Market expected to open weaker
October 5th, 2009 by Cale McCulloch
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 9487.67 | -21.61 | -0.2% |
| NASDAQ | 2048.11 | -9.37 | -0.5% |
| S P 500 | 1025.21 | -4.64 | -0.5% |
| FTSE 100 | 4988.7 | -59.11 | -1.2% |
| Nikkei 225 | 9731.87 | -246.77 | -2.5% |
| ASX 200 | 4,602 | -99.5 | -2.1% |
| COMEX Gold - Dec 09 | 1004.3 | 3.6 | 0.4% |
| COMEX Silver - Sep 09 | 16.23 | -0.21 | -1.3% |
| COMEX Copper - Sep 09 | 268.15 | -5.55 | -2.0% |
| WTI Spot | 69.66 | -1.16 | -1.6% |
| AUD-USD | 0.8657 | -0.0045 | -0.5% |
| Aluminium | 1786 | -72 | -3.9% |
| Copper | 5872 | -210 | -3.5% |
| Lead | 2085 | -107 | -4.9% |
| Nickel | 17175 | -390 | -2.2% |
| Tin | 14700 | -545 | -3.6% |
| Zinc | 1852 | -63.5 | -3.3% |
US stock markets slipped on Friday night on the back of worse than expected jobless data that showed American employers shed 263,000 during September. The worse than expected data took the Unemployment rate to a whopping 9.8%, a 26 year high. The market managed to regain some of the territory lost earlier in the session, with the Dow down just 21 points at the bell. The bulk of the losses attributable to the rising unemployment came through in Thursday night’s sell off. Factory orders also failed to impress, falling 0.8% for the month when most expected them to remain flat. The NASDAQ and S&P 500 were down a little less than 0.5% for the session.
There is less economic data set to be released in the states this week, which will allow the local market to focus on the RBA rate decision due out tomorrow. Rates are likely to remain on hold this month, while the RBA awaits domestic jobs data due out on Thursday. One could argue that increasing consumer spending and sentiment could be cause for a rate rise before the risk of inflation gets to high. The RBA should want to see a return to growth in the jobs market prior to hiking rates as a premature increase could stem capital investment by companies and hence slow job creation and protract the downturn further than necessary.
Base metals were weak with the exception of Tin. Copper, Lead, Zinc, Aluminium, and Nickel all ended the session lower by between 0.8 and 3.5%. but the big miners may provide some support for the local market, with BHP ADRs trading in NY showing a flat open for the market heavyweight. Gold managed to close up 3.6 USD at US$1004.3 a troy ounce on some safe haven buying, while Oil gave back some 87c at US$ 69.95 per barrel.
The SPI futures have us opening 21 points lower this morning at 4588. The market appears well supported around 4600 so the key will be whether the market manages to close above this level.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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