* US stock markets recovered from steep early losses to finish flat for the session.
* European stock markets gave back all of their gains from the previous couple of session to record their biggest single-session falls in a month.
* Asian stock markets fell again yesterday, due to concerns over Greece.
* Commodities prices lower again, with Gold prices traded around $US1,561 while crude-oil closed around $US90.
The SPI Futures is trading at the key pivot level of 4080, ended up 0.3% (or 13 points) at 4,080. The key levels for our index today are 4050 to 4120.
US stock markets recovered from steep early losses to finish flat for the session, as EU leaders indicated support to keep Greece in the euro.
The Dow Jones index ended slightly lower recovering from a 190 point fall The S&P 500 Index ended flat after recovering from a 1.5% early tumble. Shares rebounded as the S&P 500 approached a 4-month low below 1,300. The S&P 500 rose for a third straight day as commodity producers and industrial companies reversed earlier losses to lead gains among the 10 S&P groups.
Bargain hunters stepped in after reports of optimism that the European leaders will do more to arrest the contagion from the euro zone’s debt crisis and will take action to stabilise the situation with Greece.
The US dollar continues its rise and is above September highs, as the 10-year Treasury yields remained at multi decade lows at 1.73%. In commodities crude-oil closed below $90 a barrel for the first time since October, and the gold price retraced. The euro dollar pared its drop after sinking to an almost two-year low and U.S. Treasuries trimmed gains.
All ten company groups that make up the S&P index traded generally higher, with the Materials up 1.2% , Energy sector was up 0.4%, Financials sector up 0.4%, Industrials sector was up 0.5%, Technology was up 0.1%, while Consumer Staples were up 0.5%.
The Dow Jones closed flat (or -6 points) at 12,496, the S&P 500 index up 0.2% (or 2 points) at 1,319, the Nasdaq ended up 0.4% (or 11 points) at 2,850 and the smaller cap Russell 2000 was up 0.7%.
European stock markets gave back all of their gains from the previous couple of session to record their biggest single-session falls in a month. The Stoxx Europe 600 Index sank 2.1%, its biggest drop in a month as the index has now plunged -12% its mid-March highs.
European leaders met overnight to discuss the eurozone’s debt crisis after deepening concern Greece will exit the euro has wiped around $4 trillion from global equity markets in May. Some of the measures being considered are selling euro bonds, the use of European money to recapitalise banks, a bigger rescue fund and extra time for debt-laiden countries to cut spending, but Germany is dead against these actions.
Sellers stepped in after EU leaders said the eurozone countries should have a contingency plan for the case if Greece leaves the euro. Mining stocks took the brunt of selling with Rio Tinto Group and Vedanta Resources down and the materials index down -3.9%, the biggest sector decliner, while European banks fell 2.9% and were the biggest drag on the index among 19 European key sectors.
Eurozone financials were again under selling pressure, despite having increased their capital buffers and written down Greek bonds and used central-bank loans to help refinance units in southern Europe. These banks remain subject to the contagion that might follow a withdrawal of Greece from the euro and the corresponding loss of confidence in the European financial system.
German 30-year yields traded below 2% for the first time as investors sought safe haven investments. London markets were weaker on the back of disappointing retails sales, down -2.3% the most in over 2-years
In London the FTSE 100 index last closed down -2.5% (or -137 points) at 5,266, the German DAX was closed down -2.3% (or -150 points) at 6,285, while in France the CAC was closed down -2.6% (or -80 points) at 3,003, Spain closed down -3.3% and Italy closed down -3.7%.
Asian stock markets fell again yesterday, due to concerns over Greece moving closer to an exit from the eurozone, as traders took “risk-off” their books.
In Japan exports rose a less-than-estimated 7.9 percent in April from a year earlier (below the estimated 11.8% rise), confirming the risk that global demand weakness may limit any rebound in the world’s third- biggest economy.
In China the market eased again, despite Chinese leaders pledging to move towards intensify “fine-tuning” of policies signaling a commitment to economic growth as domestic demand slows due to the escalating eurozone debt crisis. These comments come on the back of comments from Premier Wen Jiabao’s that the government will be focused on bolstering Chinese economic growth, by increasing spending on key infrastructure projects that are vital to the overall economy, including construction of railways, environmental protection and rural projects. Expect continued volatility in trading today.
In China the SSE Composite closed down -0.4% (or -10 points) at 2,363, while in Hong Kong the Hang Seng Index closed down -1.3% (or -253 points) at 18,786 and in Japan the Nikkei 225 Index was down -2.0% (or -173 points) at 8,556, South Korean KOSPI was down -0.6% for the session, while the Indian market closed down -0.5%.
The Dollar Index was higher at 82.20 on a lower Euro, while the Australian Dollar last traded lower at 97.43. Commodities prices traded lower.
For the session the Benchmark crude NYMEX for June delivery was down -1.5% settled at $US90.46. Copper prices are below key support level as Copper for July delivery was down -1.1% (or -3.8 cents) at $US3.446, while July Gold was down -1.0% (or -$US15.60) at $US1,561.
ASX News Today
AQP – Aquarius Platinum says a fire at a platinum mine in Zimbabwe part owned by Aquarius Platinum could affect the company’s production.
AVL – Australian Vintage the winemaker has won praise at two international wine competitions.
BXB – Brambles says the sale of its data management business continues to take longer than expected.
CDU – CuDeco the copper miner has received development approval for a new ship loading and storage facility in Townsville.
GNC – GrainCorp the grains marketer and malt producer has lifted first half profit by more than 50 percent and upgraded its full year forecast.
ILU – Iluka the Minerals sand miner expects its earnings to rise in calendar 2012, despite weaker demand for some of its products.
LEI – Leighton Holdings the global construction group says it is on track to report a full year profit of between $400 to $450 million.
MYR – Myer says 3Q sales have fallen and the department store chain has downgraded its forecast for full year net profit.
QAN – Qantas Airways says it is splitting its international and domestic operations into two separate businesses from July. Qantas and Jetstar will cut the number of flights arriving at Darwin and Uluru because of poor patronage due to a slump in overseas visitors.
RCT – Reef Casino complex in Cairns says weak local and global economic conditions have made 2012 a challenging year.TGA – Thorn Group says full year net profit has risen 26.4 percent, but market factors could cause a slowdown in the rate of growth in fiscal 2013.
Beadell Resources (BDR) Full year 2011 AGM�
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Spark Infrastructure Group (SKI) Full year 2012 AGM
SP AusNet (SPN)
ASX – to open higher
US & UK/Europe – US Recovers, EU Slumps
BHP down -0.7%, RIO down -1.0%; AWC down -4.6%
ANZ down -1.2% & NAB down -0.4%
NEM up 2.9%, JHX up 0.5%, NWS down -1.6%