Dow closed up 5pts as US home sales dropped
June 24th, 2010 by Katy Loi
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,298.44 | 4.92 | 0.0% |
| NASDAQ | 2,254.23 | -7.57 | -0.3% |
| S P 500 | 1,092.04 | -3.27 | -0.3% |
| FTSE 100 | 5,178.52 | -68.46 | -1.3% |
| Nikkei 225 | 9,923.70 | -189.19 | -1.9% |
| ASX 200 | 4,486.10 | -72.2 | -1.6% |
| COMEX Gold - Dec 09 | 1,234.80 | -6 | -0.5% |
| COMEX Silver - Sep 09 | 18.52 | -0.382 | -2.0% |
| COMEX Copper - Sep 09 | 295.45 | -5.6 | -1.9% |
| WTI Spot | 76.5 | -1.35 | -1.7% |
| AUD-USD | 0.8737 | 0.0021 | 0.2% |
| Aluminium | 1,922.00 | 21 | 1.1% |
| Copper | 6,576.00 | 116 | 1.8% |
| Lead | 1,782.00 | 16 | 0.9% |
| Nickel | 19,430.00 | 30 | 0.2% |
| Tin | 17,810.00 | -65 | -0.4% |
| Zinc | 1,775.50 | 48.5 | 2.8% |
The Dow closed up slightly despite reports showing US home sales dropped by a record 33% in the latest month which shows some resilience in the market. The gold price fell as investors looked to move assets to the U.S. dollar and U.S. Treasuries. The market was also pressured by lower crude oil prices. Also moving the market was the Federal Open Market Committee meeting statement following its two-day meeting. The Fed left interest rates unchanged and said it foresees low interest rates continuing for some time to come. It highlighted that while economic growth is occurring, the pace has slowed down. The Fed also said it sees low inflation continuing. No major shift was expected in the Federal Reserve’s monetary policy.
The market seemed unsure as to how to react to the statement as the trading range was fairly tight. Whilst maintaining low interest rates supports equities, it also signals growth is still slow. More important on some traders’ minds is this weekend’s G-20 meeting in Toronto, Canada. Bank and financial market regulations are likely to be the main topic of discussion at the meetings. Data out tonight in the US is jobless claims for June (460k consensus v. previous 472k) and continuing jobless claims (4580k consensus v. previous 4571K).
The SPI futures points to an open of up 10 points. Julia Gillard has made history by winning the Labor party leadership after Kevin Rudd reportedly stood down. Ms Gillard will become Australia's first female Prime Minister after an extraordinary 12 hours which ended with Mr Rudd standing down before a scheduled leadership ballot, which was to be held at 9am. Wayne Swan will be Deputy Prime Minister This could potentially boost the market as offshore investors’ sentiment towards Australia may be more positive. Today is expiry day for June equity options.
Over the last month, our index has added around 5% which is a 35% retracement from the April highs showing we have recovered considerable ground. Whilst we could see the market in a new trading range in the medium term, with volatility still relatively high, locking in premium for July will allow you to take advantage of the continued volatility in the market. Today could see the market add around 50 points before running into some resistance at 4500 and 4558 with support at 4420.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
Disclaimer
The material in “Market Fox” (newsletter) is of a general nature only and neither purports nor is intended to be regarded as advice. No consideration has been given or will be given to your investment objectives, financial situation or needs. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk. Not all risks can be or will be explained in the newsletter. Previous results are no indication of future results. Actual results achieved in the market can vary considerably. The Directors and Representatives of Freeman Fox Ltd and their associates may hold securities in the companies presented.
The research made available in this newsletter is for your private use only and it is protected by applicable copyright laws and other applicable intellectual property right laws. You may not reproduce, distribute, disseminate, broadcast, sell, publish, circulate or give for free, any of the materials made available to you in this newsletter without first seeking the prior written consent of Freeman Fox Ltd.
Freeman Fox Ltd is not required to update any of the content made available in this newsletter, including but not limited to any research commentary, forecasts, recommendations or other analysis in this newsletter. Therefore, for the avoidance of any doubt, material made available in this newsletter may not be accurate after the date of publication or the date on which it is displayed in the newsletter.
To the extent permitted by law, Freeman Fox Ltd and their respective directors, officers, employees, contractors and agents disclaim all responsibility to you for any loss, liability, claim, expense (including but not limited to legal costs and resultant defence or settlement costs) or damage whatsoever, whether direct, consequential, special, incidental, punitive or indirect (including but not limited to loss of profits, trading losses and damages that result from delay, loss or inconvenience) arising out of or in connection with the content of the newsletter and/or any omissions from the content whether in contract, tort (including negligence), statute or otherwise and even if Freeman Fox Ltd has been advised of the possibility of such damage or loss.
If you require assistance in relation to your personal investment situation, contact an authorised representative of Freeman Fox Ltd.