RIO poised to fall
June 18th, 2009 by Cale McCulloch
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 8497.18 | -7.49 | -0.1% |
| NASDAQ | 1808.06 | 11.88 | 0.7% |
| S P 500 | 910.71 | -1.26 | -0.1% |
| FTSE 100 | 4278.46 | -50.11 | -1.2% |
| Nikkei 225 | 9840.85 | 87.97 | 0.9% |
| SPI Futures | 3922 | 25 | 0.6% |
| All Ords | 3,904.00 | -53.7 | -1.4% |
| Oil | 71.07 | 0.6 | 0.9% |
| Gold | 936 | 3.8 | 0.4% |
| Silver | 14.28 | 0.15 | 1.1% |
| Aluminium | 1562.5 | -38.5 | -2.4% |
| Copper | 4903 | -146 | -2.9% |
| Lead | 1610 | -80 | -4.7% |
| Nickel | 14650 | -300 | -2.0% |
| Tin | 14880 | -270 | -1.8% |
| Zinc | 1520 | -41 | -2.6% |
The Dow closed slightly lower last night on the back of some weakness in commodities and financials. US CPI came in lower than expected and sent the market sliding 1.3% early on. This data has halted the speculation that prices will rise quickly and stall a recovery process from gaining traction.
Base metals were mixed, with gains in Lead and aluminium, while Copper, Zinc, Nickel and Tin all fell by between 0.4 and 1.8%. The mixed metals should mean a flat day for BHP on the local market, while RIO will remain volatile following the commencement of rights trading yesterday. Something to note for anybody who has open positions in RIO, following on from the adjustments made to the stock price yesterday, contract sizes and strike prices have all been amended as of this morning. Contract sizes are 1268 shares, while the amended strike price will be equal to the previous strike price multiplied by 0.78865
New Strike price for RIO= Previous strike * 0.78865
Oil climbed just under 1% and should mean some strength in the Energy sector locally following on from a relatively flat day yesterday for the likes of Santos and Woodside Petroleum, while Oil Search gave back some of the recent gains we have seen from the sector.
The SPI has us opening down some 8 points, but the market will look for a lead from the rest of Asia as they open throughout the morning.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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