Stock Market Analysis
US Earnings Give ASX a Positive Lead Today
Overseas markets were mixed with the US reporting season helping US markets to continue to rise, while Europeans were cautious ahead the European bank “stress tests” results due Friday.
The SPI Futures is above the key level of 4400 the ASX is set to open higher as the SPI Futures closed up 0.9% (or 41 pts) at 4,423. The RBA minutes were released yesterday saying that the uncertainty over the European debt issues have helped keep our interest rates on hold, however the future direction of interest rates will be driven by the inflation figures due out on 28 July. Our market should continue to trade firmer again today after good performances from the U.S. and our mining and industrial sectors yesterday. M&A activity continues to drive specific stocks. Key levels to watch today are 4500 and 4350, with pivot around 4400.
US Markets
Investors chose to concentrate on the good news overnight as earnings reports were mixed. Apple, the key NASDAQ stock, once again exceeded expectations with a 78 percent surge in 3Q profits, and sales were up 61 percent. This result indicates that the consumer is still alive in the U.S., however on the flip side Yahoo disappointed with revenue falling and sales down 8 percent (YoY) as they face competition from Facebook and Google. Also disappointing were IBM, Texas Instruments, Johnson & Johnson and Goldman Sachs. Goldman Sachs reported its 2Q profit plummeted 83% to its lowest level since late 2008, as trading revenues declined 36%, which was much more than forecast. Traders sentiment improved late in the day on speculation that the U.S. may be considering a new stimulus package. The Fed chairman Ben Bernanke will address the Senate tonight. The Materials and Energy sectors continued higher up 3% and 2.3% respectively.
The Dow closed up 0.7% (or 76 points) at 10,230, while in the broader market the S&P 500 index up 1.1% (or 12 points) at 1,083 and the tech-heavy Nasdaq ended up 1.1% (or 24 points) at 2,222.
European Markets
Asian Markets
Commodities
The Dollar Index up 0.3% at 82.79 on lower Euro, while the Australian Dollar last traded higher at 88.30 The Commodities were generally higher.
Crude oil prices rose as traders eye potential tropical storms in the Caribbean and falling US stockpiles. The benchmark crude NYMEX for August delivery was up $US0.90 (or 1.2%) to settle at $US77.44. Copper prices are trading above the key $US3.00 a pound, Copper for September delivery delivery was up marginally 2.1% (or 6.4 cents) at 3.0015 a pound. Gold was higher, with August gold up $US9.80 to settle at $US1,191.70 an ounce.
Key News International Drivers Today
US – Fed Chairman Ben Bernanke to address the Senator tonight. 129 S&P 500 companies will report earnings this week.
EU – M&A activity. Bank “stress test” results on the 23 July. .
CHINA – Bargain hunting continues, on speculation the government may ease policies.
Markets Overview
Overseas Markets Give Negative Lead for the ASX
|
Market |
Movement |
|
The Dow Jones Industrial Average |
Up 0.7% (or 76 pts) at 10,230 |
|
The S&P 500 |
Up 1.1% (or 12 pts) at 1,083 |
|
The Nasdaq |
Up 1.1% (or 24 pts) at 2,222 |
|
|
|
|
The FTSE 100 |
Down Marginally -0.2% (or -9 pts) at 5,139 |
|
The German DAX |
Down -0.7% (or -42 pts) at 5,967 |
|
SSE Composite (China) |
Down -0.5% (or 0 pts) at 36.0 |
|
|
|
|
The Dollar Index |
Up 0.33% at 82.79 |
|
The Australian Dollar |
Last traded at 88.30 |
|
The Commodities Index |
Up Marginally 0.12% at 261.5 |
|
|
|
|
Crude Oil Futures |
Up 1.2% at $77.44 |
|
Gold Futures |
Up Marginally 0.01% at $1,191.70 |
|
Copper Futures |
Up Marginally 0.02% at $3.0015 |
|
SPI Futures |
Up 0.9% (or 41 pts) at 4,423.0 |
|
|
|
|
|
|
|
Market |
Movement |
|
SSE Composite (China) |
Up 2.2% at 2,529 |
|
Hang Seng Index (Hong Kong) |
Up 0.9% at 20,265 |
|
Nikkei 225 Index (Japan) |
Down -1.2% at 9,300 |
|
|
|
ASX News Today
BHP- will release its June quarter production report today.
BNB – the liquidator’s examination of Babcock & Brown continues in the Federal Court.
CEY- Centennial says Banpu which has made a $2.5 billion takeover offer for Centennial, has received approval from the Bank of Thailand for it to remit foreign currency to pay for deal.
CTY – Country Road the embattled fashion retailier expects a 20% drop in annual profit due to aggressive discounting in the retail sector and the startup costs of its new 40 plus brand.
CWN- Crown the gaming firm has government support to expand the number of pokie machines at Perth’s Burswood casino.
ILU_ Iluka the mineral sands miner reported its June quarter production fell following the closure of its WA operations, but sales volumes were up strongly in 2H10
MTU- Shareholders of the telecommunication services provider M2 Telecomm can expect healthy returns, according to the company’s earnings guidance for 2010/11. Shares rose 20 cents to $1.92.
PDN- Paladin the uranium producer is considering taking over NGM Resources.
WOW- Woolworths will release its fourth quarter sales result today.
Economic Reports :
Market Summary
Market Summary
US & UK/Europe – mixed.
US ADRs – Broadly higher!!!…
ANZ up 4.1% & NAB up 4.0%
NEM up 1.7%, JHX up 5.0%, NWS up 1.8%
Gold Stocks Index up 2.2%
Oil Stocks Index up 1.4%
Head of Research
Tags: Asian Markets, ASX, ASX News, BHP, Economic Reports, European Markets, market summary, Nasdaq, Nikkei, RBA, S&P500, Stock Market Analysis, stockmarket, trading, US Market wrap
