A quiet day on the local market
November 26th, 2008 by Lawrence Grasso
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 8479.47 | 36.08 | 0.4% |
| NASDAQ | 1464.73 | -7.29 | -0.5% |
| S P 500 | 857.39 | 5.58 | 0.7% |
| FTSE 100 | 4171.25 | 18.29 | 0.4% |
| Nikkei 225 | 8323.93 | 413.14 | 5.2% |
| SPI Futures | 3639 | 20 | 0.6% |
| All Ords | 3,575.00 | 186.6 | 5.5% |
| Oil | 50.02 | -3.61 | -6.7% |
| Gold | 818.5 | -1 | -0.1% |
| Silver | 10.27 | -0.085 | -0.8% |
| Aluminium | 1751.5 | 49.5 | 2.9% |
| Copper | 3721 | 215 | 6.1% |
| Lead | 1209 | 32 | 2.7% |
| Nickel | 10555 | 674 | 6.8% |
| Tin | 12925 | 1360 | 11.8% |
| Zinc | 1215 | 32.5 | 2.7% |
The Dow Jones industrial average rose 36.47 points, or 0.43 percent, to 8,479.86 on Tuesday amid optimism that the Federal Reserve's latest $800 billion rescue package could revive the sagging housing market and free up consumer lending. The benchmark for U.S. equities drifted between gains and losses more than 20 times today as optimism about the Fed's plan was tempered by declines in computer-related stocks. Fannie Mae and Freddie Mac, the largest U.S. mortgage- finance companies which were placed under government control in September, rallied 38 percent and 18 percent respectively.
On a local front the Australian market will open flat today with a potential for resources to do well on the back of some strength from the commodities.
GOLD
U.S. gold futures ended a tad lower amid heavy volume on Tuesday as consolidation following a recent rally offset inflation concerns after the Federal Reserve unveiled plans to buy back mortgage debt.
OIL
Crude oil fell on speculation that a U.S. Energy Department report will show that inventories climbed for a ninth week as demand declined. Crude for January delivery declined 6.8 percent to settle at $50.77 a barrel.
BHP BILLITON LTD (BHP)
BHP abruptly broke off its 18-month-long pursuit of rival miner Rio Tinto, saying the recent fall in commodity prices and worsening world economy made the deal too risky to complete.
BHP said it could still pursue other mining companies weakened by the downturn, asserting that it had a "h2 balance sheet" to make a favourable deal. The proposed all-stock takeover offer which had a value of around $170 billion this past summer at the height of the commodities boom lately had fallen to about $68 billion.
BHP in its announcement also hinted at a return of funds to shareholders.
TELSTRA (TLS)
Australia's largest phone company, said it secured an A$850 million syndicated loan from five local and international banks to pay off short-term debt. Separately, Telstra's board will this morning bid to build a A$15 billion Australia wide high-speed Internet network.
Please Note...
Options expiry is this week. Please look at your positions and contact your Adviser.
We reiterate – use market strength to exit "doubtful" holdings and continue to accumulate Blue Chip companies which will recover much quicker as the market settles.
Quote of the Day
"Things are only impossible until they're not"
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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