Oil Out Shines Gold
December 1st, 2009 by Bryden Elssmann
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10344.84 | 34.92 | 0.3% |
| NASDAQ | 2144.6 | 6.16 | 0.3% |
| S P 500 | 1095.63 | 4.14 | 0.4% |
| FTSE 100 | 5190.68 | -55.05 | -1.0% |
| Nikkei 225 | 9345.55 | 264.03 | 2.9% |
| ASX 200 | 4,701 | 129.2 | 2.8% |
| COMEX Gold - Dec 09 | 1181.1 | 6.9 | 0.6% |
| COMEX Silver - Sep 09 | 18.495 | 0.193 | 1.1% |
| COMEX Copper - Sep 09 | 314.85 | 5.5 | 1.8% |
| WTI Spot | 77.28 | 1.23 | 1.6% |
| AUD-USD | 0.9151 | 0.0025 | 0.3% |
| Aluminium | 1957 | -52.5 | -2.6% |
| Copper | 6755 | -149.5 | -2.2% |
| Lead | 2289 | -55 | -2.3% |
| Nickel | 16125 | -650 | -3.9% |
| Tin | 14825 | -200 | -1.3% |
| Zinc | 2198 | -44 | -2.0% |
US stocks rose as concern eased over a possible default by Dubai World. Financial stocks enjoyed a late rally spurring the broader market to a slight gain as investors bet that major US banks would emerge relatively unscathed from the Dubai debt crisis. The S&P 500 added 0.4 percent to 1095.63 while the Dow closed up 34.92 points to 10344.84.
The Australian share market may be in for a flat start this morning following a choppy session on Wall St overnight. Focus today will be on the Reserve Banks decision on interest rates due this afternoon. Stronger commodities are likely to boost resource stocks today and may help to support the market.
Oil out shines Gold
Oil rallied as a British yacht crew was seized by Iran, while base metals and industrial metals were higher. Crude oil climbed $1.60. Oil hasn’t grabbed the headlines like gold’s climb to record highs near $US1200 an ounce, but it is no lagger. Oil prices have risen approx 65% year to date, outpacing gold’s 31% rise. The bulk of oil’s price gains have been attributed to the US dollars decline. But prices have been struggling to hold and surpass the $80 level prompting many questions regarding the commodities strength. The $80 level is appearing, and reappearing, as a psychological barrier. Oil has been consolidating at the $70 - $80 price- it may be poised for a move to the upside.
NAB
Shares in National Australia Bank Ltd (NAB) rose 5.96 per cent to $28.62 yesterday. The company has responded to the debt woes unfolding in Dubai, confirming its exposure to Dubai World. NAB says it does have a financial exposure to Dubai World but that it does not expect a material loss as a result of the recently announced debt moratorium. The statement follows similar ones from its peers in response to news that the Dubai Government’s holding company Dubai World and Nakheel have asked for at least a six month deferment on $60 billion in debt owed by the two companies. NAB’s 2009 net profit was down on its 2008 result and it’s lowest in five years.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
Disclaimer
The material in “Market Fox” (newsletter) is of a general nature only and neither purports nor is intended to be regarded as advice. No consideration has been given or will be given to your investment objectives, financial situation or needs. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk. Not all risks can be or will be explained in the newsletter. Previous results are no indication of future results. Actual results achieved in the market can vary considerably. The Directors and Representatives of Freeman Fox Ltd and their associates may hold securities in the companies presented.
The research made available in this newsletter is for your private use only and it is protected by applicable copyright laws and other applicable intellectual property right laws. You may not reproduce, distribute, disseminate, broadcast, sell, publish, circulate or give for free, any of the materials made available to you in this newsletter without first seeking the prior written consent of Freeman Fox Ltd.
Freeman Fox Ltd is not required to update any of the content made available in this newsletter, including but not limited to any research commentary, forecasts, recommendations or other analysis in this newsletter. Therefore, for the avoidance of any doubt, material made available in this newsletter may not be accurate after the date of publication or the date on which it is displayed in the newsletter.
To the extent permitted by law, Freeman Fox Ltd and their respective directors, officers, employees, contractors and agents disclaim all responsibility to you for any loss, liability, claim, expense (including but not limited to legal costs and resultant defence or settlement costs) or damage whatsoever, whether direct, consequential, special, incidental, punitive or indirect (including but not limited to loss of profits, trading losses and damages that result from delay, loss or inconvenience) arising out of or in connection with the content of the newsletter and/or any omissions from the content whether in contract, tort (including negligence), statute or otherwise and even if Freeman Fox Ltd has been advised of the possibility of such damage or loss.
If you require assistance in relation to your personal investment situation, contact an authorised representative of Freeman Fox Ltd.