* US stock markets snapped a six session winning streak, as traders took profits after an unsurprising earnings season so far.
* European stock markets capped a three session winning streak, their best since June, as Chinese and eurozone data showed a continuing slow down.
* Asian stock markets fell for a third session, after preliminary Chinese activity data reaffirmed continued weakness, with the exception of Japan.
* Commodities prices edged lower, Gold prices held at $US1,284, while crude-oil below $US102. Copper held above the key crucial US3.0c level.
The Australian share market hit fresh six year highs yesterday, as the banks continued higher, after CPI inflation figures surprised on the downside. The ASX200 rose 0.7% to 5,517, it’s highest close since June 2008. The consumer price inflation (CPI) for the March quarter came in lower than expected for at 0.6%, sending the annual rate of growth for inflation to 2.9% ( below the 3.2% forecast). Resource stocks traded modestly higher, as HSBC/Markit’s Flash Purchasing Managers Index rose to 48.3 in April (up from 48 in March), as Chinese slowed down to an eight month low.
The SPI 200 futures are up 0.4% at 5529, giving another positive lead for the ASX market today as it trades near six year highs, but there will be some profit taking too. The 5490 level key near-term for the ASX200, as markets across Europe and in the US saw profit taking overnight. The Australian dollar edged higher around the US92.9c level. Remember it is equities options settlement today, so expect a flurry of activity early.
US stock markets snapped a six session winning streak, as traders took profits after an unsurprising earnings season so far.
The three benchmark indexes eased back from around new record highs. The S&P500 capped its longest winning streak since September, after getting back into the green for the year and rising 3.5% in the past six sessions.
With the over 130 S&P500 stocks that have reported to date over 71% have beaten on profits and 51% beat on sales, while analysts are predicting profits have fallen -0.9% in the first quarter (1Q), while sales are projected to have risen by 2.6%, according to Bloomberg. Recent earnings from Yum, Dow Chemicals, Boeing and Gilead Sciences have all beaten analysts’ forecasts. There are over 40 S&P500 stocks reporting tonight, including Apple, Facebook, Qualcomm and a number of other bellwethers.
For the session Dow Jones closed down -0.1% at 16,501, the S&P500 closed down -0.2% at 1,875 and the NASDAQ closed down -0.8% at 4,126, while on 10-year Treasury notes eased to 2.70%.
European stock markets capped a three session winning streak, their best since June, as Chinese and eurozone data showed a continuing slow down.
The Europe Stoxx 600 retraced -0.4% for the session, capping a 3.2% run over the past few days. In economic news preliminary PMI eurozone manufacturing data rose to 53.3 in April, but this was tempered by the Chinese manufacturing figures which contracted for a fourth straight month.
For the session the German DAX 30 closed sown -0.6% at 9,544, the UK the FTSE 100 closed down -0.1% at 6,674, the French CAC 40 closed down -0.7% at 4,541, while the Spanish market close down -0.1% at 10,424.
Asian stock markets fell for a third session, with the exception of Japan, after preliminary Chinese activity data reaffirmed continued weakness.
The MSCI Pacific Index fell another -0.4%, after the HSBC/Markit’s Flash Purchasing Managers Index rose to 48.3 in April (up from 48 in March), as Chinese slowed down to an eight month low. Across the region the coal producers and property developers led the falls, while mining stocks were under pressure on the back of lower commodity prices.
The Chinese market found modest support, on the back of the factory activity data. The Japanese market rose, with three stocks rising for every one that fell.
For the session the Shenzhen Composite closed down -0.1% at 2,194, the Hong Kong Hang Seng closed down -1.0% at 22,509, and the Japanese Nikkei surged up another 1.1% at 14,546, while the South Korean KOSPI closed down -0.2% at 2,000.
The Dollar Index held at 79.85 on a lower Euro, and the Aussie Dollar fell below four month highs at US92.9c. Commodities prices eased.
Overnight the COMEX WTI Crude for MAY14 delivery closed up 0.1% at $US101.50, the COMEX Copper for MAY14 delivery closed down -0.1% at 3.036, the COMEX Gold for MAY14 delivery closed down -0.1% at $US1,284.
ALZ – Australand Property Group has rejected a $2.4 billion takeover offer from fellow developer Stockland.
JBH – JB Hi-Fi boss Terry Smart will retire in August after 14 years with the electronics retailer.
NCM – Newcrest Mining’s chief operating officer Sandeep Biswas will take over as the gold producer`s CEO and managing director from 4 July.
OGC – OceanaGold has suspended production at its open pit mine at the Macraes Goldfield north of Dunedin in NZ after heavy rain caused a section of the west wall to fail.
OSH – Oil Search says its key PNG liquefied natural gas (LNG) project will deliver its first cargo a few months ahead of schedule.
PDN – Paladin Energy the uranium miner, says its revenue has fallen as the price of the nuclear energy source continues to decline.
WDC – The Victorian government has struck a deal to build a new train station at a major Melbourne shopping centre.
ASX –open lower
US & UK/Europe – lower
US ADRs – Broadly higher!…
ANZ -0.5%, NAB -1.0%, NWS +1.0%
AWC -1.0%, BHP -0.4%, RIO -0.6%, NEM +3.5%
By Michael Hevern D2MX Investment Advisor For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email firstname.lastname@example.org.