Presented by Michael Hevern Cubefinancial Click here to watch the presentation. or Click here to download the mp3 audio recording (1071Kb).
Transcription below: ***************************************************
Good Morning and Welcome to Cube Wrap on Tuesday, the 25th of November, 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, the Dow had another stella run up another 5% overnight on the back of the Citi bailout seen as too big to file. We see economic data was still negative though and the session was fully dominated by the news of Citigroup. We also had Obama, the President US saying that the US must act swiftly and wildly in order to confront the economic crisis of historic promotions. He also nominated his economic team as well, which was seen as a positive going forward and it is unusual the President does announce his team so early, but given the economic situation, it was seen as a necessity to the US. We also saw that existing hand sales were down.
Another drop of 3% for October and the media house prices fell 11% in larger stock market record. We also saw that the Chicago Fed index was showing signs of recession yet again. It did rise to 91%, but they also revised the September figures down 3 points. We also saw that the Dallas manufacturing index was down yet again, but it fell to minus 21in November and that is from -13.7 in October, so fundamental news is still bad in the US market obviously.
The bailout of Citi is seen in positive across the country and also worldwide. We see that the bailout of Citigroup is somewhat of a lesion that the US government has learned from allowing early this year the major financial institutions to go past including Lehman Brothers as well as the failure of Washington Mutual figures US saving somewhat, so we saw that the Bank of America rise 19% and Morgan Stanley up 22%.
Goldman Sachs was also up 23% and Citi was up 50% on the back of the rescue package, so it is pretty much driven by the financials in the US. We see that also in the broader market that was up as well 6.5% breaking that resistance there and actually close above that resistance the month since early November. We also see that is supposed to get 2-day gain and the market hasn’t been able to sustain since early October.
We see in the NASDAQ that it was up 6.3% and again breaking out that downward sliding channel and actually close the above that was a good sign.We see that the rally continues in stocks like Apple and Microsoft.
Apple up 12%, Microsoft up 5%, and also Cisco was up 8% so all the stocks were all up in that market. We also saw that Xerox forecast 2009 profits generally inline with expectations. They are the biggest supplier in digital printer and document management services, so that was seen as a positive and that were up 7% to 8% on the back of that. In the UK, we saw surge there up 10%, biggest one-day gain on record.
It managed to close above that psychological 4000 level and as we see here that that bounced off that downtrending line there. Financials led the way again here with Royal Bank of Scotland up 7%, HSBC up 4%, Barclays up 10%, and we saw Lloyd and HBOS up 18% and 17% respectively. Insurers also surged as well with prudential up 20%, Aviva up 9%, and Legal & General up 10% on the session.
The miners were also backing further with Kazakhmys, BHP, and Energy Natural Resources all up between 22% and 28% on the session. That is well for out mining stocks today. We also saw the retailers get a boost from that pre-budget with Marls & Spencers and Kingfisher all up between 7% and 10% on the session. Cisco was also up 5% and 8% on the session. Also in Europe, the CAC and the DAX were both up 10% and 11% respectively.
The NIKKEI was close for yesterday. The oil price moved up above 60 dollars. We can see that it’s the first time that it’s closed above that downtrending moving average for loss since early November and that was on the back of just general positive return to confidence for the investor. We also saw gold actually spiked though, it was up again up 821 dollars on the close, up 6% on the session. We see that elsewhere in commodities, we see silver up 9%, copper up 6%, lead up 2.7%, zinc up 2.7%, aluminum up 3%, and nickel up 7% on the session.
We also saw the stock commodities 7% and 4.7% respectively. So we see on continuity of the spike and today, we see their heads up in what is happening there, we are breaking out that downtrending channel. SPI closed up 132 on the session and we have obviously a positive lead for out market today. Elsewhere in news in out market, Sun raised it’s forecast which didn’t help the share prices today and the concerns about the impact of the storms up in Queensland and the price of the share price had been down 3% for the day. Babcock and Brown have extended their decision to Thursday still negotiating with their banks at the moment trying to stay business.
Telstra is showing determination right to the end and has 36,000 for that looking a fit for the news across the broadband.
It is a 4.7 billion dollar government facility and they are saying that they are not going to put a break forward until they get guarantee that the government wants to develop on the back of the successful bid for that new infrastructure. Fortescue was up yesterday up and again energy and gold are likely to jump today as well as financials also here is obviously going to be higher on open and fairly well based.
Should you have any questions about the information provided within this presentation, please call the equities and options desk or the CFD advice desk on the numbers provided, and as always trade carefully.
Tags: ASX, ASX News, BHP, Nasdaq, Nikkei, S&P500, stockmarket, trading, US Market wrap
