Dow weak in US session

The Australian equity market is set for a soft start to the last session after the US stocks dropped Thursday after three days of sharp gains as Warren Buffett’s $5 billion investment in Bank of America failed to stoke investors’ appetite for risk ahead of Federal Reserve Chairman Ben Bernanke’s speech Friday.

The Dow (see above chart) dropped 170.89 points to finish the session at 11149.82 while the S&P500 index lost 18.33 points to close at 1159.27. The index is currently down 10% this month.

GBPUSD weakened overnight to lows of 1.6260 after an industry report showed that consumer confidence dropped in July, fueling concern the economic recovery is faltering.

The Swiss franc weakened against the dollar after Berkshire Hathaway agreed to invest in Bank of America, reducing concern that another financial crisis may be brewing. At time of writing this report it was trading at 0.7935.

The yen fell against most of its major counterparts as a decline in bets that Ben Bernanke will signal new stimulus measures fueled demand for the safety of US treasuries. USDJPY traded as high as 77.70 late in the US session.

Gold rebounded in overnight trade to finish the session at 1772.50 per ounce halting the biggest decline since 2008, as slumping global equities revived the appeal of the precious metal as a safe haven.

WTI crude declined from highs of 86.57 to as low as 83.00 as investors predict that a report out in the US  tonight will show that the economy grew at a slower pace in the second quarter than previously estimated.

Source
Bloomberg, Dow Jones News

Gold weak

The Australian equity market is set for a strong start to the day after US stocks gained for a third straight day overnight as a positive durable goods report set a encouraging tone while investors await Ben Bernanke’s highly anticipated speech later this week.
The Dow gained 143.95 points to finish the session at 11320.71, the index has surged nearly 5% this week while the S&P500 index gained 15.25 points to close at 1177.60.
USDJPY found some strength during the US session trading up from lows of 76.48 to trade as high as 77.10 as traders took in information about the new $100 billion fund set up to discourage further gains in the yen and the downgrade by Moody’s Investors Service of Japan’s sovereign credit rating to Aa3.
The NZDUSD has had a reasonably muted response to the government report showing that retail sales rose 0.9 percent in the second quarter.
Gold (see above chart) dropped $104 in the US session to lows of 1,745 per ounce on speculation that the financial markets may be stabilizing and the CME increasing the margin of the futures contract by over 20 percent.
WTI crude oil traded as high as 86.60 after the government said US oil stockpiles fell last week only to drop to lows of 84.73 in the last 15 minutes of open outcry trading.

INDICES
Last Traded
SPI 200 future 4211
S&P500 Index 1177.60
Dow Jones 11320.70
FTSE 100 Index 5205.5

COMMODITIES
Last Traded
Gold 1753.60
Oil (Nymex) 85.21

CURRENCIES
Last Traded
AUDUSD 1.0469
EURUSD 1.4414
GBPUSD 1.6367
USDJPY 77.02

Source Bloomberg, Dow Jones News

Dow 30 strong on stimulus Hopes

The Australian equity market is set for a solid open Wednesday after US stocks surged overnight as another dose of bleak economic data raised hopes that the Federal Reserve will take additional measures to stimulate the economy.

The Dow (see above chart) rose 322.11 points to finish 11,176.76. The steep gains were disturbed momentarily by a magnitude 5.8 earthquake centered in Virginia. Tremors were felt on the East Coast, through Washington, D.C., and up to New York City. But the earthquake failed to rattle investors, as stocks climbed in the final trading hour.

The S&P500 index rose 38.53 points to close at 1162.35. All 10 of the S&P 500′s sectors finished in positive territory.

Another round of dismal economic reports prompted hopes that Federal Reserve Chairman Ben Bernanke will employ more accommodative measures to boost the economy. The Richmond Fed’s regional manufacturing survey showed sharply declining economic activity this month. New home sales also dropped for a third straight month and fell to the lowest level since February.

The AUDUSD traded up from overnight lows of 1.0444 to highs 1.0536 on prospect that Asian stocks will continue to rally, boosting demand for the higher yielding currencies.

The Swiss franc weakened against most of its major counterparts overnight with the USDCHF trading up from lows of 0.7853 to as high as 0.7934 recently.

Gold prices retreated from records highs of 1,911 an ounce to settle at 1830,but the precious metal is still on track for its biggest one-month gain since
Sept. 1999.

WTI Oil climbed for a third day to settle at 85.51 as investors gambled that the shrinking US crude supplies indicate that fuel demand will increase in America.