decline. The report has intensified hopes that the economy is closer to stabilising, especially if you subscribe to the theory that the global economic crisis started with the US housing market and will end there. The results suggest that government stimulus spending is beginning to trickle into the wider economy.
In currency trading the Australian dollar has risen above US74c. There were several catalysts for the sustained optimism in the Aussie dollar. Solid gains in equity markets in the US and elsewhere combined with notions of an impending economic recovery in the US housing market have lessened the appeal of safe-haven assets like the US dollar and US Treasuries. Increasing demand from Chinese manufacturers for raw materials have seen commodity sensitive currencies, like the Australian and Canadian dollar, rise against the US dollar.
Oil has climbed to a new high for 2009 closing above $US54 a barrel. Sustained rallies in global equity markets are a leading indication of stronger demand for oil. In the US, inventory levels are reported to be at their lowest level since 1990.
Asian markets ended higher yesterday along with most of Europe. Expect the Australian market to open stronger this morning continuing yesterdays 3% rally
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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