Corporate Activity Drives Markets
September 29th, 2009 by Neil Gynther
Closing Data
| Current | +/- | % | |
|---|---|---|---|
| Dow Jones | 9789.36 | 124.17 | 1.3% |
| NASDAQ | 2130.74 | 39.82 | 1.9% |
| S P 500 | 1062.98 | 18.6 | 1.8% |
| FTSE 100 | 5165.7 | 83.5 | 1.6% |
| Nikkei 225 | 10009.52 | -256.46 | -2.5% |
| US Bond 10 Yr | 3.2766 | -0.0459 | -1.4% |
| US Bond 30 Yr | 4.035 | -0.052 | -1.3% |
| COMEX Gold - Dec 09 | 994.1 | 2.5 | 0.3% |
| COMEX Silver - Dec 09 | 16.195 | 0.135 | 0.8% |
| COMEX Copper - Dec 09 | 272.7 | -1.35 | -0.5% |
| WTI Spot | 66.24 | 0.19 | 0.3% |
American and European market performances overnight should boost Australia’s market this morning with a 50 to 60 point rally indicated by the SPI. The Dow Jones Industrial Average rose 124.17 points to close at 9789.36. Germany led the European markets higher on the re-election of Chancellor Angela Merkel.
With the winding down of the footy season in Australia we are having a lot of “Mad Mondays”. It appears America is going through the same thing with Mondays bringing a rash of Corporate takeovers and mergers. Most notable yesterday was the Xerox agreement to buy Affiliated Computer for US$6.4B. Talk in the US is that the Corporate activity is being driven by the markets’ belief that companies are cheap and now is the time to buy as the economy begins to improve.
Could we begin to see some of this activity in Australia? Analysts are already beginning to speculate which companies could be open to a takeover. As credible ideas come across our desks we will pass them on to our clients.
The Chinese buyers have been absent from the London Metals Exchange recently, note the substantial drop in the price of copper, and last night was no different. The market was mixed and only improved as the Americans posted positive gains and the Mergers and Acquisitions news hit the wires.
After a couple of days of profit taking our market will be more positive this morning. Today should be a good day to write your October positions.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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