Presented by Michael Hevern
Cubefinancial
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Good morning and welcome to Cube Wrap for Monday the 22nd of September. I am Michael Hevern for Cube Financial.
The information provided within this presentation is general advice only and you should consult the services of a financial professional in order to ascertain whether the information is applicable to your investment strategies and risk profile. Again, it is general advice only.
Well, the Dow continued its recovery on Friday night up another 4% after the US government handed down a bailout package in the order of 1 trillion dollars and 800 billion dollars set aside to accommodate the toxic mortgage issues that are prevailing in the US and also another 400 billion dollars put aside to insure the market money funds. So that there is continued liquidity in the market.
There was a ban on short selling which helped all the financials and we saw the biggest 2-day gain in 20 years. The index was down 0.3% for the week and down 14% here to date that would be loss with 1000 point trading range that was sold off during last week.
In the NASDAQ we saw that recovered 3.4% up 0.6% for the week. You can see that it is fairly strong there even though there was great support last week and we are back into middle higher than the trading range that we see that prevail this year. In the US stocks AIG which was up 43% which is placing AIG in the day up 3.7 on Friday and it was up 5% for the week.
Other big movers in the US included the gold stocks index which was up nearly 4% and the oil stocks index up almost 8% on Friday. We saw Newmont up 5.5%, BHP and Rio up 9% and 14% respectively and we also saw the steel stock up 9.5% and US steal up. Energy stocks were also up Exxon up 2.4% and Chevron up 6% on the session, so pretty good price move there. It was up two for every one declined. We saw SP500 up 4.03% as well for the day.
In the UK, we saw that market have its biggest one-day gain ever since the session which was back about 24 years ago, up 8.8% on the session above the 5000 level, 5000 to 5300. Again, there is story about financials surging with all banks. All banks up between 17% and 32% with Lloyds up 20% and again over there, there was a ban on short selling for the financials. Insurance stockholders have recovered substantially as [well as prudential and mutual levels between 11% and 23% on the session.
The energy stocks also had a good day with BG, Shell, and BG group all up around between 6% and 12% on the session. Retailers did have a pretty good week last week, continue their games and up another between 6% to 12% Friday night.
Across in Europe, we saw the European shares with DAX up 5.6% and the CAC up 9% on the session. The move on the CAX was up the biggest gain in 20 years and the Volkswagen which was sold down and we saw the Nikkei up 3.7%. It looks like it is set to bounce off that support level there. We saw the banker and exporters recover substantially as the dollar appreciated against the Yen.
We saw Mitsubishi and Sumo up around that 9.5% on the session and exporters such as Canon up 8.6% and it the Industrial make Fanuc up 12% on the session. Elsewhere in Asia, we saw Hong Kong put on 10% and Shanghai similarly 9.5%, fairly good price bounced across all world markets.
Oil up above the 100-dollar mark, shifting around the 103-dollar mark there. You see that critical level is 100 dollars and hope that is can hold that so it is same around there, but we have broken that down in line which has prevailed for the last 3 weeks looking for support there. On the Gold front this was around 900 dollar last week and settled down around 880 dollars at the end of the weekend.
Base metals were up on the free end as well with copper up 4.6%, lead up 5.3%, zinc up 3.8%, aluminum up 1.6, and nickel up 1.3. We also saw lot of the commodities up around about the 3% mark this week, up 3.6 and going up 2.8%.
On the ASX, we set for further recovery there the SPI was up over 133 points and you can see there we did raise for the last week since the holding above that at the start of this week. The big story will be the ban on short selling on the bankers and insurers. Stock with RIO and BHP up substantially in the ADRs. It was up 9% and 14% respectively so we should see a bounce there as well.
The gold stocks should hold there own and Newcrest and Lihir should at least consolidate. We did see Newmont up 5.5% so that’s a good lead for those stocks, energy stocks should be bound by the higher oil price and we will be interested to see Macquarie continuing to recovery it has recalled a lot of it’s stock that has been out there for short selling so we should see a sustained move there. We will definitely open higher today and you will expect to see some market changes especially in the insurers and banks.
Should you have any questions about the information provided within this presentation, please call the equities options desk or the CFD advising desk on the numbers provided, and as always trade carefully.
Tags: BHP, Dow, Macquarie, Nasdaq, share price
