Investors hit the sell button
June 16th, 2009 by Bryden Elssmann
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 8612.13 | -187.13 | -2.1% |
| NASDAQ | 1816.38 | -42.42 | -2.3% |
| S P 500 | 923.72 | -22.49 | -2.4% |
| FTSE 100 | 4326.01 | -115.94 | -2.6% |
| Nikkei 225 | 10039.67 | -96.15 | -0.9% |
| SPI Futures | 3997 | -34 | -0.8% |
| All Ords | 4,030.00 | -31.1 | -0.8% |
| Oil | 70.55 | -1.58 | -2.2% |
| Gold | 927.5 | -13.2 | -1.4% |
| Silver | 14.03 | -0.845 | -5.7% |
| Aluminium | 1586 | -55 | -3.4% |
| Copper | 5075 | -165.5 | -3.2% |
| Lead | 1720 | -76.5 | -4.3% |
| Nickel | 15050 | -550 | -3.5% |
| Tin | 15340 | -360 | -2.3% |
| Zinc | 1601.5 | -71 | -4.2% |
Wall Street
Wall Street posted its worst slide in a month, with the key indices all falling more than 2 percent. Stocks slumped as weaker oil prices and more geopolitical unrest raised worries that the recession may not be disappearing as soon as some had hoped. The Dow fell 187.13 points, or 2.13 per cent, to 8612.13, but remains up 33 percent from its March low. The SP 500 index fell 22.49 points, or 2.38 percent, to 923.72. A pullback was not surprising after a three-month rally.
Oil fell from an eight-month high after Russia expressed confidence in the U.S. dollar as the world's reserve currency, increasing the greenback's safe-haven appeal. Commodity prices and the dollar have moved inversely of late. Gains in the dollar make oil more expensive for holders of other currencies. Oil fell $US1.42, or 2 per cent to $US70.62 a barrel.
Australian Market
Australian stocks are likely to open lower on Tuesday, led by resources companies after weak U.S. manufacturing data sent metals and oil prices down on fears demand would remain weak. The SPI fell 1.4 percent to 3,973.0, a 58.7-point.
Rio Tinto Ltd is due to release the prospectus for its $15.2 billion rights offer. The 21-for-40 offer is being priced at A$28.29, a massive discount against Rio's close of A$75.50 on Monday.
Investors will also be closely watching the minutes from the Reserve Bank of Australia's June meeting, due at 11:30 AEST to see if it elaborates on its motives for leaving the door open to easing, after holding rates steady at 3 percent.
The Aussie dollar fell to $US0.8026, down over a cent from $US0.8153 hindered by a firmer U.S. dollar and lower Asian stock markets.
CSL Limited
A second inside day on CSL, found at the end of a downtrend and located near a level of support, may signal a bullish shift in trend. The break of yesterdays high is a strong buy signal. Watch CSL for a possible upward move to fill the gap at $33.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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