What a night it was...
October 9th, 2008 by Antony Ganzitti
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 9258.1 | -189.01 | -2.0% |
| NASDAQ | 1740.33 | -14.55 | -0.8% |
| S P 500 | 984.94 | -11.29 | -1.1% |
| FTSE 100 | 4366.7 | -238.5 | -5.2% |
| Nikkei 225 | 9203.32 | -952.58 | -9.4% |
| SPI Futures | 4332 | -16 | -0.4% |
| All Ords | 4,370 | -228.1 | -5.0% |
| Oil | 88.94 | -1.24 | -1.4% |
| Gold | 906.5 | 24.5 | 2.8% |
| Silver | 11.772 | 0.392 | 3.4% |
| Copper | 235.5 | -17.95 | -7.1% |
| Aluminum | 2204.75 | -40.5 | -1.8% |
| Lead | 1559.5 | -51.75 | -3.2% |
| Nickel | 12985 | -1024 | -7.3% |
| Tin | 14905 | -1307 | -8.1% |
| Zinc | 1404 | -124 | -8.1% |
What a night it was...
The Australian Dollar or should we start calling it the Aussie Peso hit 64.54 US cents, a level we have not seen since 2003, and a fall of 34% from the high of 98.49 which we hit two and a half months ago in July. Speculators have been having a field day and those short would certainly be jumping for joy, as at one stage we saw the dollar drop as much as 3 cents in 15 minutes. These type of moves are unprecedented and impact structurally on the global economy.
Central banks around the world slashed rates in unison last night. The US Federal Reserve cut their target rate from 2% to 1.5%, while China, England, Canada, Sweden, Switzerland, and the European Central Bank all cut rates in a coordinated move on global markets. Financial markets surprisingly did not act positively from this, signalling the fear of many investors that at the end of the day there is no quick fix to this global crisis we are experiencing.
Domestically speaking, the low 4000 level on the ASX/SP200 XJO index is important. We are still waiting on some type of bullish reversal and fundamental news item from the US which is going to allow us to put in a cyclical bottom, but until we see the trend is predominantly negative. Not even the globally induced rate cuts overnight were enough to spur on global markets and bring back lost confidence. The 100 basis point interest rate cut by the Reserve Bank of Australia initially looked as if it was something the market was looking for as we had rallied almost 400 points from overnight lows two nights ago. However yesterday disappointed as we broke into fresh 3 year lows yet again.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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