* US stock markets end lower again at 3-month lows, on concerns over global financial stability.
* European share markets continued the rout over night.
* Asian stock markets traded lower again yesterday, due to concerns over Greece moving closer to an exit from the eurozone after coalition talks failed to form a government.
* Commodities prices looking for support, with Gold prices traded around $US1,574 while crude-oil closed around $US92.
The Australian market is expected to sell-off again today, even though we saw some short covering late yesterday. Markets sold-off from the outset and finished on their lows in the European markets and in the US. Traders continued to sell on concerns over Greece, and global markets have erased over $US3 trillion from the value of equities worldwide this month, as traders fret over the eurozone financial system destabilisation.
The SPI Futures is trading below the key pivot level of 4180, ended down -2.2% (or -76 points) at 4,084. The key levels for our index today are 4000 to 4150.
See below for ASX listed companies in the news today.
US Markets
US stock markets end lower again at 3-month lows, on concerns over global financial stability.
The Dow Jones index finished below the 200 day moving average for the first time since last November. In the broader market the S&P500 and the tech-heavy Nasdaq fell to a 4-month lows, with all 10 S&P500 sectors finishing in the red led by the Financials and Industrials sectors.
Commodity prices are looking for support, Crude-oil fell to a 6-month low, while gold surged the most since October as Gold rebounded from its lowest level of the year. However the US Dollar Index climbed for a record 14th straight day which is driving the pullback in commodity prices.
Traders continued to sell on concerns over Greece, and global markets have erased over $US3 trillion from the value of equities worldwide this month, as traders fret over the eurozone financial system destabilisation.
In economic news the Federal Reserve Bank of Philadelphia’s general economic index decreased to minus 5.8 in May, indicating an unexpected contraction in manufacturing. The index of leading economic indicators dropped in April for the first time in seven months.
In corporate news Jamie Dimon JP Morgan’s CEO will face regulators over the $US2 billion trading loss announced in the past week, while there is excitement over Facebook’s IPO which is due to list tonight, at $38/share raising $US16 billion in the biggest IPO exver and valuing the company at over $US100 billion.
All ten company groups that make up the S&P index traded lower, with the Materials down -2.2% , Energy sector was down -0.6%, Financials sector down -2.0%, Industrials sector was down -2.1%, Technology was down -1.4%, while Consumer Staples were down -2.6%.
The Dow Jones closed down -1.3% (or -156 points) at 12,442, the S&P 500 index down -1.5% (or -20 points) at 1,305, the Nasdaq ended down -2.1% (or -60 points) at 2,814 and the smaller cap Russell 2000 was down -2.3%.
European Markets
European share markets continued the rout over night. The Stoxx Europe 600 Index lost another -1.1%, as five shares dropped for every one that gained and extending its declines to the lowest level this year.
Selling continued as concern about the European debt crisis deepened, as Moody’s Investors Service has downgrade the credit ratings of 16 Spanish banks, while the ratings firm confirming the cuts after U.S. markets closed. Across the region eurozone banks slumped another -2.4 percent, sliding to their lowest levels since November, and were the biggest drag the markets.
The Spanish market finished at 9-year lows, while the Italian market fell to its lowest level since March 2009. In a flight to safety the German bunds rose, pushing yields on two, five and 10-year debt to record lows. Spanish cost of debt funding has double since the start of April.
Greece has set the date for its new elections for next 17 June, and it is seen as a vote for a referendum on Greece staying in the 17-nation currency bloc, so the market uncertainty is likely to continue through to mid-June.
In London the FTSE 100 index last closed down -1.2% (or -67 points) at 5,338, the German DAX was closed down -1.2% (or -75 points) at 6,309 while in France the CAC was closed down -1.2% (or -37 points) at 3,012, Spain closed down -1.1% and Italy closed down -1.5%.
Asian Markets
Asian stock markets fell again yesterday, due to concerns over Greece moving closer to an exit from the eurozone after coalition talks failed to form a government. Greece will new elections on 17 June.
Across the region the financials and materials sectors led the falls, as traders hit the sell button on concern over eurozone financial stability and slowing Chinese economic growth. However there did appear to be some short covering/bargain hunting late in the session. However the selling will continue today after the performance of overseas markets overnight as the eurozone debt crisis worsens.
In China the SSE Composite closed up1.4% (or 33 points) at 2,379, while in Hong Kong the Hang Seng Index closed down -0.3% (or -59 points) at 19,200 and in Japan the Nikkei 225 Index was up 0.9% (or 75 points) at 8,876, South Korean KOSPI was up 0.3% for the session, while the Indian market closed up 0.3%.
Commodities
The Dollar Index was higher at 81.53 on a lower Euro, while the Australian Dollar last traded lower at 98.87 Commodities prices traded lower again.
For the session the Benchmark crude NYMEX for June delivery was up 0.2% settled at $US92.75. Copper prices are below key support level as Copper for June delivery was down -0.6% (or -0.2 cents) at $US3.464, while June Gold was down -0.1% (or -$US1.00) at $US1,574.
In China the SSE Composite closed down 1.2% (or -29 points) at 2,346, while in Hong Kong the Hang Seng Index closed down -3.2% (or -634 points) at 19,259 and in Japan the Nikkei 225 Index was down -1,1% (or -100 points) at 8,801, South Korean KOSPI was down -3.1% for the session, while the Indian market closed down 1.8%.
CommoditiesThe Dollar Index was higher at 81.1 on a lower Euro, while the Australian Dollar last traded lower at 99.14. Commodities prices traded lower again.
For the session the Benchmark crude NYMEX for June delivery was down -1.3% settled at $US92.73. Copper prices are breaking key support level as Copper for June delivery was down 1.4% (or -5 cents) at $US3.479, while June Gold was down -1.1% (or -$US17.40) at $US1,540.
ABC – Adelaide Brighton the building materials producer expects sales to improve slightly in 2012, but challenges remain because of weak construction activity.
BHP – BHP Billiton is turning its back on a silver, lead and zinc, JV project in north Queensland amid doubts over its potential.
CBA – Commonwealth Bank of Australia (CBA) has posted a profit of $1.7 billion for the three months to March, but says higher funding costs have reduced its margins.
CRF – Centro Retail Australia has sold its 50 percent stakes in three of its shopping centres to billionaire Stan Perron for $690.4 million.
CWK – Coalworks has called for its shareholders to reject a $142 million takeover offer as well as a separate bid to dump its chairman and chief executive.
IAG – Insurance Australia Group (IAG) is to review its underperforming business in the United Kingdom, which could result in its sale.
IDL – Industrea says the US giant General Electric (GE) will increase its presence in the booming resources sector with a $700 million friendly takeover for Australian mining equipment-maker.
LEI – Leighton Holdings construction giant has appointed an external consultant to review its disclosure procedures after breaching laws earlier this year.
SHL – Sonic Healthcare will buy Healthscope’s pathology businesses in three Australian states and Candberra for $100 million.
SPN – SP AusNet the Victorian electricity and gas distributor says full year profit has risen to $253 million due partly to higher electricity prices.
SYD – Sydney Airport has reaffirmed distribution guidance at 21 cents per stapled security for calendar 2012 and says it has ample capacity to deal with the expected growth in passengers.
TOL – Toll Holdings Transport and logistics group has warned of lower earnings in 2012, sending its shares plummeting.
Corporate News
PanAust Ltd (PNA.AU) Full year 2011 AGM
Incitec Pivot (IPL)
Market Summary
US ADRs – Sharply Lower!!…
BHP down -1.4%, RIO down -2.1%; AWC down -2.5%
ANZ down -1.6% & NAB down -2.3%
NEM up 4.0%, JHX down -1.2%, NWS down -1.5%
By Michael Hevern
Tags: Asian Markets, ASX, ASX News, Business News, Commodities, Crude Oil, European Markets, Ex Dividend, gold price, Nasdaq, Stock Market Analysis, stockmarket, trading, US Market wrap
