Big week ahead with the release of key data
September 13th, 2010 by Cale McCulloch
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,462.77 | 47.53 | 0.5% |
| NASDAQ | 2,242.48 | 6.28 | 0.3% |
| S P 500 | 1,109.55 | 5.37 | 0.5% |
| FTSE 100 | 5,501.64 | 7.48 | 0.1% |
| Nikkei 225 | 9,239.17 | 140.78 | 1.5% |
| ASX 200 | 4,560.30 | -21.9 | -0.5% |
| COMEX Gold - Dec 09 | 1246.5 | -4.4 | -0.4% |
| COMEX Silver - Sep 09 | 19.845 | -0.01 | -0.1% |
| COMEX Copper - Sep 09 | 340.65 | -3.7 | -1.1% |
| WTI Spot | 76.45 | 2.2 | 3.0% |
| AUD-USD | 0.9263 | 0.0035 | 0.4% |
| Aluminium | 2,083.50 | 1 | 0.0% |
| Copper | 7,525.00 | -7 | -0.1% |
| Lead | 2,170.00 | 8 | 0.4% |
| Nickel | 22,825.00 | 245 | 1.1% |
| Tin | 21,800.00 | 50 | 0.2% |
| Zinc | 2,130.00 | 5 | 0.2% |
On Friday night we had the US markets closing higher with some help from the Oil price on the back of a closure of a major pipeline between Canada and the US which saw the Oil price close higher by some 3%. Banks and Tech firms also gained. At the bell the Dow was higher by about 47 points, while the broader S&P500 higher by 6.3 points while the Tech heavy NASDAQ gained by a little less, closing up by just 6.28 points or 0.28%. The Gold price fell about USD 4 an ounce as would be expected with strength in the equity markets, while base metals were broadly lower for the session with the exception of Tin which managed to gain about 0.8% while Copper, Lead, Zinc, Aluminum and Nickel all fell by between 0.3 and 2%.
The modest gains in the US stock markets saw the API futures track higher by about 12 points on Saturday morning, following an interesting week last week. Friday saw a sell off, on concerns that China had brought forward the release of trade data showing an increase in imports, which some speculated would mean they would have to raise interest rates following Saturdays release of CPI and industrial production. No such action eventuated, but the data was better than expected, with China’s Industrial production coming in higher than expected at 13.9% while analysts were looking for 13%. On the CPI front the market got exactly what it was looking for, rising 3.5% from a year earlier which was in line with consensus estimates. With CPI staying on course while industrial production and imports come to life we are unlikely to see any hasty rate rises in the short term that could rock the markets.
This week the market will be looking at housing, retail trade, industrial production and CPI out of the US and Euro zone, while domestically we will be watching out for lending finance figures today. The RBA has the credit card statistics due out also, while on Tuesday we have the NAB business sentiment survey, Wednesday we have Consumer sentiment, Car sales and dwellings, Thursday brings a speech from the RBA assistant governor along with Myer results.
As you can see we are in for a big week, but with the strength in the Chinese numbers over the weekend I think we can look for strength in the Base metals trading in Shanghai this morning, which should filter through Asian markets and lead us to an open substantially higher than the 12 point gain the SPI was pointing to over the weekend… Also evidenced by the strength in the AUD when it opened this morning, trading above 93US cents for several hours before dipping back below while it awaits the start of equity trading. I am looking for a break of 4600 (up more than 40 points from Fridays close) today as the numbers filter through Asian markets, which should bring about the next round of short covering and set the market on course for about 4750 in the near term.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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