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

Month: October 2013

Morning Market Update: Surprise To The Upside

Global markets resumed their winning ways overnight, with the Dow and S&P500 both posting new record closing highs.

The gains came despite a mixed batch of economic data. Retail sales surprisingly contracted in September, whilst consumer confidence slumped the most in two years this month due to the recent budget drama.

However investors chose to ignore the economic results, instead betting the Fed will hold off on adjusting stimulus this week in light of the weak data.

The Dow jumped 111 points (+0.7%) to 15680, the S&P500 put on 10 points (+0.6%) to 1772 and the Nasdaq added 12 points (+0.3%) to 3952.

There was mostly red in commodity markets, with oil logging its first losing session in four as a drop in US consumer confidence fed concerns over faltering energy demand.

Gold was also weaker, weighed down by a rebound in the US dollar. The greenback was strongest against resource-linked currencies, which were hurt collectively by the fall in commodity prices.

Our dollar slid below 95 US cents after yesterday’s speech by Glenn Stevens raised hopes of another RBA rate cut. In economic news, HIA New Home Sales are due for release at some stage today.

Morning Market Update: Surprise To The Upside is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Local Action To Drive Session

It was a lacklustre start to the trading week for global markets overnight, with most major indices logging moves of less than one tenth of a percent.

It was a choppy session on Wall Street, as investors contended with a mixed set of economic numbers. Industrial production grew more than expected in September, but that was offset by a surprise slide in pending home sales during that month.

There is more important economic data to come this week, with the Fed due to meet on Wednesday night amid expectations it will hold off on tapering stimulus until 2014.

Later in the week will see the release of the October US jobs figures, which will offer clues on just how badly the recent budget fight has damaged business hiring intentions.

The Dow slipped one point to 15569, the Nasdaq shed three points (-0.1%) to 3940 and the S&P500 inched up two points (+0.1%) to 1762.

In commodity markets, oil extended its recent gains into a third session after a news report said Libya’s oil exports have slumped to just 20% of the country’s capacity.

Front month oil futures advanced 0.9% to US$98.68 a barrel.

The greenback strengthened against its major counterparts, but its gains were limited as traders brace for the Fed’s monetary policy statement later this week.

In company news, ANZ has revealed an 11% lift in FY13 cash profit, which has come in above analyst expectations. There is no major economic data due for release today.

 

Morning Market Update: Local Action To Drive Session is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Overnight Consolidation

International markets took a breather overnight, backing off from a five session rally amid disappointing earnings out of the US.

Caterpillar provided a rude awakening for investors, slashing its full year revenue and earnings forecasts amid slumping orders from mining companies.

The mining equipment giant magnified concerns that the recent market rally has stretched equity valuations to unreasonable levels.

There were modest declines on each of the three major US indices. The Dow lost 55 points (-0.4%) to 15413, the S&P500 shed nine points (-0.5%) to 1746 and the Nasdaq let go of 23 points (-0.6%) to 3907.

Most commodities suffered heavy losses, with oil diving 1.5% to US$96.86 a barrel after data showed US crude stockpiles rising more than expected for the fifth consecutive week.

Copper was another major decliner on concerns of tighter monetary policy in China, the world’s biggest consumer of the red metal. Copper futures tumbled 2.1% to US$3.27 a pound.

With markets in risk off mode, the greenback and yen rebounded against other currencies. The Aussie was among the hardest hit, as traders reacted negatively to a spike in Chinese lending rates yesterday.

Although there is no local economic data due for release today, a key regional focus will be on the HSBC China Flash Manufacturing PMI, due for release at 12:45pm, AEDT.

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

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Morning Market Update: Quite Night, Quite Morning?

Global markets had a mixed start to the new trading week amid caution ahead of a deluge of important economic data due for release this week.

There were single digit moves in the major US indices, as investors braced for tonight’s non-farm payrolls data for September. The US jobs data was delayed for almost three weeks due to the government shutdown.

There was muted reaction to a bigger than expected drop in September existing home sales, as rising prices and borrowing rates discouraged potential borrowers.

Nonetheless, the Nasdaq achieved its fourth consecutive winning session and the S&P500 made another record high.

The Nasdaq rose six points (+0.2%) to 3920, the S&P500 put on one point to 1745 whilst the Dow slipped eight points (-0.1%) to 15392.

Oil was the big focus in commodity markets, sliding below $100 a barrel for the first time since early July after data showed a bigger-than-expected rise in weekly US crude stockpiles.

The greenback recovered some of its recent losses against its major counterparts, but a weak jobs report tonight could spark another round of dollar selling as more traders price in no change to Fed stimulus until 2014.

There is no major economic data due for release today.

Morning Market Update: Quite Night, Quite Morning? is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Multi Year Highs

US markets carried their positive momentum into the overnight session, a day after US politicians agreed to raise the debt ceiling and reopen the government.

It was a record breaking night for the S&P500, which reached a new all-time high as investors breathed a sigh of relief over the US narrowly avoiding a default.

The news wasn’t as good for the Dow, which was pressured by weak quarterly results from IBM and Goldman Sachs.

The Dow slipped two points to 15372, whilst the S&P500 rose 12 points (+0.7%) to 1733 and the Nasdaq climbed 24 points (+0.6%) to 3863.

On the economic front, US jobless claims were more or less in line with estimates, whilst manufacturing activity in the Philadelphia area region grew more than expected this month.

The key theme in FX markets was across-the-board US dollar selling, with traders now expecting the Fed will hold off on stimulus tapering amid concerns over the impact of the budget fight on the US economy.

Gold was a big mover in commodity markets, surging 3.2% to US$1323 an ounce on the Fed stimulus hopes.

Elsewhere, oil slid 1.6% to US$100.76 a barrel after a supply report showed a bigger than expected jump in weekly US crude stockpiles.

The Aussie was a standout performer against its US counterpart, surging 0.9% to 96.36 US cents – its highest level since mid-June.

The local unit is likely to be influenced today by a deluge of important Chinese economic data, including GDP and industrial production, all of which are due out at 1:00pm, AEDT.

RBA Governor Glenn Stevens is also due to make an important speech at midday today.

 

Morning Market Update: Multi Year Highs is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Through The Ceiling

There was finally some cheer on global markets overnight after US Senate leaders announced a long-awaited compromise to raise the debt ceiling and end the government shutdown.

It was night of milestones for US markets. The Nasdaq reached a 13 year high with the S&P500 only a couple of points away from its own record high.

US stocks stayed strong despite US homebuilder confidence slipping to its lowest since June amid worries over Washington’s budget fight and rising labour costs.

The Dow soared 206 points (+1.4%) to 15374, the S&P500 climbed 24 points (+1.4%) to 1722 and the Nasdaq put on 45 points (+1.2%) to 3839.

It was risk on in commodity markets, with oil rebounding 1.1% to US$102.29 a barrel as a resolution to the US debt crisis eased concerns of a hit to energy demand.

The US dollar was broadly weaker against other currencies as the proposed budget deal reduced demand for safe haven currencies.

Our dollar built on its recent gains and recently touched its highest levels against the greenback since mid-June. The AUDUSD settled up 0.3% to 95.51 at the end of US trading.

In economic news, the NAB Quarterly Business Confidence Survey is due for release at 11:30am, AEDT.

 

Morning Market Update: Through The Ceiling is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Coin Flip

The volatile ride on global markets continued overnight, this time with US markets dropping on concerns a possible debt deal will be scuttled by a rift between US politicians.

A day after markets rallied on hopes the US Senate was closing in on a deal that would raise the debt ceiling, House Republicans threatened to blow up negotiations by offering their own competing proposal.

Senate Majority Leader Harry Reid criticized the proposal, saying it had no chance of passing the Senate.

The Dow slumped 133 points (-0.9%) to 15168, the S&P500 shed 12 points (-0.7%) to 1698 and the Nasdaq fell 21 points (-0.6%) to 3794.

Across the Atlantic, European stocks managed to stay above water after German data revealed a bigger than expected rise in economic sentiment amid signs the worst of the euro debt crisis has passed.

The UK FTSE climbed 0.6% to 6549, the German DAX rose 0.9% to 8804 and the French CAC put on 0.8% to 4256.

There were losses all round in commodity markets. Oil slid to its lowest levels since early July on fears the ongoing budget fight is damaging the US economy and hurting energy demand.

Gold was also under pressure, failing to find support from safe haven flows. In currency markets, the US dollar was mixed amid continued uncertainty on whether the US will avert a default.

Oil futures slid 1.2% to US$101.21 and gold declined 0.2% to US$1273 an ounce.

The pound recovered earlier losses versus the greenback after data showed a higher than expected rise in the British inflation rate during September.

Finally, the Aussie claimed the 95 US cent handle after yesterday’s RBA minutes signalled the next rate cut may be a while off. There is no major economic data due for release today.

 

Morning Market Update: Coin Flip is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Ceiling Talks Fans Gains

Overnight, US markets began where they left off last week, eking out a modest gain amid hopes for a budget deal in Washington.

Stocks had opened with deep losses but staged a strong recovery on reports the US Senate was nearing a deal that would extend the debt ceiling until February.

A deal would still require the approval of House Republicans who could yet scuttle any agreement, which must be sealed in the next few days otherwise the US is likely to default.

The Dow rose 64 points (+0.4%) to 15301, the S&P500 climbed seven points (+0.4%) to 1710 and the Nasdaq put on 23 points (+0.6%) to 3815.

Most commodities recorded modest gains, with oil riding higher alongside equities on speculation US politicians will eventually raise the debt ceiling. Oil futures added 0.4% to US$102.41 a barrel.

The greenback weakened slightly versus some of its rivals, including the Aussie and euro. The shared currency found strength from data showing a surprise rise in eurozone industrial production during August.

Our dollar could push through 95 US cents today depending on how dovish the tone of this morning’s RBA October minutes are.

The minutes and new motor vehicle sales data are both due for release at 11:30am, AEDT.

 

Morning Market Update: Ceiling Talks Fans Gains is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Mind The Gap

Global markets ensured a positive finish to the week by notching a solid gain Friday night on hopes for a US budget deal.

US stocks opened tentatively amid a weaker-than-expected consumer sentiment read.

But the buying momentum accelerated into the close of trading amid speculation Republicans were ready to accept an increase in the debt ceiling and the reopening of government.

The Dow climbed 111 points (+0.7%) to 15237, the S&P500 rose 31 points (+0.8%) to 1703 and the Nasdaq put on 10 points (+0.8%) to 3792.

However hopes for a debt deal were dealt a blow on the weekend, after negotiations between President Obama and House Republicans broke down again.

It is now up to the US senate to make headway on a deal, which must be sealed this week otherwise the US may suffer a calamitous default.

Most commodities didn’t take part in the equity market rally. Oil dropped 1% to US$102.02 a barrel after the IAEA forecast a big increase in non-OPEC crude supply in 2014.

Gold also slumped, ending a nightmare week for the yellow metal, which plunged 3% over the five sessions as signs of a budget deal diminished safe haven appeal.

In currency markets, the greenback jumped versus the yen, as haven flows to the Japanese currency continued to ease.

Our dollar inched higher against its US counterpart, but with weekend data showing a surprise slide in Chinese exports last month, the local unit could come under pressure today.

In economic news, home loans data is due for release today at 11:30am, AEDT. The key regional focus will be on the latest Chinese CPI numbers, due out at 12:30pm, AEDT.

Morning Market Update: Mind The Gap is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Raising The SPI Ceiling

Global markets rebounded in style overnight, with the benchmark US indices surging at least two percent each as politicians inched closer to a budget agreement.

As talks between President Obama and his chief political opponent, John Boehner, continued, reports emerged of a Republican proposal to extend the debt ceiling for six weeks.

Although this encouraging development reinforces the idea that politicians are not willing to risk a US default, the two major parties still remained divided on reopening the US government.

Wall Street remained in a buoyant mood even though data showed a surprise jump in weekly jobless claims, adding to signs the economy is being squeezed by Washington’s budget fight.

The Dow soared 323 points (+2.18%) to 15126, the S&P500 rallied 37 points (+2.2%) to 1693 and the Nasdaq flew 83 points (+2.3%) to 3761.

Oil was a significant mover in commodity markets, rallying 1.4% to US$103.01 a barrel on the US budget progress and after an OPEC report revealed a drop in production last month.

There was little love for gold, which slipped 0.8% to US$1297 an ounce as the rally in equities dulled demand for the yellow metal’s perceived safety.

Among the currencies, the yen was sold off as money flowed out of safe havens. Elsewhere, the pound inched higher against the greenback as the Bank of England opted to leave its stimulus program unchanged.

There is no major economic data due for release today.

Morning Market Update: Raising The SPI Ceiling is a post from: Australian Stock Report Market Pulse Blog

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