Europe sets the tempo
September 8th, 2009 by Cale McCulloch
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 9441.27 | 96.66 | 1.0% |
| NASDAQ | 2018.78 | 0 | 0.0% |
| S P 500 | 1016.4 | 13.16 | 1.3% |
| FTSE 100 | 4933.18 | 81.48 | 1.7% |
| Nikkei 225 | 10320.94 | 0 | 0.0% |
| ASX 200 | 4445.2 | 9.7 | 0.2% |
| COMEX Gold - Dec 09 | 996.7 | -1 | -0.1% |
| COMEX Silver - Sep 09 | 16.285 | -0.005 | -0.0% |
| COMEX Copper - Sep 09 | 286.65 | 0.15 | 0.1% |
| WTI Spot | 68.11 | 0 | 0.0% |
| AUD-USD | 0.8555 | -0.0001 | -0.0% |
| Aluminium | 1816 | -10 | -0.5% |
| Copper | 6280 | 0 | 0.0% |
| Lead | 2255 | 31 | 1.4% |
| Nickel | 17955 | -345 | -1.9% |
| Tin | 14605 | -5 | -0.0% |
| Zinc | 1908 | 26 | 1.4% |
U.S stock markets were closed overnight for the labour day holiday which marks the end of summer holidays for many professional traders and fund managers. With the closure of US markets, Asia will look to the European zone for guidance this morning, but unlikely to do so with the same conviction. European markets surged higher on the back of a takeover bid for Cadbury from Kraft foods which valued the company at 10.2 Billion dollars. Cadbury management have initially rejected the proposal but Kraft say they will continue to pursue the Confectioner. Cadbury shares soared some 37% on the back of this and dragged markets higher with it. The European indices climbed between 1 and 1.8% overnight.
Helping sustain the rally in Europe was strength in Base Metals, with Zinc the only exception, closing about 1% lower. Strength in Base Metals should flow through to the local miners this morning. Gold held its ground just below USD 1000 per ounce, closing at USD 997 a troy ounce in London.
Oil reversed early gains to close 2c lower at USD 68 a barrel. The reluctance of Oil to rally along with other commodities, and the broader market is, quite simply, a reflection of the lack of conviction in the current rally. This is further exemplified by the strength of Healthcare and Gold stocks recently as investors hedged their bets on the continuance of the current rally, and economic recovery in general.
Domestically, the SPI points to an open 18 points higher, although market movement will be dictated by Asia as they open throughout the morning. We have seen weakness throughout the trading sessions of late, with markets struggling to hold on to early gains. A continuation of this will likely see the market move lower in the short term.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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