* US stock markets rose, overnight as bargain hunters stepped in after a 3-week selloff.
* European stock markets climbed overnight, rebounding from the largest weekly selloff since September.
* Asian stock markets rose from 5-month lows, yesterday, on th back of supportive comments from chinese, German and French leaders about supporting growth in the near-term.
* Commodities prices finding support, with Gold prices traded around $US1,592 while crude-oil closed around $US93.
The Australian market is expected to see some bargain hunting today, as traders take their lead from overseas. Markets rebounded overnight after several weeks of heavily selling in the European and US markets. Traders bought up after the global markets have erased over $US4 trillion from the value of equities worldwide in May. Remember it is options expiry Thursday.
The SPI Futures is trading below the key pivot level of 4080, ended up 0.8% (or 33 points) at 4,105. The key levels for our index today are 4080 to 4150.
See below for ASX listed companies in the news today.
US Markets
US stock markets rose, overnight as bargain hunters stepped in after a 3-week selloff had erased all the gains for the year, as traders cheered comments from China that signaled it would support growth and German and French officials said they will work to keep Greece in the eurozone.
The S&P500 index has been down -8.7% since its April 4-year highs. Overnight the S&P 500 had its biggest gain in 2-months, as all 10 S&P groups in the index rose led by materials, technology and industrial sectors. Traders are starting to see value as the S&P 500 traded at 13.1 times reported earnings, which is well below the the 50 year average of 16.4.
Stocks rebounded from 4-month lows, as Chinese Premier Wen Jiabao pledged to focus more on bolstering growth. Germany and France have agreed that they will do “everything necessary” to ensure Greece remains in Euro. Germany Finance Minister Wolfgang Schaeuble said they will consider all ideas on bolstering euro area growth, Schaeuble said.
In corporate news, Facebook finished below its listing price, losing $US19 billion of its market cap. JP Morgan may be facing more than $US2 billion in trading losses as the positions are unwound. Commodities also found support as crude-oil rose for the first time in 7-days in New York as China pledged to boost the Chinese economy and Goldman Sachs reported the balance between the supply and demand of crude is tightening. The $US90 level is huge for oil being the 50% level of the 2008 trading range.
All ten company groups that make up the S&P index traded higher, with the Materials up 2.9% , Energy sector was up 2.3%, Financials sector up 0.9%, Industrials sector was up 2.2%, Technology was up 2.5%, while Consumer Staples were up 1.8%.
The Dow Jones closed up 1.1% (or 135 points) at 12,504, the S&P 500 index up 1.6% (or 68 points) at 1,316, the Nasdaq ended 2.5% (or 68 points) at 2,847 and the smaller cap Russell 2000 was up 2.3%.
European Markets
European stock markets climbed overnight, rebounding from the largest weekly selloff since September, as Chinese pledge to boost growth and trader put concern that Greece may be forced to leave the eurozone on the back burner. The Stoxx Europe 600 Index rose 0.5%, rebounding from last week’s -5.2% drop. This index has now plunged -12% snce its mid-March high, due to the fears over Greece’s ability to implement austerity pledges and that Spanish banks will need to be bailed out.
Across the region the gains were led by growth-sensitive stock like the car makers and miners, financials also saw some bargain hunting.
Stocks rebounded from a multi-month lows, as Chinese Premier Wen Jiabao pledged to focus more on bolstering growth. Germany and France have agreed that they will do “everything necessary” to ensure Greece remains in Euro. Germany Finance Minister Wolfgang Schaeuble said they will consider all ideas on bolstering euro area growth, Schaeuble said.
Equities markets rose in 12 of the 17 Eurozone markets, as in the three majors climbed over 0.6%, while in Italy the market eased -0.3% as large number stocks traded Ex-div.
In London the FTSE 100 index last closed down -0.6% (or -70 points) at 5,304, the German DAX was closed up 0.9% (or 60 points) at 6,331, while in France the CAC was closed up 0.6% (or 19 points) at 3,027, Spain closed up 0.4% and Italy closed down -0.3%.
Asian Markets
In China the SSE Composite closed up 0.2% (or 4 points) at 2,348, while in Hong Kong the Hang Seng Index closed down -0.2% (or -29 points) at 18,922 and in Japan the Nikkei 225 Index was up 0.3% (or -22 points) at 8,633, South Korean KOSPI was up 0.9% for the session, while the Indian market closed up 0.2%.
Commodities
The Dollar Index was lower at 81.20 on a higher Euro, while the Australian Dollar last traded lower at 99.18 Commodities prices traded higher again.
For the session the Benchmark crude NYMEX for June delivery was up 1.1% settled at $US92.58. Copper prices are below key support level as Copper for June delivery was up 1.8% (or 6 cents) at $US3.5335, while June Gold was up 0.1% (or $US0.20) at $US1,592.
AGL – The S&P Ratings Services says it has maintained its ‘BBB’ long-term corporate and issue ratings on AGL Energy, but left it on creditWatch with negative pending the implicaions of the acqusition of Loy Yang power station in the State of Victoria. The ACCC will publish its findings on 24 May.
ANZ – ANZ chief executive Mike Smith says, credit markets are already closing as the euro zone debt crisis continues.
CPB – Campbell Brothers the laboratory group has reported full year profit is up 68 percent and the company expects more growth in the year ahead.
ELD – Elders has returned to profitability with a first half net profit of $40.5 million.
JHX – James Hardie Industries the building products maker has posted a significantly improved full year profit due to a favourable ruling in a long-running tax dispute.
ORI – Orica the chemicals, has announced it is part of a joint venture that will build a $US800 million ammonium nitrate plant on the Burrup Peninsula in Western Australia’s Pilbara region.
PMP – PMP the printer and publisher has added more than 10 percent in value after the company confirmed ticketing and labelling group TMA is behind a recent takeover bid.
QAN – Qantas is expected to announce it is cutting over 400 jobs in its engineering department as it closes down its heavy maintenance base at Tullamarine Airport.
TOE – Toro Energy is in atading halt with news that WA could be a step closer to getting its first uranium mine.
Corporate News
None
Market Summary
BHP down -1.7%, RIO up 3.8%; AWC up 3.4%
ANZ up 3.1% & NAB up 2.6%
NEM up 3.9%, JHX up 0.6%, NWS up 1.1%
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
