Wall St wobbles as Gold continues to shine
November 23rd, 2009 by Cale McCulloch
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10318.16 | -14.28 | -0.1% |
| NASDAQ | 2146.04 | -10.78 | -0.5% |
| S P 500 | 1091.38 | -3.52 | -0.3% |
| FTSE 100 | 5251.41 | -16.29 | -0.3% |
| Nikkei 225 | 9497.68 | -51.79 | -0.5% |
| ASX 200 | 4,686 | -63.5 | -1.3% |
| COMEX Gold - Dec 09 | 1148.5 | 6.6 | 0.6% |
| COMEX Silver - Sep 09 | 18.45 | -0.005 | -0.0% |
| COMEX Copper - Sep 09 | 311 | 2.9 | 0.9% |
| WTI Spot | 76.7 | -0.76 | -1.0% |
| AUD-USD | 0.9145 | -0.005 | -0.5% |
| Aluminium | 1978 | -25 | -1.2% |
| Copper | 6731 | -30 | -0.4% |
| Lead | 2309 | -26 | -1.1% |
| Nickel | 16660 | -280 | -1.7% |
| Tin | 15000 | -100 | -0.7% |
| Zinc | 2196.5 | -8.5 | -0.4% |
US markets edged slightly lower on Friday night on the back of worse than expected results from Dell which added to fears that the economic recovery was faltering. The Company said profits had plunged 54% during the 3rd quarter, and also stated that they had lost market share to rival companies. However, strength in resource stocks including Barrick Gold and Freeport-McMoran last week helped the major indexes close out the week virtually unchanged. The Dow traded lower early in the session, but regained much of the losses late in the session to close down by just 14 points. While the S&P 500 ended the week lower by 0.2%, following 2 weeks of gains in the indexes.
Commodities were mixed, with Gold trading higher by about US$ 5 a Troy Ounce, while Oil gave back some ground, shedding USD 0.76 to close the week at $76.70 a barrel. Gold stocks may gain locally on the back of this strength while Big Oil producers are likely to be unchanged. Meanwhile in Base Metals, Copper, Lead, Zinc, Aluminium and Tin all traded higher by between 0.5 and 2%, with Nickel the only metal to fall, dropping 2.21%.
Strength in base Metals should lend support to the local market, with the Big Miners like BHP and RIO set to hold ground, while the financials may come under some continued selling pressure. Keep an eye on stocks that benefit from a falling $A, including CSL and QBE. Strength in the USD Friday night may lend some support to these lacklustre performers throughout the week.
The SPI has us opening some 7 points lower this morning, but markets may find some buying support later in the day in anticipation of another Mutual Fund Monday in the States tonight. As the name suggests this means the big Fund Managers put cash to work on Monday before going back to sleep throughout the remainder of a shortened holiday week.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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