Job Numbers Generate Small Gains On The US Market
December 7th, 2009 by Cale McCulloch
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10388.9 | 22.75 | 0.2% |
| NASDAQ | 2194.35 | 21.21 | 1.0% |
| S P 500 | 1105.98 | 6.06 | 0.6% |
| FTSE 100 | 5322.36 | 9.36 | 0.2% |
| Nikkei 225 | 10022.59 | 44.92 | 0.5% |
| ASX 200 | 4,702 | -72.4 | -1.5% |
| COMEX Gold - Dec 09 | 1169.5 | -48.8 | -4.0% |
| COMEX Silver - Sep 09 | 18.52 | -0.608 | -3.2% |
| COMEX Copper - Sep 09 | 323.75 | -0.75 | -0.2% |
| WTI Spot | 75.47 | -0.99 | -1.3% |
| AUD-USD | 0.9145 | -0.0094 | -1.0% |
| Aluminium | 2106.5 | -7.5 | -0.4% |
| Copper | 7026 | -45 | -0.6% |
| Lead | 2345 | -68 | -2.8% |
| Nickel | 15905 | -175 | -1.1% |
| Tin | 15050 | -80 | -0.5% |
| Zinc | 2353.5 | -22.5 | -0.9% |
US markets managed small gains on the back of better than expected jobs numbers that were released early in the session, showing that employers cut just 11,000 jobs for the month. This is the lowest number we have seen since the start of the Global Financial Crises back in late 07. Markets were expecting cuts of about 110,000, so the actual figure caused some excitement. The main excitement surrounded the USD, with the stronger than expected jobs data bringing speculation that the Central Bank may need to raise interest rates from emergency levels earlier than expected. The strength in the USD led to a mass exodus of money out of Gold, which has been the safe haven against the weak USD this year. Gold gave back almost USD 50 per Troy ounce to close at USD 1159 a Troy ounce.
The FDIC, who manage Bank collapses in the US, released a report which stated that, at the beginning of the year they thought there could be up to 200 collapses in 09, with large losses in the regional Banks. The FDIC said that many had survived and there have only been 130 collapses. Although the figure was 5 times that of 08 it is still much less than originally feared.
Gold was not alone in being slammed by the strength in the USD, with Oil also falling along with most base metals. The weakness in commodities will likely flow through to the local market this morning, with BHP ADR trading in NY closing at an AUD equivalent of 41.14, compared with a $41.40 close domestically. However, news that BHP and RIO signed a Pilbra production deal on Saturday may lend some support to the sector.
The SPI has us opening some 23 points higher, but the strength is likely to come from those companies that have lagged on the back of a stronger $A, the likes of CSL and QBE will be two big winners if the turnaround in the USD that occurred on Friday were to continue.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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