Global recovery worries push market lower
July 30th, 2009 by Bryden Elssmann
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 9070.72 | -26 | -0.3% |
| NASDAQ | 1967.76 | -7.75 | -0.4% |
| S P 500 | 975.15 | -4.47 | -0.5% |
| FTSE 100 | 4547.53 | 18.69 | 0.4% |
| Nikkei 225 | 10113.24 | 25.98 | 0.3% |
| ASX 200 | 4,143 | -26.8 | -0.6% |
| COMEX Gold - Aug 09 | 927.2 | -11.9 | -1.3% |
| COMEX Silver - Jul 09 | 13.258 | -0.482 | -3.5% |
| COMEX Copper - Jul 09 | 2.4775 | -249.5725 | -99.0% |
| WTI Spot | 63.35 | -3.88 | -5.8% |
| AUD-USD | 0.8145 | -0.0029 | -0.4% |
| Aluminium | 1775.5 | -38.5 | -2.1% |
| Copper | 5410.5 | -204.5 | -3.6% |
| Lead | 1732.5 | -41.5 | -2.3% |
| Nickel | 16350 | -645 | -3.8% |
| Tin | 14350 | -355 | -2.4% |
| Zinc | 1621.5 | -83.5 | -4.9% |
Australian stocks are set to open lower, led down by miners and energy companies, after metals and oil prices slid on fears China might curb lending to try to stem market excesses, which could stall a global recovery. The China worries and a sharp drop in U.S. durable goods orders in June rattled Wall Street overnight. The Dow Jones industrial average dropped 26 points. The S&P500 Index fell 4 and the NASDAQ declined 8 points.
The Aussie dollar is buying 81.68 US cents, 77.64 Yen, 58.22 Euro cents and 49.91 British Pence.
Gold declined $12 to US$929.70 an ounce while Silver slipped 48 cents to US$13.26 and copper dropped 4 cents at US$2.48.
Oil fell $3.88 to US$63.35 a barrel. As recommended in yesterday’s Market Fox, AUG 09 4300 PUTS on WPL (WPLYX7), we are looking for WPL to hit $42.50 in the coming days before taking profits.
Finally, today is Options Expiry, please contact your broker to discuss any open positions.
Company News
FMG - Iron ore miner Fortescue Metals Group Ltd shares fell 5.24 per cent to $4.16. Fortescue estimates that its Glacier Valley tenement has a potential resource of 1.23 billion metric tonnes of magnetite iron ore. The company says the project is subject to a joint venture arrangement with an Australian subsidiary of China’s Baosteel Group Corporation. Fortescue says the Glacier Valley material shows the characteristics of a quality magnetite deposit with a grade of 33 per cent iron which can be processed to a grade of around 67 per cent based on a recovery rate of 29 per cent. Fortescue Metals Group has posted net losses in the last four years.
LEI - Leighton Holdings Ltd shares dropped 2.76 per cent to $27.46. The company says it has signed an agreement with Australian Rail Track Corporation to create the Upper Hunter Valley Alliance which will deliver a $152 million program of works on the Hunter Valley Rail corridor. Leighton says in alliance with ARTC, Leighton Contractors will be commissioned to undertake civil and track work for the ARTC into 2018. ARTC CEO David Marchant says demand for Hunter Valley coal is set to grow exponentially by 2012. Mr Marchant says against the backdrop of volatile world markets, this program of works will be essential in enabling the Hunter Valley corridor to meet future demand, deliver coal to port efficiently and thereby contribute to the ongoing recovery of the Australian economy. Leighton Holdings net profits have been growing year on year over the past four years.
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.