Chinese Minerals & Japanese Dollars
June 12th, 2009 by Bryden Elssmann
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 8770.92 | 31.9 | 0.4% |
| NASDAQ | 1862.37 | 9.29 | 0.5% |
| S P 500 | 944.89 | 5.74 | 0.6% |
| FTSE 100 | 4461.87 | 25.12 | 0.6% |
| Nikkei 225 | 9981.33 | -10.16 | -0.1% |
| SPI Futures | 4047 | -7 | -0.2% |
| All Ords | 4,047.00 | 31.1 | 0.8% |
| Oil | 49.67 | 1.18 | 2.4% |
| Gold | 962 | 7.3 | 0.8% |
| Silver | 15.493 | 0.268 | 1.8% |
| Aluminium | 1642 | 4 | 0.2% |
| Copper | 5266 | 86 | 1.7% |
| Lead | 1787 | 42.5 | 2.4% |
| Nickel | 15435 | 40 | 0.3% |
| Tin | 15825 | -25 | -0.2% |
| Zinc | 1634.5 | 27 | 1.7% |
Wall Street
Stocks ended modestly higher, with all three major gauges closing at multi-month highs after the day's economic reports fed hopes that a recovery is brewing. The Dow rose 31.9 points, or 0.37 per cent, to 8770.92, its highest close since January 6. After briefly popping into positive territory for the year to date during the session. The Dow is down 0.06 per cent for 2009 so far. The broad SP 500 rose 5.74 points, or 0.61 per cent, to 944.89, its highest close of 2009. The Nasdaq, which has led the recent stock-market recovery, rose 9.29 points, or 0.5 per cent, to 1862.37 after a strong showing from shares of computer-maker Dell.
Energy shares helped lead the advance after the International Energy Agency raised its demand forecast for the first time in 10 months. Crude oil surged briefly to more than $73 a barrel and lifted shares of resource companies.
Australian Market
Australian stocks are expected to extend their gains this morning, with energy and mining companies set to rise on strong oil and base metal prices and continued speculation over Chinese investment.
OZ Minerals, which resumes trading this morning, will be in focus after its shareholders approved a $1.39 billion deal to sell most of its assets to China's state-owned Minmetals. Investors voted overwhelmingly in favour of the asset sale at the companies AGM yesterday. The deal will see Minmetals gain control of the world’s second biggest zinc mine and supplier of copper, gold and nickel.
Meanwhile Iron ore miners could continue their gains this week on speculation that Chinese firms will be looking for more investments.
The Aussie Dollar
The Australian dollar has climbed above US80cents to US81.198cents from its low of US0.7825 early this week. The market is speculating that the RBA might be considering a rate hike within 12 months, giving the Aussie dollar a tactical advantage over other currencies. Currently, Australia’s cash rate of 3 percent is 290 basis points above Japan’s, 275 basis points over the United States and 200 basis points above the European Union. The higher yield is attracting money from overseas, notably Japan with the AUD/JPY at a 9 month high of 79.59 yen. The Australian dollar is being seen as the denomination of choice by Japanese investors.
"The stock market is filled with individuals who know the price of everything, but the value of nothing."
-- Philip Fisher
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