Oil finds support
April 9th, 2009 by Bryden Elssmann
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 7837.11 | 47.55 | 0.6% |
| NASDAQ | 1590.66 | 29.05 | 1.9% |
| S P 500 | 825.16 | 9.61 | 1.2% |
| FTSE 100 | 3925.52 | -5 | -0.1% |
| Nikkei 225 | 8595.01 | -237.84 | -2.7% |
| SPI Futures | 3663 | 38 | 1.0% |
| All Ords | 3,568.00 | -80.9 | -2.2% |
| Oil | 49.37 | 0.24 | 0.5% |
| Gold | 885.9 | 2.6 | 0.3% |
| Silver | 12.34 | 0.13 | 1.1% |
| Aluminium | 1492 | 37 | 2.5% |
| Copper | 3071 | 169 | 5.8% |
| Lead | 1040.5 | 91.5 | 9.6% |
| Nickel | 12710 | 1900 | 17.6% |
| Tin | 11550 | 1195 | 11.5% |
| Zinc | 1220.5 | 100 | 8.9% |
Wall Street
A choppy session on Wall Street ended positive following an announced merger in the building sector which overshadowed falling bank stocks. The Dow gained 47 points or 0.6% to close the session at 7837.1 while the S&P 500 also closed positive, up 9 points to 825.16. The merger between Pulte Homes and Centex, a US$3.1 billion deal, will see the creation of the country’s largest homebuilder. Investors welcomed the consolidation, cheering the deal as a shot in the arm for the struggling building sector. Adding to the rally was positive economic news showing a 1.5% fall in February inventory levels.
OIL
Oil prices rose overnight, ending a 3 day decline as a weekly US government report showed demand may outstrip supply. The price of crude traded between a US$47.37 and US$51.30 to settle at US$49.38 up 23 cents. Investors are looking at equity markets trying to gauge when fuel demand will rebound. It appears as if OPEC’s decision to reduce output in response to growing stockpiles may be putting a floor under prices. The outlook is that Oil prices should remain around US$50 for the short term. Stocks to look out for are WPL, STO and OSH (Ex. Div Today).
The Australian market is set to open positive this morning following offshore leads, however volumes on the ASX are expected to be light ahead of the long weekend. The market may pull back in the afternoon as investors look to trim their exposure over the Easter weekend.
Happy Easter.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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