Investors abandon dollar for oil
September 10th, 2009 by Bryden Elssmann
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 9547.22 | 49.88 | 0.5% |
| NASDAQ | 2060.39 | 22.62 | 1.1% |
| S P 500 | 1033.37 | 7.98 | 0.8% |
| FTSE 100 | 5004.3 | 56.96 | 1.2% |
| Nikkei 225 | 10312.14 | -81.09 | -0.8% |
| ASX 200 | 4,522 | -1.5 | 0.0% |
| COMEX Gold - Dec 09 | 997.1 | -2.7 | -0.3% |
| COMEX Silver - Sep 09 | 16.47 | -0.04 | -0.2% |
| COMEX Copper - Sep 09 | 292.4 | -3.2 | -1.1% |
| WTI Spot | 71.31 | 0.21 | 0.3% |
| AUD-USD | 0.862 | 0.0001 | 0.0% |
| Aluminium | 1868 | -18 | -1.0% |
| Copper | 6415.5 | -50 | -0.8% |
| Lead | 2440 | -7.5 | -0.3% |
| Nickel | 17980 | -575 | -3.1% |
| Tin | 15275 | 175 | 1.2% |
| Zinc | 1960 | -7 | -0.4% |
Another positive session on Wall St overnight is likely to influence the local market this morning which is expected to open higher. The Dow Jones Industrial Average rose 49.88 points, or 0.53 per cent, to 9547.22. Leading the index, Caterpillar tacked on 3.1 per cent, while General Electric increased 2.6 per cent.
Energy companies may get a boost from a rise in the price of oil, however miners are likely to feel the pressure from a fall in base metal prices and gold.
Crude oil futures closed higher as investors abandoned the US dollar for oil and other assets overnight. Investors who have been using the US dollar as a stable spot in which to place funds during the recession have flocked to riskier assets this week. Crude oil futures are up about 5 per cent after spending most of last week below $US70 a barrel. Oil serves as a protective investment against inflation caused by a weaker US currency.
Shares in wealth management company AMP Ltd fell 0.32 per cent to $6.20 yesterday. Two of the company’s unlisted property trusts are to raise $550 million. According to a report in The Australian, two of the AMP Capital Investors unlisted property trusts; AMP Capital Wholesale Office Fund and AMP Capital Shopping Centre Fund are to raise the money on the corporate money market. AMP Capital Wholesale Office Fund is to raise $300 million, while AMP Capital Shopping Centre Fund is to raise $250 million through the issue of convertible notes. The paper reports AMP Capital office fund manager Henry Elliott saying that the funds will be used to repay debt and to build up cash for acquisitions. AMP’s profits took a big fall in 2008 from the previous years high of close to $1 billion.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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