Positive note
May 11th, 2009 by Cale McCulloch
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 8574.65 | 164.8 | 2.0% |
| NASDAQ | 1739 | 22.76 | 1.3% |
| S P 500 | 929.23 | 21.84 | 2.4% |
| FTSE 100 | 4462.09 | 63.41 | 1.4% |
| Nikkei 225 | 9432.83 | 47.13 | 0.5% |
| SPI Futures | 3946 | 21 | 0.5% |
| All Ords | 3,920.00 | 7.5 | 0.2% |
| Oil | 58.58 | 1.91 | 3.4% |
| Gold | 914.9 | -0.6 | -0.1% |
| Silver | 13.955 | -0.075 | -0.5% |
| Aluminium | 1515.5 | -35 | -2.3% |
| Copper | 4752 | -8 | -0.2% |
| Lead | 1473.5 | -7.5 | -0.5% |
| Nickel | 13255 | 220 | 1.7% |
| Tin | 14340 | 315 | 2.2% |
| Zinc | 1541 | -48 | -3.0% |
U.S markets finished on a positve note Friday following on from the Stress test results released on Thursday night. Investors appeared happy with the results and satisfied that they were not as bad as some had expected. Although there is a large amount of capital to be raised as a result of the test, it is important to note that it is not Tier 1 capital but rather the mix of capital for the likes of Bank of America. This means that they can rearrange the capital structure through conversion of preferred equity into common stock which will be less dilutive to share holders. The US Bank Index closed 12% higher for the week ended Friday, 8 May 2009.
Also contributing to gains were Industrials and Retailers ahead of the retail sales data to be released this week. There was also better than expected unemployment data coming through for April, with 539,000 people losing their jobs for the month.
Base metals ended the session mixed with Copper, Zinc, Aluminium, and Nickel, all drifting lower by between 0.5% and 2% while Tin and Lead gained slightly. Energy was the strong performer, with Crude Oil breaking through USD 58 a barrel for the first time in six months. This should bring continued strength to the energy sector. It should be pointed out that gains in oil have been driven by Index buying and speculation opposed to demand side buying that would constitute a fundamental shift in energy prices at this point.
It should be a strong day on the market, enjoy the gains.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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