Consolidated Gains
August 13th, 2009 by Cale McCulloch
Closing Data
| 9361.61 | 120.16 | % | |
|---|---|---|---|
| NASDAQ | 1998.72 | 28.99 | 1.5% |
| S P 500 | 1005.81 | 11.46 | 1.2% |
| FTSE 100 | 4716.76 | -5.44 | -0.1% |
| Nikkei 225 | 10435 | -150.46 | -1.4% |
| 0.0% | |||
| US Bond 10 Yr | 3.7243 | 0.0418 | 1.1% |
| US Bond 30 Yr | 4.541 | 0.1 | 2.3% |
| 0.0% | |||
| COMEX Gold - Dec 09 | 952.5 | 4.9 | 0.5% |
| COMEX Silver - Sep 09 | 14.585 | 0.24 | 1.7% |
| COMEX Copper - Sep 09 | 282.35 | 8.7 | 3.2% |
| WTI Spot | 70.16 | 0.71 | 1.0% |
| 0.0% | |||
| Aluminium | 1892 | -62 | -3.2% |
| Copper | 6029 | -107 | -1.7% |
| Lead | 1775 | -50 | -2.7% |
| Nickel | 19270 | -905 | -4.5% |
| Tin | 14910 | -65 | -0.4% |
| Zinc | 1785 | -52 | -2.8% |
The Dow Jones Industrial Average jumped 120 points overnight, after a couple of sessions of consolidation. The gains were aided by indications from the federal reserve that the economy has returned to a more stable footing and said it would end its purchases of long-dated treasuries in October. The statement boosted investor confidence that the recession is winding down, and the economy may not only be stabilising, but shifting gears towards growth.
Base metals were broadly higher, as investors appetite for risk saw renewed purchasing on the London Metal Exchange, with the metals rising between 0.8 and 3%. Gold recovered some of the previous sessions losses, putting on just under USD 5 a Troy ounce. While Oil ignored some data showing increases in the stockpiles of Crude and put on 71c a barrel to close back above the USD 70 mark.
The Local market bucked the trend yesterday, showing resilience to the weakness on international markets on the back of some better than expected earnings from the Commonwealth Bank of Australia. CBA posted a better than expected 7% decline in Cash profit for the year to AUD 4.4 billion, the stock led financials higher, ending the day up $1.39 at $45.32. BHP also managed to climb ahead of the company’s results which released on the close yesterday. BHP posted a 61.8% fall in full year profit to USD 5.88 Billion from USD 15.39 billion last year, although it did have a record cash flow of US 18.9 billion for the 12 months, and is conservatively positioned with just 12% gearing. BHP Chief Executive Marius Kloppers expected a return in demand strength in 2010.
Look for strength across the board on the local market, with eyes on the big miners following the BHP result yesterday, gains in BHP may be limited according to the ADR’s, with the stock trading at 37.93 in the states compared with a 37.99 close yesterday. The insurance sector may follow the US lead, and post strong gains perhaps led by QBE in the run up to a dividend later this month.
The SPI has us opening some 50 points higher, and the market look set to Break out on the Charts, with the next stop potentially up at 4700.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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