Deflated...
May 20th, 2010 by Bryden Elssmann
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,444.37 | -66.58 | -0.6% |
| NASDAQ | 2,298.37 | -18.89 | -0.8% |
| S P 500 | 1,115.05 | -5.75 | -0.5% |
| FTSE 100 | 5,158.08 | -149.26 | -2.8% |
| Nikkei 225 | 10,186.84 | -55.8 | -0.5% |
| ASX 200 | 4,387.10 | -83.6 | -1.9% |
| COMEX Gold - Dec 09 | 1,194.00 | -20.6 | -1.7% |
| COMEX Silver - Sep 09 | 18.3 | -0.579 | -3.1% |
| COMEX Copper - Sep 09 | 295.45 | -7.65 | -2.5% |
| WTI Spot | 69.87 | 0.46 | 0.7% |
| AUD-USD | 0.8477 | -0.0169 | -1.9% |
| Aluminium | 1,969.00 | -36.5 | -1.8% |
| Copper | 6,465.50 | -140 | -2.1% |
| Lead | 1,721.00 | -74.5 | -4.1% |
| Nickel | 21,055.00 | -420 | -2.0% |
| Tin | 17,105.00 | 0 | 0.0% |
| Zinc | 1,822.50 | -70.5 | -3.7% |
US stocks fell overnight led by industrial companies Caterpillar, Boeing and 3M as investors worried that the weak Euro could hurt the profits of companies that do business in the Euro zone. The declines wiped out the Standard & Poor's 500-stock index's gain for the year.
The Dow Jones Industrial Average fell 66.58 points, or 0.63 per cent, to 10,444.37. The measure is still up 0.16 per cent for the year. Caterpillar was the Dow's worst performer with a drop of $US1.75, or 2.8 per cent, to $US61.44. Boeing fell $US1.51, or 2.2 per cent, to $US66.21, and 3M slipped US95 cents, or 1.1 per cent, to $US82.54.
Germany's ban on the naked short selling of euro-zone bonds, credit default swaps and certain equities will keep market suspicions about Europe aroused for a few days yet.
Deflated…
A US government report showed an unexpected decline in April's consumer-price index, spurring some concern about deflation, or general price declines, given the high level of unemployment. The annualised CPI excluding energy and food, a gauge closely watched by the Federal Reserve, dropped below 1 per cent to the lowest level since 1966.
Another night of wild volatility in currencies, commodities and equities as investors globally position themselves as far away as possible from regulatory risk. The Aussie dollar traded as low as 83.6usc. The Australia dollar may be under pressure until the perceptions of regulatory risk (RSPT) change. The currency is being sold off as foreign investors repatriate capital. Sovereign risk is also one of the reasons the Australian Equities market has fallen further (in percentage terms) than other bourses around the world as Foreign investors sell their stocks and take money out of Australia.
The Australian Market is expected to open flat, with weak offshore leads from the US. The SPI is currently trading up 7 points to 4396 points.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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