Profit taking drags markets lower
March 30th, 2009 by Cale McCulloch
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 7777.29 | -147.27 | -1.9% |
| NASDAQ | 1548.75 | -38.25 | -2.4% |
| S P 500 | 818.6 | -14.26 | -1.7% |
| FTSE 100 | 3898.85 | -26.35 | -0.7% |
| Nikkei 225 | 8626.97 | -9.36 | -0.1% |
| SPI Futures | 3635 | -42 | -1.1% |
| All Ords | 3,616.00 | 29.2 | 0.8% |
| Oil | 52.41 | -1.46 | -2.7% |
| Gold | 923.2 | -16.8 | -1.8% |
| Silver | 13.263 | -0.357 | -2.6% |
| 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% |
US Markets ended a good week on a negative note. The Dow closed down just under 150 points due largely to profit taking after the steep rises of the past fortnight. Leading declines were Banks and Insurers following the head of JPMorgan coming out and saying that March would not be as strong as January and February. It was fitting that the comments of JP Morgan started the profit taking as it was primarily comments from the company that started the rally when they came out and said they were profitable in the first two months of the year. Adding to the concerns about the Banking sector, was the Federal Depository Insurance Commission (FDIC) which announced the seizure of yet another regional bank on Friday, taking the tally to 21 in 2009. Also released was data about February real consumer spending which fell even further, declining 0.2%. Incomes also declined 0.2% due to wage declines.
GM was a big mover Friday night, closing up 6% on speculation that they would be given another 30 days to turn around the business.
Base metals and commodities were largely negative, Oil gave back just under 3% to close at USD 52.41 per barrel, while Gold fell USD 17 to 923 an ounce in US trading. This weakness should drag Australian miners lower this morning on the local market. Following sharp rises over recent weeks, expect to see some profit taking. Banks were broadly lower in both Europe and the US so you can also expect to see weakness in Financials. The big four were mixed on Friday, with WBC and ANZ closing lower, while CBA and NAB climbed modestly.
Oz Minerals received a rude slap to the face by the Australian government late on Friday, as they rejected the Minmetals bid in its “current form” due to the fact that the Prominent Hill copper gold mine is located in a prohibited area of South Australia. However, it is understood that an alternative proposal has been put forward for the assets with the exclusion of Prominent Hill. Barrick Gold is understood to have appointed advisers to look into the troubled miners flagship operation. Details are yet to be released.
The SPI has the market opening 37 points lower this morning.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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