Crude sentiment runs out of oil
August 25th, 2009 by Bryden Elssmann
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 9509.28 | 3.32 | 0.0% |
| NASDAQ | 2017.98 | -2.92 | -0.1% |
| S P 500 | 1025.56 | -0.57 | -0.1% |
| FTSE 100 | 4896.23 | 45.34 | 0.9% |
| Nikkei 225 | 10581.05 | 342.85 | 3.3% |
| ASX 200 | 4,426 | 135.5 | 3.2% |
| COMEX Gold - Dec 09 | 943.7 | -11 | -1.2% |
| COMEX Silver - Sep 09 | 14.195 | 0.031 | 0.2% |
| COMEX Copper - Sep 09 | 291.5 | 3.45 | 1.2% |
| WTI Spot | 73.82 | 0.63 | 0.9% |
| AUD-USD | 0.8389 | 0.0027 | 0.3% |
| Aluminium | 1881 | -27 | -1.4% |
| Copper | 6361 | 226 | 3.7% |
| Lead | 1945.5 | 100.5 | 5.4% |
| Nickel | 19695 | 170 | 0.9% |
| Tin | 14825 | 425 | 3.0% |
| Zinc | 1840 | 32 | 1.8% |
Australian stocks are set to open slightly lower this morning, as investors digest more results and skim off profits from the previous day's rally, when the market posted its biggest one-day percentage gain in about six weeks.
Wall Street provided no inspiration, ending flat after a four-day rally that had lifted stocks to 10-month highs. The Dow Jones industrial average gained 3 points to 9,509. The S&P500 Index fell half a point to 1,026 and the NASDAQ dropped 3 points to 2,018.
Companies reporting earnings results today; Aristocrat Leisure, Mirvac, Oil Search, Suncorp-Metway, Foster’s Group and Seek.
Oil was slightly higher overnight, gaining 48 cents, or 0.6% to US$74.37 a barrel. However, Analysts are cautioning that with demand remaining weak and supplies abundant the crude market could be vulnerable to a sharp downward movement. Conversely, this is offset by the argument that growing enthusiasm about the economic recovery is dominating market sentiment potentially driving oil to the US$80 mark. Go figure…. The market will look for direction from the American Petroleum Institute which is scheduled to release its weekly inventory data on Wednesday.
Speaking of Oil…Oil Search (OSH) reported its 2009 First Half Results this morning. OSH announced a profit after tax of US$35.6 million, compared to US$133.3 million in the corresponding period. Attributing a fall in profits to markedly weaker oil prices stemming from the global slowdown, and lower oil sales. However, it wasn’t all bad news with the company declaring the PNG LNG Project on schedule, having a achieved several significant milestones. OSH is expected to open stronger this morning.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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