World Eyes On China
September 1st, 2009 by Cale McCulloch
Closing Data
| 9496.28 | -47.92 | % | |
|---|---|---|---|
| NASDAQ | 2009.06 | -19.71 | -1.0% |
| S P 500 | 1020.62 | -8.31 | -0.8% |
| FTSE 100 | 4908.9 | 0 | 0.0% |
| Nikkei 225 | 10492.53 | -41.61 | -0.4% |
| 0.0% | |||
| US Bond 10 Yr | 3.4017 | -0.0499 | -1.4% |
| US Bond 30 Yr | 4.178 | -0.017 | -0.4% |
| 0.0% | |||
| COMEX Gold - Dec 09 | 953.5 | -5.3 | -0.6% |
| COMEX Silver - Sep 09 | 14.898 | 0.114 | 0.8% |
| COMEX Copper - Sep 09 | 280.8 | -11.5 | -3.9% |
| WTI Spot | 69.96 | -2.78 | -3.8% |
The US markets were shaken last night, from the aftershocks of an Asian sell off yesterday that saw the Shanghai Composite index close down 6.7%. The Dow Jones Industrial Average fell 47 points, or 0.5% while the S&P 500 gave back 0.8% to close at 1020. Investors looked to reduce exposure to some of the riskier financials that are viewed by many to have run too hard to fast, including the likes of Citigroup and AIG. All in all it was an overall unwinding of some risk positions that dragged the market lower.
The oil price was the biggest weight on sentiment last night, as it gave back USD 2.78 a barrel or 3.8%, to close at $69.96 per barrel. The weakness weighed on the big Oil companies. This should flow through to further weakness locally for the big oilers like Woodside Petroleum and Oil Search this morning.
Steel makers retreated on the back of Chinese weakness. Blue Scope Steel and One Steel could be lower this morning. The London Metal Exchange was closed overnight, as was the London Stock Exchange, for a Bank Holiday, which left the big miners with little guidance in terms of metal pricing. That said, BHP looks like opening 13c higher than its domestic close at $38.93 according to the ADR trading in New York.
The Australian market will be looking for some direction from the Asian Markets as they open throughout the morning, following on from the steep declines they suffered yesterday, along with the RBA rate announcement later this afternoon with rates likely to remain on hold at 49 year lows of 3%.
The SPI futures have us opening lower by 10 points this morning.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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