Presented Michael Hevern
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Good Morning and Welcome to Cube Wrap on Monday, the 27th of October. I’m 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 DOW went through another rollercoaster ride on Friday night but mostly was down, which meant that more than 5% down and after a stay of trading, we actually managed to trade above those levels and down 3.6% and that was above the opening limit. We went though a 550 point range yet again and we seen 28 out of 30 days of triple digit movement and we have also seen the DOW moved down 23% for the month and we have also seen it down 15 weeks out of the last 19 and that is with a move of 32% in total down on in that duration. We saw stocks above interest to out market.
The ADRs of BHP and RIO, we saw BHP actually down on the 0.9%, RIO was up 2.6%, so we actually saw a bit of a bottom in those two stocks and we also saw the banks down with the ADRs for ANZ and NAB down 13.8% and 12.6% respectively.
We saw the gold stocks index up 4.6% and the oil stocks index down 5% after the opaque decision to cut production.
We also saw Exxon and Chevron were also down, Chevron down 4% and Exxon down 1.9%, so US steel down 2.3%.
In NASDAQ, we have seen a fall of 9% for the week. EBay and Yahoo said that they are going to cut jobs going forward and you can see there that we are at 2003 lows on the NASDAQ. We also saw the SP500 down 3.5% for the session on Friday. NASAQ was down 3% on the session.
In the UK, we saw that market down as well and I think that was pretty closer to the big move down in the US for the limit down move in the US after selling in Asia as well.
We saw the FTSE down 5% for the session, testing those 2003 lows. It is testing the week good lows there as well. That rally needs to trade up above that 4400 rally to close above that level known to indicate a bit of positivity over there. It traded close below the 4000 level and we also saw BP, Shell, and Cairn energy all down 5% and 6% over there. The big miners down Xstrata, Longman and Anglo all down to 25% and 6%. We saw the banks suffer as well. Barclays, Lloyds, and HBOS were down 23% and 9%.
Elsewhere in Europe, we saw the DAX down 5%, one of the biggest falls there was Renault, car auto makers over there are suffering quite a lot with Renault down 13% on the session, Peugeot / Citroen that was only down 1.5% and it has cut its margins going forward and also Volvo dropped 15% after it said that third quarter profit had fallen 37% on the back of weaker US demand and also good forecasts were reduced for the period of the next 12 months.
In Asia, we also saw FedEx falling there with NIKKEI down 9% for the session, the index was actually down 12% for the week and 50% for the year and biggest suppliers there were exporters and banks. The big story over there is the fact that the Yen is at its 13 years highs against both the Euro and the US dollar and that is severely affecting the exporters over there. Sony came out with a 57% fall in the annual operating profits and that is seen and also reduced their production going forward. That is seen as indicative of other companies going forward as well. We saw the NIKKEI was at April 2003 lows. I think the FTSE and the NASDAQ were both at those lows as well. Tech companies were also sold off in the Japanese market with Kyocera and Fanuc down 11% and 16% respectively. Also in Asia we saw Hong Kong down 8.3% and Chinese shares were down 2% on the session.
In the commodities market, we saw oil sold of down to 63 dollars just above 63 dollars after the bank significantly cut production by 1.5 billion dollars per day that did not help the market and it also did not help the PR relations for either.
In the gold market, the bounce there was involved right there, was down sharply on the start of the session, but they closed up sharply as the liquidation of positions seem to be abating there going forward and the precious metal being seen as a safe haven in the medium turn.
I closed at 730 with up 2% on the session over 15 dollars. So with West Texas down almost 6% closing to 4 dollars and copper down 7% on the session, lead down 1.4%, zinc down 2.8%, aluminum down 1.8%, and nickel up 7%, silver was actually down 2% as well.
On out market, I have got a chart here, in today’s chart of SPI for last 5 days and you can see there the earning grade is heading its down via critical levels today and we would need to see a turnaround in the US before we go through those levels I believe. The SPI is down 37 points over the weekend, RIO at 4 year lows and we are much hostage to what is happening in the US.
Stocks of interest in out market include who have halted retentions for their funds at the moment because of the number and quantity of retentions that are being requested there and that is also to do with the government guaranteeing the banks and not these funds for deposits.
Australian dollar had its biggest sell off it seen since it was slightly back in 83 it’s at a 5 year lows and got all the way down to around about 60 cents on the weekend and they did close up above that at the end of session.
Sun is having their AGM tomorrow. They are expected to announce the showing of the sale of their banking arm until that particular banking sector several down and prices normalized with somewhat and news in the PBL consolidated media is at James Packer is likely to step down from the PBL and has also rumors that he has been approached to putting a couple of injections into that company, which is redacted.
ASX is likely to open lower, but we for those bargain hunters out there just know that we did not have confirmation of a turn of market at the moment and we do need to make at least 3 day highs or weekly highs before we see the turnaround confirmed.
Should you have any questions about the information provided within this presentation, please call the equities and options desk or the CFD advising desk on the numbers provided, and as always trade carefully.