Growing optimism
May 7th, 2009 by Bryden Elssmann
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 8512.28 | 101.63 | 1.2% |
| NASDAQ | 1759.1 | 4.98 | 0.3% |
| S P 500 | 919.53 | 15.73 | 1.7% |
| FTSE 100 | 4396.49 | 59.55 | 1.4% |
| Nikkei 225 | 8977.37 | 149.11 | 1.7% |
| SPI Futures | 3948 | 83 | 2.1% |
| All Ords | 3,840.00 | -22.1 | -0.6% |
| Oil | 56.29 | 2.48 | 4.6% |
| Gold | 879.5 | -4.8 | -0.5% |
| Silver | 11.49 | 0.195 | 1.7% |
| Aluminium | 1491 | 12.5 | 0.8% |
| Copper | 4591 | -49 | -1.1% |
| Lead | 1408 | -18.5 | -1.3% |
| Nickel | 12005 | 105 | 0.9% |
| Tin | 13400 | 650 | 5.1% |
| Zinc | 1522 | 21 | 1.4% |
In economic news, the number of US private sector job losses in April touched the lowest level since November 2008, according to the ADP Unemployment report. This latest data backs up other better-than-expected data in suggesting that the worst of the recession has passed. A number of analysts have since downgraded their expectations for Friday’s Non-farm payrolls employment report.
The US Government is expected to officially release the results of the stress tests tonight, although there has already been plenty of speculation and unconfirmed reports. Several of these have suggested that only 10 of the 19 banks will need further help, revealing how well the sector as a whole would cope should there be another leg down in the recession.
A 5 per cent rise in copper and solid gains on Wall Street pushed the Australian dollar higher, with the local unit trading at a seven-month high of US74.78 cents, from yesterday’s close at US73.85c.
News Corp CEO, Rupert Murdoch declared that “the worst is over” for the US economy. The comments have eased fears of continued deterioration for News Corporation (ASX Code: NWS). NWS share price has fallen more than 46%, unable to escape the global economic crisis. NWS is shifting away from traditional publishing and newspapers and investing in online media and other revenue streams. When asked about how long it would take for News Corp to generate enough online revenue from its publishing businesses to make up for lost print revenue, Mr Murdoch said it will take at least a couple of years. Mr. Murdoch reiterated that the business model has to change in light of the present situation. The media sector as a whole has been heavily sold off. Stocks to keep an eye on include NWS and FXJ.
Westpac announced it will be cutting is interim dividend by 20% to 56 cents from 70cents.
Shares are expected to open higher after Wall Street and commodities rose on growing confidence about the US economy.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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