Markets looking for a reason to sell
April 28th, 2009 by Bryden Elssmann
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 8025 | -51.29 | -0.6% |
| NASDAQ | 1679.41 | -14.88 | -0.9% |
| S P 500 | 857.51 | -8.72 | -1.0% |
| FTSE 100 | 4167.01 | 11.02 | 0.3% |
| Nikkei 225 | 8726.34 | 18.35 | 0.2% |
| SPI Futures | 3732 | 16 | 0.4% |
| All Ords | 3,690.00 | 21.9 | 0.6% |
| Oil | 49.29 | -1.36 | -2.7% |
| Gold | 908.2 | -5.9 | -0.6% |
| Silver | 12.955 | 0.035 | 0.3% |
| Aluminium | 1398.5 | -18 | -1.3% |
| Copper | 4305.5 | -56.5 | -1.3% |
| Lead | 1375 | -35.5 | -2.5% |
| Nickel | 11010 | -40 | -0.4% |
| Tin | 12400 | -300 | -2.4% |
| Zinc | 1341 | -42.5 | -3.1% |
Wall Street slipped on fears about the impact of the Swine Flu and concerns over the next batch of quarterly results. The Dow fell 51.29 points, or 0.64 per cent, to 8025.00, after popping into the green mid-session. The S&P 500 fell 8.72 points, or 1.01 per cent, to 857.51. Widespread selling was limited by relief that General Motors might be able to escape bankruptcy.
General Motors announced it will end production of its Pontiac brand in South Australia under sweeping cutbacks designed to keep the company alive. This is a significant blow for Holden’s Elizabeth plant which last year began exporting its VE Commodore to its parent company in the US where the car was rebadged and sold as a Pontiac G8. The global export deal was said to be worth $A1 billion a year to Holden.
National Australia Bank’s first-half year profit slightly missed market forecast, down 9.4 percent to $2 billion from $2.24 billion a year earlier. The company announced it will be cutting its interim dividend to 73 cents from 97 cents in an effort to preserve capital to provide a buffer against deteriorating economic conditions and rising bad debts.
Swine flu was declared a public health emergency by the World Health Organisation, straining global markets. Fears of a swine-flu pandemic helped the shares of drug makers with antiviral products, GlaxoSmithKline jumped $US2.22, or 7.6 per cent, to $US31.56 while Roche Holding, which makes a flu drug called Tamiflu, added $US1.32, or 4.3 per cent, to $US31.72. On the ASX, shares in Biota Holdings (BTA) surged 81.61 percent, to $1.58. Biota specializes in the discovery and development of pharmaceuticals, focusing on research for the treatment of viral respiratory diseases, particularly influenza.
Oil fell on fears the spread of swine flu could compound a downtrend in petroleum demand, particularly jet fuel consumption. Oil fell $US 1.36 or 2.69 percent to $US49.29 following the European health commissioner’s recommendation to avoid all “nonessential travel” to the affected areas, basically all of North America. Airline stocks suffered on the back of the announcement with Qantas falling 4 percent to close at $1.90.
Commodity markets were weaker, which may put pressure on the resources sector. Oil and base metals closed lower overnight with Gold down $US5.09 to $US908.2 an ounce.
The SPI is flat only up 2 points to 3718 giving few clues on the direction the market will open today.
QUOTE:
An economist is someone who will know tomorrow why the things he predicted yesterday didn’t happen today. Dr Lawrence Peter
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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