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.

EURUSD weak ahead of Bernanke's speech

The Australian equity market is set for a mixed start on Tuesday after US stocks registered slight gains overnight in another choppy session as bargain-hunting investors scrounged for buying opportunities after four straight weeks of sharp losses.

The Dow finished up 37 points to close at 10854.65, after dropping 4.01% last week and 15% throughout the four-week losing skid. Trading was volatile. The Dow advanced as much as 203 points early in the session, but pared gains throughout the morning and almost turned negative before bouncing back. The S&P500
index edged up 0.29 point to finish the session at 1123.82.

EURUSD weakened from highs of 1.4435 to trade at lows of 1.4356 overnight as currency traders moved to protect themselves from the risk that Federal Reserve Chairman Ben Bernanke will signal additional steps to bolster the US economy.

Gold touched a new high at $1,911.54 per ounce early in Asian trading, having settled at a record high in the U.S. session on continuing strong demand amid broad worries about the global economy and growing speculation the U.S. won’t be able to resist another round of stimulus.

WTI crude traded as high as 84.83 overnight to pull back and settle at 84.42 as traders tamped down expectations for a quick resumption of Libyan crude exports.

Source
Bloomberg, Dow Jones News

DOW finishes the week down

The Australian equity market is set for a mixed start to the week after US stocks closed lower Friday and notched their fourth straight losing week, as investors continued worrying about a potential global recession and the health of the European banking system.

The Dow (see above chart)  closed down 172.93 points to finish at 10817.65. The index swung 284.99 points from its session highs to the lows in another volatile session. The zigzag action comes after the blue-chip index tumbled 419.63 points Thursday. The S&P500 index dropped 17.12 points to close at 1123.53, led lower by technology and financial stocks. All 10 of the S&P 500′s sectors closed in negative territory. The index has tumbled 16% over its four-week losing skid.

USDJPY has had a volatile session trading up from lows of 75.95 to highs early in the Asian session of 76.88 after a Japanese news paper reported Japan’s government and central bank are prepared to intervene in the market this week if the nation’s currency continues to strengthen.

USDCHF finished the week trading down from highs of 0.7967 to lows of 0.7803 as rumors continue to swirl that the SNB are looking to peg its currency or at least narrow its trading range to a specific band against the euro to weaken the franc.

Gold once again reached new height on Friday night trading above 1880.00 per ounce as investors look to the metal as a safe haven.

Source
Bloomberg, Dow Jones News

Dow tumbles on European debt

The Australian equity market is set for a weak open after the overnight Australian futures dropped over two percent US stocks tumbled amid growing fears of a global recession, as investors confronted a grim mix of U.S. economic data and fresh concerns about Europe’s banks.

The Dow (see above chart) ended down 419.63 points to close at 10990.58 while S&P500 index dropped 53.24 points to finish the trading session at 1140.65.

On the economic front, factory activity in the Mid-Atlantic region plunged its worst level since Mar 2009, according to the Philadelphia Federal Reserve Bank. And adding to the woes, sales of existing homes fell in July to a seasonally adjusted annual rate of 4.67 million homes.

This led to investors hunting for safe-haven currencies with the Swiss franc, yen and dollar all strengthening against the riskier euro and commodities based currencies such as the CAD and AUD.

The AUDUSD has traded down from yesterday highs of above 1.0550 level to recent lows of 1.0330.

Gold rallied to another all time high overnight, trading as high as 1829.80 per ounce as equities tumbled prices are set for an 11th straight annual increase and has jumped more than $900 an ounce since the end of 2008.

WTI crude oil  tumbled 5.9% Thursday and in continuing to weaken during the Asian session as weakening economic data in the U.S. sparked renewed fears of a global downturn. Declines across financial markets
has sent oil as low as $81.12.

Source
Bloomberg, Dow Jones News

EURCHF volatile overnight

The Australian equity market is set for a flat start to the day after the US stocks were mixed as investors weighed earnings from some high-profile retailers against signs of rising input costs and continued dissatisfaction over efforts to find a solution to Europe’s debt woes.

The Dow Jones inched up 4.28 points to close at 11410.21, after gaining 124 points early in the session while the S&P500 index gained 1.13 points to finish at 1193.89.

The Swiss franc extended its gains against both the euro and dollar after the Swiss National Bank came out with a plan to stymie the franc’s rise, which failed to satisfy investors who were expecting more aggressive measures. EURCHF (see above chart) traded down from highs of 1.1550 to as low as 1.1222 early in the European session. At
time of writing this report it was trading at 1.1402.

The AUDUSD traded up from lows of 1.0450 to as high as 1.0600 last night as markets saw some strength, only to pull back when the equity market reversed.

WTI crude oil traded up from lows of 86.83 early in the European session to as high as 89.00 overnight after an industry report showed a bigger-than-expected drop in U.S. gasoline inventories only to pull back and settle at 87.54.

Gold finished the session at record highs of 1790 as reports that Venezuela plans to nationalize its gold industry gave futures a late-afternoon boost.

Source
Bloomberg, Dow Jones News

EURUSD weakens after meeting

The Australian equity market is set for slightly weaker open this morning after US stocks fell Tuesday evening, snapping a three-day winning streak, as investors expressed disappointment over proposed measures from European officials to strengthen euro-zone fiscal governance.

The Dow dropped 76.97 points to finish at 11405.93 while the S&P500 index lost 11.73 points to close at 1192.76.

The EURUSD (see above chart) traded off from highs of 1.4475 after the German Chancellor Angela Merkel and French President Nicolas Sarkozy meet to discuss the regions sovereign debt crisis, The initial euphoria around the leaders comments waned as it became clear that there not going to issuance of euro bond buying.

USDCHF traded up from overnight lows of 0.7774 to reach as high as 0.7979 after a US report was released showing industrial production climbed by the most this year, bolstering optimism for global growth and lessening demand for the safest currencies.

The NZDUSD has continued to weakening after the New Zealand government released data showing that produced goods and services were up 1.4 percent on quarter.

Gold rose from overnight lows of 1766 to finish the session at 1787 after the sagging European economy spurred demand for the precious metal.

WTI oil advanced overnight from a two day low as investors back that shrinking stockpiles and rising factory output in the US indicate fuel demand will increase in the USA.

Source
Bloomberg, Dow Jones News