Our market set to rise, commodities and Dow up 100
April 15th, 2010 by Katy Loi
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 11,123.11 | 103.69 | 0.9% |
| NASDAQ | 2,504.86 | 38.87 | 1.6% |
| S P 500 | 1,210.65 | 13.35 | 1.1% |
| FTSE 100 | 5,796.25 | 34.59 | 0.6% |
| Nikkei 225 | 11,204.90 | 43.67 | 0.4% |
| ASX 200 | 4,994.70 | 43.1 | 0.9% |
| COMEX Gold - Dec 09 | 1,159.10 | 5.7 | 0.5% |
| COMEX Silver - Sep 09 | 18.49 | 0.241 | 1.3% |
| COMEX Copper - Sep 09 | 361.55 | 1.5 | 0.4% |
| WTI Spot | 86.76 | 2.95 | 3.5% |
| AUD-USD | 0.9351 | 0.0058 | 0.6% |
| Aluminium | 2,419.50 | 50.5 | 2.1% |
| Copper | 7,924.50 | 79.5 | 1.0% |
| Lead | 2,333.50 | 28 | 1.2% |
| Nickel | 25,875.00 | 305 | 1.2% |
| Tin | 18,630.00 | -95 | -0.5% |
| Zinc | 2,385.50 | 18 | 0.8% |
The Dow closed up over 100 points overnight as the Beige book was released with results suggesting the economy expanded across all Federal Reserve Districts except St. Louis, which reported softened economic conditions. Fed Chairman Ben S. Bernanke said the U.S. expansion will remain moderate as the economy contends with weak construction spending and high unemployment. While labor markets remained weak, some hiring was evident, the Fed said. Also boosting the market was better-than-estimated corporate earnings with JPMorgan Chase & Co., Intel Corp. and CSX Corp. posted earnings that topped analysts’ average estimates. United Parcel Service Inc., the world’s largest package-delivery company, boosted its full-year forecast after rising demand for overseas shipments helped produce a first-quarter profit that beat analysts’ estimates. Also supporting the market was the release of U.S. retail sales which climbed the most in four months in March. Crude oil futures jumped after the U.S. Energy Department reported an unexpected decline in inventories and gains in equities signaled demand may improve with the economy. Oil for May delivery rose 2.1 percent to $85.84 a barrel in New York. Fresh speculative buying interest after weaker price action Tuesday pushed Comex gold futures higher. A lower U.S. dollar index and higher oil prices also supported gold.
Our market is set to open up 26 points as indicated by SPI futures. The market closing above the technical level of 5000 yesterday is a strong sign of strength from buyers. Today our market could test support, initially at 4990/5000, before a rally after midday should Chinese GDP and production figures come out positive. The next technical level of resistance will be 5048. Data out in China include GDP (may reach 12.2% year on year), industrial production (expected growth to remain high at around 20% year on year), CPI (expected to be 2.3% below consensus of 2.6%) , Chinese FAI (Fixed Asset investment growth to rebound to 27.6% year on year) and retail sales out at midday. Economists predict that China will report its fastest growth in almost three years today. In company data out today - RIO’s quarterly production report and its annual general meeting to be held in London, NAB Q1 business conditions data and OZ Minerals quarterly production report. Also out today domestically is consumer inflation expectations for March (previous was 3.2%). Tonight in the US is Initial jobless claims, with consensus for a fall to 439k from previous 460k.
On the back of the positive data, and our market pushing through 5000, we should see good returns made in covered call writing for resource, oil and gold stocks over the next couple of months.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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