Profit taking ahead of stress test
May 8th, 2009 by Bryden Elssmann
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 8409.85 | -102.43 | -1.2% |
| NASDAQ | 1716.24 | -42.86 | -2.4% |
| S P 500 | 907.39 | -12.14 | -1.3% |
| FTSE 100 | 4398.68 | 2.19 | 0.0% |
| Nikkei 225 | 9385.7 | 408.33 | 4.5% |
| SPI Futures | 3919 | 6 | 0.2% |
| All Ords | 3,912.00 | 72 | 1.9% |
| Oil | 56.67 | 0.38 | 0.7% |
| Gold | 915.5 | 4.5 | 0.5% |
| Silver | 14.03 | 0.32 | 2.3% |
| Aluminium | 1550.5 | 59.5 | 4.0% |
| Copper | 4760 | 169 | 3.7% |
| Lead | 1481 | 73 | 5.2% |
| Nickel | 13035 | 1030 | 8.6% |
| Tin | 14025 | 625 | 4.7% |
| Zinc | 1589 | 67 | 4.4% |
On Thursday the Australian share market posted its highest close so far in calendar 2009, finishing up almost two per cent following gains overseas and better local jobs data. The benchmark ASX200 was up 71.6 points or 1.85% to 3938.7.
The Dow fell 102.43 points, or 1.2% to 8409.85. The SP 500 fell 12.14 points, or 1.32% to 907.39. US stocks fell as investors stressed out about the results of a Government banking test, selling down Wells Fargo and other banks. TEN of the 19 largest US financial institutions will be required to raise a combined $US75 billion in capital, as the US Government, for the first time, divided healthy banks from those which may need help to weather a worsening economy. The Fed’s report on the health of the nation’s 19 largest lenders showed that losses at the banks under “more adverse” economic conditions than most economists anticipate could total $599.2 billion over two years.
The Australian dollar has risen for the fifth straight session, moving in line with a stronger euro during offshore trade after the European Central Bank announced a modest plan to purchase “covered bonds”. The Aussie dollar is at 75.43US cents.
Oil continued to rally at $US56.71 a barrel up US32cents. The oil market has closely followed equities for much of 2009, viewing stocks as a predictor for the future strength of the US economy, which will, in turn, determine oil demand.
Gold was stronger, up $US4.50 or .5% to $US915.50 an ounce. We continue to look at Newcrest (NCM) as a defensive play should the market pull back.
The Reserve Bank of Australia publishes its quarterly statement on monetary policy at 11:30am today, with the market looking for clues to the RBA’s stance on official interest rates.
The market is expected to open weaker this morning, the SPI is currently down 21 points.
Have a great weekend!
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.