Presented by Michael Hevern
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Good Morning and Welcome to Cube Wrap for Tuesday the 28th 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 financial professional in order to ascertain whether the information is applicable to your investment strategies and risk profile. Again it is general advice only.
The DOW had a sell off in the last half hour’s trading down 200 points even for 5 minutes at one stage closing down 2.4% on the day. It went through another close to 500 point trading range and closed at bottom of that range. We can see that it is tentatively looking at testing that support. In the short term, hedge fund withdrawals continued and also we saw a rise tomorrow and fully expected to cut the interest rates by 50 basis points and the rate will be down at 1%. If that is the case, the NASDAQ was down 3% on the session, just around those 3 lows. We saw all above. We saw Apple, Microsoft and Cisco well down between 1 and 5% on the session. We also saw the SP500 down 3% on the session to 848. We saw the US government announced their rejections for the deficit is topping 1 trillion dollars for financial year 2009 and the US sales figures were released and they did jump 2.7% for the month. The big concern or the big issue still is the availability of credit within the credit market that was starting to ease in the last few days, but it is still very tight and corporate availability of credit is still very tight.
We also saw the auto makers up a little bit after US said that they are looking to provide 5 million dollars to facilitate the merger of GM and Chrysler.
In the UK, we saw that market down 5% and through the day, but they did manage to close around 0.8% on the session. It is testing those lows there as well and we are seeing that it did close the lowest it’s seen since April 2003 as banks were sold off significantly. We saw stocks like Standard Chartered, Royal Bank of Scotland and HSBC all down between 5% and 10% for the session.
Elsewhere, we saw movement into defensive in the UK. We saw the pharmaceuticals all up on the session with Glaxo up 5%. We also saw few retailers on the rise as well with Morrison and Tesco and saying to be all up around about that 4% to 5% range. Elsewhere, in Europe, we saw that French CAC down 4% on the session and the German DAX ended up 0.9% after big rally from Volkswagen which has been sold off quite heavily off late.
In the Asian markets we saw the NIKKEI down 6.3% on the close, it is lows close since 1982.The G7 summit has raised its turns about the strength at the end saying it’s problematic for the economy going forward to explore this and banks were all heavily hit. We saw Toyota and Honda down around the 8% to 9% mark and Mitsubishi and Mizuho and Mitsui all down between 11 and 15% on the session as Mitsubishi financials said that they are looking to raise 10.8 billion dollars in order sure up a capital raise going forward.
Elsewhere, we saw Hong Kong close to 13% low that is 12.7% low and Chinese markets were down 6% on the session. In commodities, we see that oil is looking to test the 60 dollar level ark which was yesterday, which is testing the 70 dollar level. It again closed down at 1% at 62 dollars. We also saw that the gold price has made its way into the bottom there up to 742 up 12 dollars for the session.
Elsewhere in the commodities, we saw that generally up actually with copper up 6.5%, lead up 2%, zinc up 1.5%, aluminum up 3.4% and nickel up 11% on the session. In news, we saw sliver down 1% on the session.
Our markets, still hostage] to what is happening in the US include seeing something, we see 60 stock sell there, ASX 200 making 52 week lows, is a significantly in our markets as well. The SPI managed to be up 2 points, but do not know whether they took into account the late sell off in the US. We are at 3 years lows and you can see there that we are around those 2500 lows at the moment.
Should you have any questions about the information provided within this presentation, please call equities and options desk or the CFD advising desk on the numbers provided, and as always trade carefully.