Caution Ahead of Reserve Bank Meeting
August 31st, 2009 by Cale McCulloch
Closing Data
| 9544.2 | -36.43 | % | |
|---|---|---|---|
| NASDAQ | 2028.77 | 1.04 | 0.1% |
| S P 500 | 1028.93 | -2.05 | -0.2% |
| FTSE 100 | 4908.9 | 39.55 | 0.8% |
| Nikkei 225 | 10534.14 | 60.17 | 0.6% |
| 0.0% | |||
| US Bond 10 Yr | 3.4498 | -0.0168 | -0.5% |
| US Bond 30 Yr | 4.206 | -0.02 | -0.5% |
| 0.0% | |||
| COMEX Gold - Dec 09 | 958.8 | 11.5 | 1.2% |
| COMEX Silver - Sep 09 | 14.784 | 0.564 | 4.0% |
| COMEX Copper - Sep 09 | 292.3 | 7.45 | 2.6% |
| WTI Spot | 72.88 | 0.39 | 0.5% |
| 0.0% | |||
| 0.0% | |||
| Aluminium | 1880.5 | 47.5 | 2.6% |
| Copper | 6490.5 | 229.5 | 3.7% |
| Lead | 2118 | 97.5 | 4.8% |
| Nickel | 19595 | 205 | 1.1% |
| Tin | 14400 | 150 | 1.1% |
| Zinc | 1820 | 2 | 0.1% |
The Base Metals were broadly higher, with Lead being the best performer, closing the session up just under 5%. Copper, Zinc, Aluminium, Nickel and Tin all managed gains between 0.8 and 4%. This strength in the Base metal sector is likely to support the Big miners on the local market this morning. BHP ADR’s closed at the AUD equivalent of $38.09 in New York, compared with $37.85 locally. BHP will be quoted “ex dividend” this morning. Strength in the Base Metals was on the back of some positive revisions in the Euro zone GDP forecasts earlier Friday night.
Gold miners are also likely to be a point of strength this morning, with the precious metal putting on USD 11 per Troy ounce to close USD 959 an Ounce. The price of Oil lagged, giving back most of the early gains to close 25c higher at USD 72.74 per barrel.
Trading is likely to be relatively subdued today, ahead of the RBA rate announcement tomorrow afternoon which will likely result in the rate being unchanged for the time being. The national accounts are due out on Wednesday. We do have a couple of minor data releases today including the Business indicators for the June Quarter from the ABS, which covers business profits, sales and inventories and will be watched to for indications of a recovery domestically. All eyes will be on the National accounts where Australia is expected to post another period of GDP growth, a result better than 1% could provide some scope for further upside in equities, while less than the expected 0.7% may result in a return to caution, and perhaps some profit taking.
The SPI futures have us opening just 2 points higher this morning, but we may see some profit taking amid light volume.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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