Giving you all the latest in Stock Market Information as it happens

Month: September 2013

Morning Market Update: Rocky Start Ahead

Global markets suffered further declines on Friday night, with the Dow Jones capping its first weekly drop in four due to Washington’s escalating budget crisis.

There appears to be an unresolvable standoff between President Obama and his Republican opponents, who insist that any budget deal will come only after Obama delays implementation of his health law by a year.

Washington’s budget saga now appears unlikely to be resolved by October 1, the date the US government is likely to be forced into a shutdown.

The budget woes came on top of data showing a smaller than expected rise in US consumer confidence last month and personal incomes in August.

The Dow fell 70 points (-0.5%) to 15258, the Nasdaq shed five points (-0.1%) to 3782 and the S&P500 slipped seven points (-0.4%) to 1692.

The likelihood of a government shutdown has battered sentiment this morning, with most of the major global stock futures gapping lower.

It has been a similar story in commodity markets, with oil taking a dive this morning amid concerns Washington’s budget standoff will hurt US economic growth. Oil closed down 0.6% on Friday night to US$102.87 a barrel.

The risk off environment saw gold enjoy a solid gain of 1.1% to US$1339 an ounce.

Additional support for precious metals came from comments by Fed official, Charles Evans, who suggested any scaling back of monetary stimulus could be pushed out until 2014.

The budget uncertainty and doubts over the likely start date for Fed stimulus tapering saw the US dollar sustain widespread losses against its major counterparts.

In economic news, the Melbourne Institute Inflation Gauge is due for release at 10:30am, AEST and Private Sector Credit is due out at 11:30am, AEST.

Morning Market Update: Rocky Start Ahead is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Another Lacklustre Night

Concerns over a budget standoff in Washington triggered more declines on Wall Street overnight, with the S&P500 capping its longest losing streak of the year.

Investors are growing fearful that Congress and President Obama will fail to reach a deal that will avert a government shutdown by October 1.

Moreover, little headway has been made in negotiating an increase to the US debt ceiling, which is likely to be hit in mid-October and potentially ignite a new about of financial market turmoil.

The budget drama overshadowed data showing a rebound in durable goods orders last month, signalling US businesses are tentatively looking to expand despite the fiscal uncertainty.

The Dow Jones shed 62 points (-0.4%) to 15273, the S&P500 slipped four points (-0.3%) to 1693 and the Nasdaq dropped seven points (-0.2%) to 3761.

There were more losses in commodity markets Gold tallied a third consecutive decline on concerns the Fed will stick to its guns in tapering stimulus despite the US budget uncertainty.

Bullion futures fell 0.7% to US$1318 an ounce.

A surprise rise in weekly US crude inventories contributed to a fifth straight loss in oil prices. Additional selling pressure came from a UN speech by Iran’s President, which seemingly hosed down tensions in the Middle East. Front month oil futures settled 0.5% lower to US$102.66 a barrel.

The US dollar was mostly weaker against other currencies, with the exception of the Aussie, which fell 0.2% to 93.68 US cents on speculation the RBA has room for another rate cut by the end of the year.

There is no major economic data due for release today.


Morning Market Update: Another Lacklustre Night is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Mixed Overnight

There were more declines on US markets overnight, with the Dow and S&P500 suffering their fourth consecutive losing session over the latest budget standoff in Washington.

Concerns shifted from the Fed to political posturing in Congress, after members of the Republican Party signalled their opposition to raising the debt ceiling later this year.

A failure to raise the debt ceiling has investors fearing a re-run of 2011 when Standard and Poors downgraded the US’ AAA credit rating and sent financial markets into a tailspin.

A fall in US consumer confidence further dampened the mood on markets, fuelling worries the Fed is being too hasty in tapering stimulus before the end of the year.

The Dow accelerated its declines towards the end of trading, closing 66 points (-0.4%) lower, at 15335. The S&P500 slipped five points (-0.3%) to 1697 whilst the Nasdaq rose three points to 3768.

There was little cheer for the major commodities, with oil slumping for a fourth consecutive session on the back of equity market losses and a fall in US consumer confidence.

Front month crude futures dropped 0.4% to US$103.13 a barrel.

Gold also weakened but managed to climb off the session’s lows amid uncertainty over the US budget and the looming debt ceiling fight in Washington. Bullion fell 0.8% to US$1316 an ounce.

In currency market action, the euro eased slightly after data revealed a weaker-than-expected rise German business confidence in September.

There is no major economic data due out today.

Morning Market Update: Mixed Overnight is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Uncertainty Weighs

US markets opened the new trading week with more losses overnight amid uncertainty over when the Fed will begin tapering stimulus.

Wall Street was in a downbeat mood from the get go following Friday night’s comments from two Fed Presidents, both arguing in favour of drawing down stimulus fairly soon.

It was the third losing session in a row for the Dow and S&P500, with investors also having to contend with a mixed batch of global manufacturing data.

China’s factory output expanded at a faster than expected pace in September, but that was countered by a slowdown in the manufacturing sectors of Europe and the US.

The Dow Jones shed 50 points (-0.3%) to 15401, the S&P500 slipped eight points (-0.5%) to 1702 and the Nasdaq declined 10 points (-0.3%) to 3765.

There was mostly red in commodity markets, with oil tumbling 1.1% to US$103.59 a barrel and now down around four percent over the past three sessions.

There were no safe haven flows into gold, with bullion sliding another 0.5% to US$1327 an ounce amid speculation the Fed will reduce stimulus by the end of the year.

The greenback was weaker against most of its major rivals, including the Aussie, which reclaimed the 94 US cent handle on the back of yesterday’s upbeat Chinese manufacturing numbers.

There is no major economic data due for release today

Morning Market Update: Uncertainty Weighs is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Soft Start Ahead Today

The mid-week optimism over the Fed’s decision to leave stimulus untouched came to a crashing thud on Friday night, with the Dow taking a major beating.

The blue chip index suffered its worst single session in over a month after two Fed Presidents both argued in favour of tapering stimulus fairly quickly.

Their comments directly conflicted with the Fed’s decision not to taper, sowing confusion among investors, who are again none the wiser on when central bank officials will actually begin scaling back stimulus. In company news, Blackberry shares plunged 17% after reporting a whopping $1 billion second quarter loss amid weak sales of its smartphone.

The Dow Jones slumped 186 points (-1.2%) to 15451, the S&P500 let go of 12 points (-0.7%) to 1710 and the Nasdaq dropped 14 points (0.4% to 3775. Friday night’s losses detracted from an otherwise positive week for US markets, with the S&P500 scoring a 1.3% gain over the five sessions.

There was little cheer on European markets, with the UK FTSE falling 0.4% to 6596, the German DAX declining 0.2% to 8676 and the French CAC closing down 0.1%.

Commodities mirrored the slide in equity markets, with gold tumbling 2.7% to US$1333 an ounce as traders began to price in an October start date for stimulus tapering.

Oil also closed sharply lower, pressured by the hawkish comments from the two Fed Presidents and reports of an imminent deal between the US and Russia that will eliminate Syria’s chemical weapons and avert another Middle Eastern conflict. The US dollar recovered slightly against its major rivals but was still down heavily over the week.

Our dollar slipped below 94 US cents with today’s action likely to be shaped by the latest Chinese HSBC Flash PMI reading, due out at 11:45, AEST. There is no major domestic economic data due for release today


Morning Market Update: Soft Start Ahead Today is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Analysis: Soft Start Ahead

Global markets were mixed overnight with gains in Europe countered by some weakness in the U.S.

European stocks rose to the highest level in more than five years as the Federal Reserve unexpectedly decided against slowing the pace of its monthly bond purchases.

Having missed the move higher due to the timing of the Fed announcement, European markets followed through last night with the FTSE adding 67 points (+1%) to 6625 and the DAX putting on 58 points (+0.7%) to 8694.

U.S. stocks fell after the Standard & Poor’s 500 Index rallied to a record in the previous session on the Federal Reserve’s decision to refrain from cutting stimulus as investors weighed the latest batch of economic reports.

Gold rose to a one-week high in London after the Federal Reserve maintained the pace of U.S. bond purchases, boosting demand for the metal as a store of value. Silver and palladium advanced.

Bullion for immediate delivery rose 0.2% to settle at $1,366.36 an ounce in New York. Earlier, the price reached $1,375.81, the highest since September 10.

Crude fell for the fourth time in five days as Libya’s oil output increased and Syrian President Bashar al-Assad said he will provide international inspectors access to chemical weapons facilities.

Oil for October delivery, which expires tomorrow, slid $1.68 to settle at $106.39 a barrel on the New York Mercantile Exchange, the biggest drop since September 10.

There is no major local data due out during today’s session.


Morning Market Analysis: Soft Start Ahead is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: No Surprises From The Fed

There was a sea of green on international markets overnight after the Fed shocked investors by making no change to its stimulus program. Markets had seemingly priced in the Fed making a small adjustment to its $85 billion a month worth of bond purchases.

However Ben Bernanke left the bond buying program in place, citing the slow economic recovery, tighter financial conditions and a high unemployment rate as reasons behind the decision not to taper.

Earlier in the session stocks had come under pressure following weaker-than-expected housing data for August.

However sentiment changed dramatically after the Fed’s decision, with investors sending Wall Street into a buying frenzy in the final hours of trading.

The Dow jumped 147 points (+1%) to 15677, the S&P500 climbed 21 points (+1.3%) to 1726 and the Nasdaq rose 38 points (+1%) to 3784.

European markets briefly took part in the Bernanke bounce, although gains there were relatively muted. The UK FTSE slipped 0.2%, the German DAX put on 0.5% and the French CAC added 0.6%.

There were gigantic moves in commodity markets, with gold leaping 4.5% to US$1367 an ounce as the Fed’s easy money policy looks set to roll on for at least another few months.

Oil rebounded 2.5% to US$108.07 a barrel on the back of the Fed decision and after data showed a larger-than-expected drop in weekly crude stockpiles.

The greenback was sold off across the board as the prospect for tighter monetary policy in the US was seemingly delayed by Bernanke’s dovish comments.

The Aussie was one of the biggest movers against the greenback, soaring 1.8% to 95.20 US cents – its highest level since mid-June. There is no major economic data due for release today.


Morning Market Update: No Surprises From The Fed is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Euphoria Wears Off

Global shares and bonds rallied overnight after it emerged Larry Summers withdrew his name from the race to succeed Ben Bernanke as chairman of the U.S. Federal Reserve.

Summers was a known policy hawk, and investors feared he would speed up the pace of the Fed’s stimulus withdrawal, potentially destabilising the US economy and markets.

News of his withdrawal from the Fed Chairmanship post saw European stocks close at five-year highs, with the S&P500 also coming within a whisker of reaching a new all time high.

The Dow climbed 119 points (+0.8%) to 15495, the S&P500 added 10 points (+0.6%) to 1698 whilst the Nasdaq shed four points (-0.1%) to 3718.

There were gains all round in Europe. The UK FTSE put on 0.6% to 6623, the German DAX soared 1.2% to 8613 and the French CAC jumped 0.9% to 4152.

Among the major commodities, crude oil sank 1.5% to US$106.59 a barrel – its lowest in three weeks – as concerns of a strike against Syria eased, lowering the threat of supply disruptions from the Middle East.

Elsewhere, gold arrested a five session losing streak, rising 0.7% to US$1318 an ounce on hopes the next Fed Chairman nominee will adopt a more dovish stance than Summers when it comes to monetary easing.

In currency markets, the US dollar came under pressure after data revealed the pace of growth in New York-area manufacturing unexpectedly slowed in September.

The Aussie dollar continued its run higher against the greenback, appreciating 0.8% to 0.9318 US cents.

The Aussie is likely take its cues today from the RBA’s September meeting minutes, scheduled for release at 11:30am, AEST. New motor vehicles are also due for release at 11:30am, AEST


Morning Market Update: Euphoria Wears Off is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Bullish Jump Ahead

Global market finished off the week with modest gains on Friday night as concerns over Syria subsided.

The move on Wall Street came despite rata showing weaker than expected growth in retail sales last month and a fall in consumer confidence to a five month low.

Stocks rose on hopes the Fed will slow its stimulus tapering in light of the weak economic data and as it emerged the US is considering an agreement with Russia that will avert a military strike against Syria.

The Dow climbed 75 points (+0.5%) to 15376, the S&P500 rose five points (+0.3%) to 1688 and the Nasdaq put on six points (+0.2%) to 3722.

All the action has occurred this morning, however, with index futures surging on reports known policy hawk, Larry Summers, has pulled out of the running to replace Ben Bernanke as Fed Chairman.

In the commodity space, oil slipped 0.4% to US$108.21 a barrel on the back of the weak US data and on reports of a deal being struck by the US and Russia over Syria’s chemical weapons, that would avert war.

Gold capped off a horrendous week with another loss, down 1.7% to US$1309 an ounce. The yellow metal sank almost 6% over the week amid uncertainty over the Fed’s stimulus tapering plans.

In currency markets, the US dollar recorded widespread gains on Friday but is being sold off this morning on speculation Summers’ exit has removed the threat of an aggressive scaling back of Fed stimulus.

There is no major economic due for release today.

Morning Market Update: Bullish Jump Ahead is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Big Weekend & Big Week Ahead

Wall Street ended a volatile session with a mixed performance on Friday night, as investors digested the latest reading on the US jobs market.

US stocks nosedived in the opening moments of trading following the non-farm payrolls data. The economy created 169,000 new jobs in August, less than the 180,000 forecasted by economists.

Compounding the disappointment were substantial downward revisions to the June and July employment figures.

The Dow plunged almost 150 points in the early hours of trading, with added selling pressure coming from a threat by Russian President Putin, to supply weapons to Syria’s regime in the event of a US military strike.

However, stocks recovered thereafter to finish the session almost square after President Obama appeared to make headway in gathering international support for a strike against Syria.

The Dow slipped 14 points (-0.1%) to 14923, the S&P500 was unchanged at 1655, whilst the Nasdaq eked out a one point gain to 3660.

There were some lofty gains in commodity markets. Oil surged 2% to a more than two year high of US$110.53 a barrel, amid concerns conflict in Syria will spill over into the wider Middle East region.

Gold settled 1% higher to US$1387 an ounce on the back of the Syria concerns, and as some investors questioned whether the Fed will stay the course with stimulus tapering despite the weak August jobs numbers.

In currency markets, the Aussie continued its winning run, gapping above the 92 US cent handle this morning after weekend data showed a strong rebound in August Chinese trade activity.

In economic news, the ANZ Job Advertisements Survey and Home Loans data are scheduled for release today at 11:30am, AEST.

Morning Market Update: Big Weekend & Big Week Ahead is a post from: Australian Stock Report Market Pulse Blog

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