Market Looks Set To Open Higher
March 1st, 2010 by Cale McCulloch
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,325.26 | 4.23 | 0.0% |
| NASDAQ | 2,238.26 | 4.04 | 0.2% |
| S P 500 | 1,104.49 | 1.56 | 0.1% |
| FTSE 100 | 5,354.52 | 76.3 | 1.4% |
| Nikkei 225 | 10,126.03 | 24.07 | 0.2% |
| ASX 200 | 4,651.80 | 14.1 | 0.3% |
| COMEX Gold - Dec 09 | 1,118.50 | 10 | 0.9% |
| COMEX Silver - Sep 09 | 16.5 | 0.39 | 2.4% |
| COMEX Copper - Sep 09 | 324.7 | 5.45 | 1.7% |
| WTI Spot | 79.53 | 1.08 | 1.4% |
| AUD-USD | 0.8957 | 0.0071 | 0.8% |
| Aluminium | 2,050.50 | -12 | -0.6% |
| Copper | 7,072.00 | 26 | 0.4% |
| Lead | 2,138.50 | -11.5 | -0.5% |
| Nickel | 20,495.00 | 220 | 1.1% |
| Tin | 16,675.00 | -155 | -0.9% |
| Zinc | 2,157.50 | 9 | 0.4% |
Markets look set to open higher this morning on the back of stronger commodity prices. Oil, Gold and Base Metals climbed across the board. Shares in AIG plummeted 10% on Friday night following a company report showing a USD 9Bn loss predominantly on the back of selling of assets to pay down debt.
GDP numbers climbed to 5.9, but the spending component of the figure was worse than expected which created some discomfort among investors, while a fall in existing home sales rattled the market.
All in all the Markets did well to absorb the swag of worse than expected data and reports with the Dow up by 4 points at the close. The tech heavy NASDAQ also closed 4 points higher while the S&P 500 managed gains of some 1.5 points.
Domestically, company reporting has finished so all eyes will be on the RBA rate announcement due out at 2.30pm AEST Tuesday. Traders are torn on the decision, with 48% calling for a rate rise. Although the commodity prices are strong, the case for rates to be on hold rests almost entirely on Sovereign risks associated with problems in the Euro zone, and concerns that further rises at this time may shatter confidence. Given this, we may see the RBA sit on the side lines a further month, just to see what plays out in the Euro zone.
The SPI has us opening 16 points higher this morning, with gains likely driven by the commodity stocks, while BHP and WPL will trade Ex dividend this morning, paying 49c and 55c respectively.
The market looks set for another volatile month, so it would be wise to get the March call options sold as soon as possible.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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