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

Month: November 2013

Modest Leads For The Bulls

It was another volatile session on US markets overnight, but this one ended with a positive outcome for the three major indices.

Wall Street returned to its winning ways after data showed a surprise drop in weekly US jobless claims to the lowest in two months.

That was followed by data showing November Chicago-area manufacturing growth beating expectations, and consumer sentiment rebounding due to an improved economic outlook among Americans.

The Dow climbed 24 points (+0.2%) to 16097, the S&P500 added four points (+0.2%) to 1807 and the Nasdaq put on 27 points (+0.7%) to 4045.

In commodity markets, oil copped another hammering after supply data revealed the tenth consecutive weekly rise in US crude inventories. Front month oil futures slumped 1.5% to US$92.27 a barrel.

Gold was also weaker, weighed down by the US dollar, which strengthened on the back of the positive consumer sentiment data. Bullion futures shed 0.3% to US$1238 an ounce.

The greenback soared to a six month high against the yen after a Bank of Japan official indicated the central bank is open to further monetary easing.

In economic news, private capital expenditure data is due for release at 11:30am, AEDT. HIA new home sales data is also due out at some stage today.

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Morning Market Update: Flat Finish

US markets were little changed at the close overngiht, with the benchmark indices held down by weak housing data.

The Dow added eight points (+0.1%) to 16073, the S&P500 slipped three points (-0.2%) to 1802 and the Nasdaq put on three points (+0.1%) to 3995.

Following a record breaking run for stocks, it was not surprising to see investors take their foot off the pedal, after data showed a surprise slump in pending home sales last month.

It was the fifth consecutive month where pending home sales have contracted, stoking concerns the housing market recovery is losing steam amid rising interest rates.

The landmark agreement to curb Iran’s nuclear program led to further losses in oil, with traders anticipating a future deal will eventually allow the nation to begin exporting crude.

Gold also came under pressure as the Iranian deal diminished the precious metal’s appeal as a safe haven investment.

Front month oil futures lost 0.7% to US$94.17 a barrel and gold futures declined 0.2% to US$1241 an ounce.

There was not a great deal of action in currency markets, with the US dollar rising modestly against its major counterparts as speculation mounts the Fed will soon announce plans to curtail stimulus.

There is no major economic data due for release today.

 

Morning Market Update: Flat Finish is a post from: Australian Stock Report Market Pulse Blog

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Aussie Shares Fall Flat

AUSTRALIAN shares were flat on the back of the deal between Iran and key western powers to halt its nuclear program hit the big miners.

Iran and six world powers have in principle reached an interim agreement that would roll back parts of Iran’s nuclear program. In exchange, some of the tough economic sanctions against Iran will ease.

The accord to last 6 months, reached in Geneva on Sunday (European time), is hitting gold and oil prices, Australian Stock Report senior equity analyst Benny Sada says.

“It’s diminished the safe-haven appeal of commodities like gold. It’s also boosted expectations that we’re going to get an increase in crude supply in the next six to 12 months,” he said.

Diversified miner BHP Billiton lost 16 cents to $37.73, Rio Tinto shed 51 cents to $64.89, iron ore miner Fortescue dropped eight cents to $5.74 and gold miner Newcrest gave up four cents to $8.22.

The major banks, Westpac lifted 26 cents to $32.78, ANZ gained 10 cents to $31.89, CBA rose 32 cents to $76.59 while NABwas up 6.5 cents at $34.165 as investors assessed the prospect of another RBA interest rate cut.

“I would put that down to just more expectations for another RBA interest rate cut,” Mr Sada said. Meanwhile, Telstra fell one cent to $5.07.

On US markets, the Dow Jones Industrial Average lifted 7.8 points to 16,072 overnight, a fresh all time high, but the broader the S&P 500 lost 2.3 points or 0.13 per cent.

The weak lead from Wall Street had led to curtailed gains on the local market, Mr Sada said. “Our market’s flat on the back of that.”

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Australian Shares Close Higher

Australian shares showed gains today after continued positive momentum on Wall Street. Australian Stock Report analyst Benny Sada was quoted on Sky News as saying the local market built on early gains before declining slightly.

‘Our market has opened stronger on the back of Wall Street gains on Friday night and the gains have been widespread today,’ Mr Sada said. ‘Health care stocks and the telcos have led the charge but all the other sectors have enjoyed gains today.’

He said there had been some profit taking towards the end of the day.

In US market on Friday, the SP 500 index closed the day above 1,800 points for the  first time, while the Dow Jones Industrial Average was up to another record of 16,064.77 points.

in local markets, Telstra was up two cents to $5.08 while Sonic Healthcare was a clear standout in the health sector, gaining eight cents, or 1.7 per cent, to $4.88.

In the banking sector, National Australia Bank added 18 cents to $34.10, ANZ gained 11 cents to $31.79 and Westpac was two cents higher at $32.52. Commonwealth Bank dropped 22 cents to $76.27.

in the resources sector, BHP Billiton was six cents higher to $37.89, Rio Tinto up 12 cents to $65.40 and Fortescue Metals rose four cents to $5.82.

Warrnambool Cheese and Butter added another 18 cents to $9.23 after Canadian dairy company Saputo said it would lift its takeover offer to $9.20 per Warrnambool share, if it attains a stake of more than 50 per cent.

Rival bidder Bega Cheese dropped four cents to $4.67. At the close on Monday, the benchmark SP/ASX200 index was up 15.8 points, or 0.3 per cent, at 5,346.1.

The broader All Ordinaries index was up 16.9 points, or 0.32 per cent, at 5,352.8.

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Morning Market Update: All Signs Point To Big Day For Bulls

US markets snapped their losing streak overnight, with the Dow Jones closing above the key 16000 level for the first time.

The renewed optimism on Wall Street came after data showed a bigger-than-expected decrease in weekly US jobless claims.

A surprise jump in US manufacturing activity this month further fuelled risk appetite, and allayed concerns of a threat to economic growth from a reduction in Fed stimulus.

The Dow soared 109 points (+0.7%) to 16010, the Nasdaq climbed 48 points (+1.2%) to 3969 and the S&P500 put on 15 points (+0.8%) to 1796.

Most commodities strengthened, even though data yesterday revealed a surprise slowdown in Chinese manufacturing growth in November.

Oil soared 1.4% to US$95.16 a barrel as the drop in US jobless claims brightened the outlook for energy demand.

Conversely, gold slid 1.1% to US$1244 an ounce as traders price in either a December or January start date for Fed stimulus tapering.

The potential for an imminent reduction in the Fed’s monthly bond buys, combined with improving economic data, saw money flow into the US dollar.

The greenback was strongest against the yen and Aussie, with the latter taking a hit from yesterday’s comments from Glenn Stevens, in which he flagged the possibility of currency intervention in order to weaken the dollar.

There is no major economic data due for release today.

 

Morning Market Update: All Signs Point To Big Day For Bulls is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Soft Start Ahead

Global markets weakened slightly overnight, although trading was fairly choppy given the lack of economic catalysts.

The Dow Jones broke through 16000 for a second time, but couldn’t build on its gains, as traders looked to take profits after the blue chip index’s recent run higher.

Sentiment was not helped by disappointing earnings from retailer Best Buy, whilst other investors were content to remain on the sidelines ahead of a speech by Ben Bernanke later this morning.

The Dow slipped nine points (-0.1%) to 15967, the Nasdaq dropped 17 points (-0.4%) to 3932 and the S&P500 let go of four points (-0.2%) to 1788.

In commodity markets, oil edged up 0.4% to US$93.36 a barrel.

Traders were cautious ahead of a crucial meeting between Iran and the West over its nuclear program, which may see trade sanctions against the rogue nation eased.

The US dollar was mostly weaker against other currencies, as traders look to Bernanke’s speech today for clues on when the Fed will begin tapering stimulus.

In economic news, the Melbourne Institute Leading Index is due for release at 10:30am, AEDT.

 

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

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Morning Market Update: Positive Start

It was another night of milestones for US markets on Friday night, with the S&P500 and Dow each claiming new record highs on hopes for a continuation of Fed stimulus.

Benchmark US indices logged their sixth consecutive weekly gain, the longest such winning streak since February. The advance came despite a raft of economic data that underwhelmed expectations.

A measure of New York area manufacturing activity surprisingly contracted this month, coinciding with data showing a contraction in American industrial production during October.

Investors looked past the weak data, which has only boosted speculation the Fed will delay when it begins reducing stimulus, perhaps not until after policy dove Janet Yellen, is sworn in as the next head of the Federal Reserve.

The Dow rose 86 points (+0.5%) to 15962, the S&P500 added seven points (+0.4%) to 1798 and the Nasdaq put on 13 points (+0.3%) to 3986.

The prospects of Janet Yellen extending the Fed’s monthly bond buying program saw gold edge higher, and notch its first weekly gain in two. Bullion added 0.1% to US$1287 an ounce.

The move in gold prices coincided with a drop in the US dollar against other currencies. Sentiment towards the greenback has taken a negative turn following Yellen’s testimony in which she argued in favour of stimulus.

Gold’s strength stood in contrast to oil, which suffered its six consecutive weekly loss – the longest stretch of declines in about 15 years. Crude futures climbed a modest 0.5% on Friday night, to US$94.19 a barrel.

Crude has been battered by data showing ongoing increases in US oil inventories, without a corresponding increase in demand.

There is no major economic data due for release today.

 

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

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Morning Market Update: Positive Start Ahead

Wall Street continued its momentum into a second session overnight, as Janet Yellen’s testimony to Congress soothed fears about an end to quantitative easing.

Yellen fronted the US Senate for her confirmation hearing yesterday, where she outlined her reasons for continuing quantitative easing.

Early indications are that she will be sworn in as the next chairwoman of the US Federal Reserve once Ben Bernanke’s term expires at the end of January next year.

Stocks remained higher despite data showing little change in weekly US jobless claims and a smaller than expected rise in labour productivity during the third quarter.

The Dow rose 54 points (+0.3%) to 15876, the S&P500 climbed nine points (+0.5%) to 1791 and the Nasdaq put on seven points (+0.2%) to 3973.

Gold was a major beneficiary of Yellen’s testimony, particularly her comment that it was important not to remove monetary support in light of the fragile economic recovery.

Elsewhere, oil was held down by data showing an eighth consecutive weekly increase in US crude stockpiles.

Bullion soared 1.4% to US$1269 an ounce and front month oil futures ticked up slightly to US$93.90 a barrel. In currency markets, the US dollar held onto its recent gains despite mounting speculation Yellen will continue with the Fed’s easing policies.

There is no major economic data due for release today.

 

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

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Morning Marketing Update: Yellen To The Rescue

U.S. markets bounced back overnight on hopes Janet Yellen will continue the Fed’s easy money policies if she is confirmed as the next Chair of the central bank.

Yellen is due to front the US Senate for her confirmation hearing later this morning, and the expectation is she will outline her reasons for continuing quantitative easing.

Both the Dow and S&P500 reached new record highs, with retailer Macy’s providing a further boost to sentiment after revealing stronger-than-expected earnings.

The Dow Jones climbed 71 points (+0.5%) to 15822, the S&P500 added 14 points (+0.8%) to 1782 and the Nasdaq jumped 46 points (+1.2%) to 3966.

In commodity markets, oil clawed back some of its recent heavy losses but gains were capped by fears tonight’s data will reveal further increases in weekly US crude stockpiles.

Front month oil futures advanced 0.8% to US$93.76 a barrel whilst gold weakened 0.2% to US$1268 an ounce.

The U.S. dollar strengthened last night, but has come under pressure this morning as traders react to the dovish tone of Yellen’s prepared remarks to Congress.

In economic news, the Melbourne Institute inflation expectations index is due for release at 11:00am, AEDT, whilst new motor vehicles sales data is due out half an hour later.

Morning Marketing Update: Yellen To The Rescue is a post from: Australian Stock Report Market Pulse Blog

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Morning Market Update: Strong Start Ahead

Wall Street ensured a positive finish to the week by notching a healthy gain Friday night, as a pickup in American jobs growth eased fears over the US economy.

Following a tentative start, US stocks picked up the pace after data revealed the economy added a bigger-than-expected 204,000 jobs in October. The September jobs figures were also revised up slightly.

Despite the jobless rate rising to 7.3%, and other data showing US consumer sentiment dropping to its lowest since December 2011, the October job gains appeared strong enough to bring forward the start date for stimulus tapering.

The renewed wave of optimism over the economy propelled the Dow Jones to another record high and saw the blue chip index log its fifth consecutive weekly gain.

The Dow soared 168 points (+1.1%) to 15762, the S&P500 put on 24 points (+1.4%) to 1771 and the Nasdaq added 62 points (+1.6%) to 3919.

With markets firmly in risk on mode, gold was slammed on expectations the Fed may make a move on tapering as early as December. Bullion prices slid 1.9% to US$1285 an ounce.

Oil was up modestly, but its gains were capped by the weak consumer sentiment read and other data showing US personal spending growth surprisingly falling in September.

The US dollar was resurgent against a number of other currencies, including the Aussie, which was hurt by Friday’s RBA monetary policy statement, which seemingly increased the likelihood of another rate cut.

In economic news, home loans data is due for release at 11:30am, AEDT.

 

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

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