Resource sell-off slows market
June 4th, 2009 by Bryden Elssmann
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 8675.24 | -65.63 | -0.8% |
| NASDAQ | 1825.92 | -10.88 | -0.6% |
| S P 500 | 931.76 | -12.98 | -1.4% |
| FTSE 100 | 4383.42 | -93.6 | -2.1% |
| Nikkei 225 | 9741.67 | 37.36 | 0.4% |
| SPI Futures | 3958 | -65 | -1.6% |
| All Ords | 4,009.00 | 61.2 | 1.6% |
| Oil | 66.14 | -2.44 | -3.6% |
| Gold | 965.6 | -18.8 | -1.9% |
| Silver | 15.31 | -0.645 | -4.0% |
| Aluminium | 1443 | 2 | 0.1% |
| Copper | 4951.5 | -74.5 | -1.5% |
| Lead | 1612.5 | -15 | -0.9% |
| Nickel | 14260 | -245 | -1.7% |
| Tin | 14840 | 90 | 0.6% |
| Zinc | 1535 | -12 | -0.8% |
Wall Street
US Stocks tumbled, halting a four-day winning streak, as falling oil prices hit energy shares and dragged the market lower. The Dow closed down 65.63 points, or 0.75 percent, to 8675.24. The SP 500 lost 12.98 points, or 1.37 percent to 931.76. Oil prices slipped more than 2 percent after a surprise increase in inventories. The energy sector dragged the market lower, with Chevron off 1.6 percent and other natural resources companies and manufactures including Boeing Co down almost 2 percent.
The market has enjoyed a strong rally in the past few days, seemingly ignoring the fact that the economy is still struggling and corporate earnings are slow. The market has had a very strong move rising 10 of the last 12 weeks. Given this momentum any pullback in Wall Street is unsurprising considering the market has risen 40% off its 12 year March Low. However, improving economic news will continue to be the key for any sustained rally.
Aussie Market
Disappointing economic data coupled with a wave of profit taking on recent gains against the US currency saw the Aussie dollar slide sharply, falling back to US80 cents after reaching an eight-month peak of US82.69 .
Australian shares are set to fall from seven-month highs on Thursday after weak U.S. economic data pointed to bumps along the road to global economic recovery.
A contraction in the U.S. service sector and more job losses there could knock some of the wind out of Australia's sails after the country avoided recession with better-than-expected first-quarter economic growth.
Resource stocks could fall after a tumble in oil and metals prices on concerns over the outlook for demand, while a falling gold price could hit gold miners.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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