Dow down 60 points weaker job reports
August 13th, 2010 by Katy Loi
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,319.95 | -58.88 | -0.6% |
| NASDAQ | 2,190.27 | -18.36 | -0.8% |
| S P 500 | 1,083.61 | -5.86 | -0.5% |
| FTSE 100 | 5,266.06 | 20.85 | 0.4% |
| Nikkei 225 | 9,212.59 | -80.26 | -0.9% |
| ASX 200 | 4,400.90 | -54.6 | -1.2% |
| COMEX Gold - Dec 09 | 1216.7 | 17.5 | 1.5% |
| COMEX Silver - Sep 09 | 18.065 | 0.163 | 0.9% |
| COMEX Copper - Sep 09 | 328.4 | 3 | 0.9% |
| WTI Spot | 75.74 | -2.28 | -2.9% |
| AUD-USD | 0.896 | -0.0001 | -0.0% |
| Aluminium | 2,131.50 | -19.5 | -0.9% |
| Copper | 7,180.00 | -24 | -0.3% |
| Lead | 2,028.00 | -19 | -0.9% |
| Nickel | 21,030.00 | -745 | -3.4% |
| Tin | 20,250.00 | -95 | -0.5% |
| Zinc | 2,010.00 | -13 | -0.6% |
The Dow closed down 60 points overnight on the back of data showing US jobless claims rose, pushing concerns growth is slowing. The market expected a decline in weekly claims. Initial jobless claims rose by 2,000 to 484,000 in the week ended Aug. 7, the highest level since mid February. Also adding to downward pressure was Cisco Systems Inc. falling after forecasting sales that missed analysts estimates. Oil dropped below $76 a barrel. Gold hit a fresh session high, as Newswire reports on Thursday said Goldman Sachs has predicted gold futures prices will be at $1,300.00 an ounce in the next six months, due to the likelihood of U.S. interest rates remaining very low and the probability that the Federal Reserve will continue a policy of quantitative easing of monetary policy. A sell off in European, Asian and U.S. stock markets on Wednesday and overnight suggests investors are moving to perceived safe-haven assets, including the U.S. dollar, U.S. Treasuries and gold. Gold traders have also gained fresh upside with technical momentum this week.
On a positive note, a sign to show that China has successfully reduced its rate of growth is its volatility index falling to the lowest level in 4 years which shows it is now on a better path to more sustainable growth. The Alpha shares Chinese volatility index, a gauge of investor fear of Chinese stocks, fell to 20.17, the lowest since Dec 15, 2006. Supporting signs of sustainable growth is Chinese demand for aluminium increasing across all sectors including, automotive, heavy truck and trailer, beverage can packaging and commercial building and construction. Also a sign of health in our economy is CBA reporting a record profit, a lot of which came from a reduction in provisions for bad and doubtful debts. Other companies which have reported positive results include RIO, NWS, and AWC all of which reinstated their dividend. Our market is now hovering around a Fibonacci support level at 4400, with the next level at 4345. We are likely to consolidate at these levels after
the aggressive selloff in the last 3 trading sessions.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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