Some positive signs emerge in the US, Australia to follow
August 30th, 2010 by Cale McCulloch
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,150.65 | 164.84 | 1.7% |
| NASDAQ | 2,153.63 | 34.94 | 1.6% |
| S P 500 | 1,064.59 | 17.37 | 1.7% |
| FTSE 100 | 5,201.56 | 45.72 | 0.9% |
| Nikkei 225 | 8,991.06 | 84.58 | 0.9% |
| ASX 200 | 4,370.10 | 14.1 | 0.3% |
| COMEX Gold - Dec 09 | 1237.9 | 0.2 | 0.0% |
| COMEX Silver - Sep 09 | 19.074 | 0.052 | 0.3% |
| COMEX Copper - Sep 09 | 336.3 | 5.85 | 1.8% |
| WTI Spot | 75.34 | 1.98 | 2.7% |
| AUD-USD | 0.8989 | 0.0122 | 1.4% |
| Aluminium | 1,996.50 | -19.5 | -1.0% |
| Copper | 7,287.00 | 220 | 3.1% |
| Lead | 2,010.00 | 73 | 3.8% |
| Nickel | 20,555.00 | 410 | 2.0% |
| Tin | 21,400.00 | 1150 | 5.7% |
| Zinc | 2,011.00 | 69 | 3.6% |
US stock markets surged throughout the session on Friday night on the back of comforting comments from Fed Chairman Ben Bernanke, who promised to do whatever it takes to support the economic recovery. He also said that the Fed had the necessary tools to avoid another recession. These comments, accompanied by a better than expected revision to second quarter economic growth was enough to see the Dow climb 200 points from its intraday low to high, closing the session out higher by some 165 points, while the S&P500 was higher by 17 points and the tech heavy NASDAQ higher by 35 points, all of which represents gains of about 1.65%.
In a sign that markets are starting to look for what could go right with the markets, investors looked for positives in a guidance cut from Intel, which rose some 1.1% for the session. Investors took the shares higher noting that it was not a surprise. The shift in sentiment towards data should help put a base under the market for now, and see us trade higher on short covering initially.
We saw some solid gains on the LME Friday night, with base metals rallying across the board, Copper was higher by 4.65%, Lead by 3.96%, Zinc by a little over 5%, Aluminum by some 1.45%, Nickel by 2.18%, while Tin surged a whopping 6.09% for the session. On top of this, Gold managed to hold on to recent gains, with Oil surging about USD 2 per barrel to close at 75.34 per barrel. This across-the-board strength will prompt buying in the resource sector domestically this morning, although the BHP trading in NY indicates an open just 17c higher than we closed on Friday night, this is also weighing on the SPI which closed the session higher by just 41 points despite the surge in US equity markets.
Domestically we have a swag of economic data due out this week to help move the markets, with retail trade, building approvals, government finance, private sector credit and housing prices due out on Tuesday, while Wednesday brings the release of GDP data. London markets are closed tonight for the end of summer holiday. As I said earlier, the SPI has us opening higher by about 41 points but I would be looking for continued strength throughout the day, indicated by the strong open on the Australian Dollar this morning, trading higher by about 0.4% as of 9.00 AM AEST.
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.