Market in a precarious place given economic uncertainty
July 6th, 2010 by Bryden Elssmann
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 9,686.48 | -46.05 | -0.5% |
| NASDAQ | 2,091.79 | 0 | 0.0% |
| S P 500 | 1,022.58 | 0 | 0.0% |
| FTSE 100 | 4,823.53 | -14.56 | -0.3% |
| Nikkei 225 | 9,266.78 | 63.07 | 0.7% |
| ASX 200 | 4,222.10 | -16.6 | -0.4% |
| COMEX Gold - Dec 09 | 1,207.70 | 1 | 0.1% |
| COMEX Silver - Sep 09 | 17.719 | -0.071 | -0.4% |
| COMEX Copper - Sep 09 | 291.6 | 3.9 | 1.4% |
| WTI Spot | 72.14 | -0.81 | -1.1% |
| AUD-USD | 0.8398 | -0.0021 | -0.2% |
| Aluminium | 1,933.00 | 5 | 0.3% |
| Copper | 6,430.50 | 76.5 | 1.2% |
| Lead | 1,736.00 | 43.5 | 2.6% |
| Nickel | 19,115.00 | -35 | -0.2% |
| Tin | 17,300.00 | -200 | -1.1% |
| Zinc | 1,770.00 | 43.5 | 2.5% |
European stocks lost ground, unable to make any headway following a disappointing US non-farm payrolls data last week. The US employment report has dented confidence and raised fears of a global economic slowdown. Volumes were thin with Wall Street closed for the 4th of July Independence Day holiday. The lacklustre session on European markets came after Friday’s US non-farm employment report for June showed a decline of 125,000 jobs, though this was not as bad as some had feared. The data did, however, point to a weaker outlook for the world’s largest economy opening the debate as to what measures are required to get the economy on the path of sustained growth.
On the Australian market investors will be awaiting the Reserve Bank of Australia’s interest rate decision this afternoon. The RBA board is to announce at 1430 AEST if it will lift, cut or hold the current cash rate from 4.5 percent. The consensus is that the RBA will leave the cash rate unchanged, however the bank has hinted at the likelihood of a further interest rate rise given the inflation outlook. The inflation gauge has slowed to 3.6 percent from 3.7 percent previously, but is still above the RBA’s target band for inflation of 2 – 3 percent.
Boral
Boral are in a trading halt this morning following an announcement they will be conducting an equity raising. The offer size is a 1 for 5 renounceable pro rate entitlement offer to raise approximately $490 million. The offer price is $4.10 per share or a 16.2% discount to the closing price on 5 July 2010.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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