US Stocks Gain As Commodities Rally, Fed Discusses Stimulus
January 7th, 2010 by Katy Loi
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,573.68 | 1.66 | 0.0% |
| NASDAQ | 2,301.09 | -7.62 | -0.3% |
| S P 500 | 1,137.14 | 0.62 | 0.1% |
| FTSE 100 | 5,530.04 | 7.54 | 0.1% |
| Nikkei 225 | 10,731.45 | 49.62 | 0.5% |
| ASX 200 | 4,921.40 | 9.2 | 0.2% |
| COMEX Gold - Dec 09 | 1,137.00 | 18.3 | 1.6% |
| COMEX Silver - Sep 09 | 18.18 | 0.38 | 2.1% |
| COMEX Copper - Sep 09 | 349.5 | 8.15 | 2.4% |
| WTI Spot | 83.18 | 1.41 | 1.7% |
| AUD-USD | 0.9202 | 0.0079 | 0.9% |
| Aluminium | 2,247.00 | 21.5 | 1.0% |
| Copper | 7,436.00 | -28 | -0.4% |
| Lead | 2,440.00 | -11.5 | -0.5% |
| Nickel | 18,615.00 | -240 | -1.3% |
| Tin | 17,405.00 | -45 | -0.3% |
| Zinc | 2,526.50 | -48.5 | -1.9% |
U.S. stocks rose as higher energy and metal prices lifted commodity producers, overshadowing declines in technology and telephone shares. Federal Reserve policy makers said they would consider more stimulus measures.
The Australian dollar opened higher today after the US Federal Reserve said its target interest rate would remain exceptionally low for an extended period. In the minutes of its December board meeting, released overnight, the US Federal Reserve said it was likely to keep the nation's target interest rate at its current historic low of zero to 0.25 per cent for some time.
Gold rose to a three-week high as fresh New Year investment flows boosted commodities, and as the U.S. dollar weakened. Bullion rose to session highs above $1,140 (U.S.) an ounce as the dollar broadly fell after minutes from U.S. Federal Reserve's latest meeting showed members worried about the winding down of the central bank's massive purchase of mortgage securities to boost the nascent economic recovery.
Our market looks to open up today with the SPI futures up 10 points from yesterday’s close. Our index has been range trading between 4900 and 4945 over the last couple of sessions as it tests these new levels after breaking resistance at 4880. Over the next few weeks, 5000 may be broken as momentum builds and money flows back into the market. A continuation of the trend will see the market up to 5290 over the next month. Some selling pressure may come in at the 5000 level - this being a key psychological figure – but a significant break will see good entry levels. Data to watch out for today is retails sales for November (consensus 0.4%, previous 0.3%).
The best performing stock in the S&P/ ASX200 was Fortescue Metals Group which gained 13.04% to $5.20, a 15-month high. A rise in spot iron ore prices raised expectations for a major increase in iron ore contract prices this year.
QAN low cost offshoot Jetstar has formed a new alliance with AirAsia.
BHP has approved its share of the capital expenditure required to expand mining and processing capacity at the Antamina copper and zinc mine in northern Peru. Top banks were among the biggest losers as investors cashed in on their recent gains. Firms with overseas operations, such as CSL, slipped as the Aussie dollar climbed back above 91 U.S. cents.
WDC lost 1.7 percent to A$12.53 with a general weakness in the Property Trusts. WDC is excellent buying at these levels with the stock carrying a 47c dividend (ex early February).
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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