Dow Closes 16pts Higher
June 21st, 2010 by Cale McCulloch
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,450.64 | 16.47 | 0.2% |
| NASDAQ | 2,309.80 | 2.64 | 0.1% |
| S P 500 | 1,117.51 | 1.47 | 0.1% |
| FTSE 100 | 5,250.84 | -3.05 | -0.1% |
| Nikkei 225 | 9,995.02 | -4.38 | -0.0% |
| ASX 200 | 4,551.90 | 24.9 | 0.5% |
| COMEX Gold - Dec 09 | 1,258.30 | 9.6 | 0.8% |
| COMEX Silver - Sep 09 | 19.184 | 0.408 | 2.2% |
| COMEX Copper - Sep 09 | 290.15 | -2.25 | -0.8% |
| WTI Spot | 77.18 | 0.39 | 0.5% |
| AUD-USD | 0.8728 | 0.0045 | 0.5% |
| Aluminium | 1,931.00 | -19.5 | -1.0% |
| Copper | 6,315.50 | -165 | -2.5% |
| Lead | 1,706.50 | -8.5 | -0.5% |
| Nickel | 19,305.00 | -380 | -1.9% |
| Tin | 17,450.00 | 150 | 0.9% |
| Zinc | 1,703.50 | -24 | -1.4% |
US stock markets managed some minor gains on Friday night after a report from Caterpillar showed strong machine sales in Asia. The news boosted other companies with global sales. At the close the Dow was higher by 16 points, the S&P by 1.5 and the NASDAQ higher by 2.6 points. Gold managed another record, closing out the week up USD 10 a Troy ounce at 1258.30, while Oil also managed to climb higher by roughly 0.4%.
All up it was a fairly quiet night, but what will move markets this morning is news out of China that the Chinese central bank will be more flexible with the Currency that has been pegged to the USD for about 18 months. How will it move markets… HIGHER! The simple reason being that Chinese companies and individuals will get better bang for the buck, assisting them in shifting towards a consumption driven economy opposed to the export led economy they have industrialised as. Essentially, they will be able to buy more resources from Australia….
Although base metals were weaker across the board on Friday, trading lower by between 0.2 and 2%, this will reverse when trading resumes this morning on the back of the increased demand that will come from the Chinese, or at least speculation of it. Similarly, BHP trading in NY shows a close at an AUD equivalent of 38.89 compared to the local close of 39.13 but this will also reverse, along with the broader commodity producers which should lead the push higher. Also set to push the market higher is Telstra, following an announcement over the weekend that it had reached a Heads of Agreement for an 11 billion dollar deal with the government’s NBN Co.
We are in for a strong day today, and possibly a strong week… The SPI has us opening 6 points higher, but we should test 4600 on the index today as a starting point, and maybe even push higher towards 4750 in the short term.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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