Presented by Michael Hevern
Cubefinancial
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Good morning and welcome to Cube Wrap for Tuesday 23rd 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 had another volatile session overnight down 3% at this time after consent of the rescue plan being proposed by the US government met with concerns by the investors. We saw there was a particular concern in detail as well the congress will actually ascertain what impact that will have on US company going forward.
We saw some news in the financial sector with Morgan Stanley selling at 26% stake to Japanese bank, Mitsubishi financial group, and it was in the order of 8.4 billion dollars and saw Morgan Stanley rise on the back of that up 9%. They were down 31% for the stage. Other news were GM had its trading cut by the Fits Group starting the liquidity access to come through capital and the fact that they moved around the 3.5 billion dollar credit facility and also cut the dividends going forward as well. S&P have held their ratings in the stage for June. Other news about the bank group was the third of the banks whole GSE stock which is the stock that the US government is going to buy back and that is a concern. US government is going to fight the bear. We saw JP Morgan, General Motors, and Bank of America giving back a lot of the gains from spike on Friday night. Short selling ban really did have the impetus or follow through with the implications that was expected and were also added to the list of financial stocks which is currently shorter in US. You can see volatility is key we saw the average volatility that was around a couple of years ago about 1%, but this month we’ve been seeing about 3% moves quite regularly in the US markets, Key indicator of a bottom forming but time will tell, it really needs to break the monthly ties to indicate change in trend for the US markets going forward.
The NASDAQ down 4%, so profit taking. Big news in the NASDAQ was the fact that Microsoft, Nike, and HP all buying back shares in the order of 53 billion dollars in total, so that should help that market going forward. We saw Microsoft was actually up 1%, Apple down 7%, and Cisco down 4.5% on the session. Other key stocks that would of interest to the Australian market, BHP and Rio up 4% and 5.5% respectively. The gold index was also up 7.5% on the session while the oil index was down 0.8%. We saw Chevron and Exxon down around about 1% and Dumont up 6% on the session. The banks ADRs were mixed with the ANZ flat for the session while NAB was down 3.5% for the session. We saw a spike in James Hardy up 8.9% on the session, so that will not be interesting for lists of stocks in our market.
On UK markets, we saw it down 1.4%, still above the 5000 psychological level there, crude prices spiked and that had an impact on these equities market in the UK. Energy stocks did gain, but there was fear of inflation worries going forward due to that spike. The biggest banks or big banks weighed on the sector with stocks falling between 4% and 6% across the board. In financials services industry, oils and energy stocks were up back of the spiking oil price with energy stocks up between 2% and 4.5% while miners were mixed with Xstrata, BHP, and Rio rising between 1.7% and 3.3% in UK market. Vodafone shed 2.6%.
In the Asian markets, we saw Japan up 1.4%, abit conservative there because the market is closed today and banks were up with Mitsubishi and financial group up 4.2%, silver up 2.9% on the session. The largest Japanese mortgage center that it is looking to invest in the Asian and European operations of investments. Honda was up 5% and the Industrial Maker was up 3.6% on the session. Elsewhere in Asia, we saw Hong Kong up 1.6% and Chinese market surged 7.7% on the session. Oil, the big news of the day, we can see there a spike over 25 dollars during the session which is a short squeeze between the change over of contracts. It was biggest game every in the oil market and we can see there what an impact it had, it will be interesting to see where that holds up because it was definitely a spike in the liquidity in the market.
The oil price actually got up to around about 130 dollars at one stage. So investors are looking to get away from the US dollar, and into commodities, we saw gold up on the back of that as well, closed above 900 dollars 992. USD had its biggest falls against Euro since the Euro came into exception and gold prices were spike in the oil price. It helped the other commodities as well with CRB index having its biggest gain since 1966. Gold was up 5% and up over 18%, copper up 2.7%, lead up 4.7%, zinc up 3.4%, aluminum up 0.4%, and nickel up 3.2%. We also saw short-covering the stock commodities well with wheat up 2.7% and corn up 3%. ASX, the SPI was down over 111 points overnight, they are set to get back into the ball game that we looked at yesterday. Look at the stocks which spiked yesterday and get back gains early and the short selling ban effectiveness that was really questionable towards the end of the day yesterday as we did see a slight decline. Still concerns up there about volatility of the market. Financials were weighing on the market today as they are the big movers in the last few days. Rio and BHP ADRs up over 3%. New Crest and Lihir are set to offer support and Newmont was up over 60% in US. Gold price up significantly as well. Energy and blue chips are likely to consolidate in this market given spike in the oil price, we are expecting to open lower this morning and we expect to see profit taking.
Should you have any questions about the information provided within this presentation, call the equities and office desk or CFD advising desk on the numbers provided and as always, trade carefully.
