Market slides sideways
June 22nd, 2009 by Cale McCulloch
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 7465.95 | -89.68 | -1.2% |
| NASDAQ | 1442.82 | -25.15 | -1.7% |
| S P 500 | 778.94 | -9.48 | -1.2% |
| FTSE 100 | 4018.37 | 11.54 | 0.3% |
| Nikkei 225 | 7557.65 | 23.21 | 0.3% |
| SPI Futures | 3372 | -28 | -0.8% |
| All Ords | 3,398.00 | 31 | 0.9% |
| Oil | 39.6 | 4.93 | 14.2% |
| Gold | 976.5 | -1.7 | -0.2% |
| Silver | 13.935 | -0.355 | -2.5% |
| Aluminium | 1296 | 15.5 | 1.2% |
| Copper | 3291 | 139.5 | 4.4% |
| Lead | 1085 | 25 | 2.4% |
| Nickel | 9860 | 135 | 1.4% |
| Tin | 11150 | 250 | 2.3% |
| Zinc | 1112.5 | 41.5 | 3.9% |
The market is likely to slide this morning given the lack of lead from the US markets which closed largely flat on Friday night. Although the SPI has us opening unchanged, the discount of 36 points from where the market closed to the current SPI level that resulted from a sell off after the bell on Friday afternoon should weigh on the market.
The Slide in energy prices on Friday night will weigh on the big Oilers, while Base metals were largely higher and should provide some degree of support for the big miners this morning.
The market will look for direction anywhere it can this week following the markets fall last week. It is likely to be driven largely by US Fed statements on Wednesday night regarding interest rates and stimulus. These may disappoint as the Fed will either need to, acknowledge the potential for Inflation and begin discussing an exit strategy from the ongoing stimulus if they feel the economy is turning, or announce prolonged lower level interest rates and in doing so imply that we will not be looking for the V shaped economic recovery that markets have priced in.
If you have uncovered stock, today might be a good opportunity to sell some calls out to July.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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