US Stocks Eased
November 5th, 2009 by Katy Loi
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 9802.14 | 30.23 | 0.3% |
| NASDAQ | 2055.52 | -1.8 | -0.1% |
| S P 500 | 1046.5 | 1.09 | 0.1% |
| FTSE 100 | 5107.89 | 70.68 | 1.4% |
| Nikkei 225 | 9844.31 | 41.36 | 0.4% |
| ASX 200 | 4,540 | 8.6 | 0.2% |
| COMEX Gold - Dec 09 | 1087.3 | 2.4 | 0.2% |
| COMEX Silver - Sep 09 | 17.405 | 0.225 | 1.3% |
| COMEX Copper - Sep 09 | 299.3 | 3.7 | 1.3% |
| WTI Spot | 80.4 | 0.8 | 1.0% |
| AUD-USD | 0.9108 | 0.008 | 0.9% |
| Aluminium | 1870 | 1 | 0.1% |
| Copper | 6395.5 | -77.5 | -1.2% |
| Lead | 2250.5 | -9.5 | -0.4% |
| Nickel | 17805 | -365 | -2.0% |
| Tin | 14700 | -200 | -1.3% |
| Zinc | 2146 | 1 | 0.0% |
U.S. stocks erased most of a 156-point rally in the Dow Jones Industrial Average after a House bill to curb credit-card rates spurred concern about bank earnings, outweighing the Federal Reserve’s plan to keep interest rates at a record low. The Federal Reserve restated its intention to keep interest rates “exceptionally low” for “an extended period” as long as inflation expectations are stable and unemployment fails to decline. Crude oil rose after a government report showed that U.S. inventories unexpectedly dropped as imports declined to a two-month low. Stockpiles of crude oil fell 3.94 million barrels to 335.9 million last week, the Energy Department said today. A 1.5 million-barrel gain was forecast, according to the median of responses in a Bloomberg News survey of analysts. Gold also advanced as equities gained and a weaker U.S. dollar bolstered the appeal of commodities as an alternative investment.
Gold futures surged to record highs above $1,090 an ounce Wednesday as the dollar sold off and buyers piled onto the precious metal's recent rise amid bets the Federal Reserve would maintain its ultraloose monetary policy. After settling with modest gains, gold futures perked up in electronic trade after the Fed released its statement, repeating that economic conditions "are likely to warrant exceptional low levels of the federal funds rate for an extended period." It kept rates near zero percent. The Australian dollar recovered from lows on Wednesday as some investors hurried to buy after a sharp drop in the wake of disappointing retail sales data. Despite Wednesday's weak retail sales report dimming the chance of an interest rate rise in December, traders said demand for the Aussie stayed firm. The Aussie rebounded to $0.9022, from a low of $0.8980 after data showed retail sales performance eased 0.2 percent. That confounded forecasts for a 0.4 percent gain.
SPI futures finished up 23 points this morning. With a strong selloff in the last hour of trading, our market looks to open around 4540; could see an initial rally to test 4580 resistance on the back of oil and gold strength. Banks may rise after Westpac Banking Corp's upbeat earnings report on Wednesday. Retailer David Jones will release its first-quarter sales report today, while contractor Leighton Holdings holds its annual meeting. The market seems undecided on direction and struggles to break 4580 with support at 4510. We may see a tight trading range today ahead of ECB and BoE’s interest rate decisions which are out tonight. Other data to watch for is initial jobless claims in the US. In our time zone, Australia’s trade balance will be released and RBA’s Governor Stevens Speech out after market.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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