Economic stimulus sends markets higher
September 7th, 2009 by Bryden Elssmann
Closing Data
| 9256.26 | -24.71 | % | |
|---|---|---|---|
| NASDAQ | 1973.16 | -19.89 | -1.0% |
| S P 500 | 997.08 | -5.64 | -0.6% |
| FTSE 100 | 4690.53 | 43.4 | 0.9% |
| Nikkei 225 | 10388.09 | 135.56 | 1.3% |
| COMEX Gold - Dec 09 | 962.9 | -3.4 | -0.4% |
| COMEX Silver - Sep 09 | 14.645 | -0.115 | -0.8% |
| COMEX Copper - Sep 09 | 275.2 | -6 | -2.1% |
| WTI Spot | 71.94 | -0.03 | -0.0% |
| Aluminium | 2001.5 | -14 | -0.7% |
| Copper | 6035 | -97 | -1.6% |
| Lead | 1897 | -33.5 | -1.7% |
| Nickel | 20075 | 335 | 1.7% |
| Tin | 15700 | 345 | 2.2% |
| Zinc | 1872.5 | 21.5 | 1.2% |
The market is expected to open higher this morning following a positive lead from Wall Street on Friday. The Dow gained 96.66 points, or 1.03% to 9441.27 points. Commodity prices were also stronger overseas which should aid our market.
Over the weekend, Finance Ministers from the Group of 20 leading economies met in London and reaffirmed the need to maintain economic stimulus measures, including low interest rates, until a recovery is secured. A number of principles were agreed on. Among them was a blueprint to raise capital requirements at banks to strengthen the world financial systems as the recovery takes hold. Australian banks are well capitalised compared to their international peers.
Gold has traded lower, down $US1 on light volumes ahead of the Labour Day holiday in the US on Monday. Gold settled $US996.70 an ounce, within a whisker of $US1000 an ounce.
In currency markets, the Australian dollar strengthened against the US dollar, trading above US85 cents. The currencies have been tracking equities, with investors heading into higher yielding currencies (AUD) when stocks rally and taking cover in the safe-haven US Dollar and Yen when stocks fall. Pledges by the G-20 to maintain economic stimulus, triggered investors to buy higher yielding assets, pushing the Australian dollar to a 12 month high.
Quote of the day
“The only summit meeting that can succeed is the one that does not take place.” Barry Goldwater
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