* US stock markets sold-off into the close, due weak US data and continuing issues with eurozone debt.
* European stock markets traded lower overnight due to weak eurozone and US retail sales data and caution ahead of the Greek elections.
* Asian stock markets rose yesterday, as investors looked for “bargains” after the recent sell-off.
* Commodities prices generally lower, Gold prices are trading around $US1,619 while crude-oil closed up around $US82.
The Australian market is expected to give back gains today, as traders take their lead from overseas, as caution prevails ahead of the Greek elections next week. Markets traded lower in the European and the US markets. The Australian dollar traded around parity overnight.
The SPI Futures is trading around the key pivot level of 4080, ended down -0.2% (or -10 points) at 4,056. The key levels for our index today are 4000 to 4120.
See below for ASX listed companies in the news today.
Economics News Today
* Jun Consumer Inflationary Expectations Survey.
US stock markets sold-off into the close, due weak US data and continuing issues with eurozone debt. Caution prevailed ahead of the Greek elections on 17 June.
The three major indexes all fell over -0.6%. In the broader markets the Materials, Energy and Consumer sectors led the falls down over -1.3% in the session.
In economic news US retail sales fell for a second consecutive month for the first time in 2-years. JP Morgan Chase Chief Executive Jamie Dimon testified in front of a Senate panel, and indications are that there will not be additional onerous regulatory fallout after JPM’s recent admission of a trading loss of more than $US2 billion. Commoidty prices continued their decline except for gold which rose 0.3%, as the US dollar fell against the euro dollar and the yen. Crude-oil futures fell 1.2% and remains at 8-month lows.
All ten company groups that make up the S&P index traded lower, with Materials down -1.5%, Energy sector was down -1.3%, Financials sector down -0.3%, Industrials sector was down 1.0%, Technology was down -0.6%, while Consumer Staples were down -1.5%.
The Dow Jones closed down -0.6% (or -77 points) at 12,496, the S&P 500 index down -0.7% (or -9 points) at 1,314, the Nasdaq ended down -0.9% (or -24 points) at 2,818 and the smaller cap Russell 2000 was down -1.2%.
European stock markets traded lower overnight due to weak eurozone and US retail sales data and caution ahead of the Greek elections. The Stoxx Europe 600 index closed down -0.4%.
Across the region the leading industrial and minering stocks sold-off after news of a 0.8% drop in eurozone industrial production in April from March. The Greek market bucked the trend rising 2.1% after the leader of anti-austerity party Syriza, Alexis Tsipras, said he is committed to keeping Greece in the euro zone. The Spanish market also ended 1.4% higher for the session.
Traders remain cautious over the effectiveness of the Spanish bank bailout plan and after reports that the G-20 meeting scheduled for next week is unlikely to provide a definitive action plan to resolve the eurozone debt crisis.
In London the FTSE 100 index closed up 0.2% (or 10 points) at 5,484, the German DAX was closed down -0.1% (or -9 points) at 6,152, while in France the CAC was closed down -0.6% (or -17 points) at 3,030, Spain closed up 1.4% and Italy closed down -0.7%. Greece up 1.2%.
Asian stock markets rose yesterday, as investors looked for “bargains” after the recent sell-off. Markets edged higher after optimism that policy makers would devise a coordinated effort to address the fallout from the eurozone debt crisis on the global economy.
In Japan the Nikkei Stock Average rose 0.6%, in China the Shanghai Composite Index added 1.3% and in Hong Kong the Hang Seng Index gained 0.8%. Stocks are likely to give back some of these gains today, as we move towards the weekend election in Greece on 17 June.
In China the SSE Composite closed up 1.3% (or 29 points) at 2,318, while in Hong Kong the Hang Seng Index closed up 0.8% (or 154 points) at 19,026 and in Japan the Nikkei 225 Index was up 0.6% (or 51 points) at 8,588 South Korean KOSPI closed up 0.3% for the session, while the Indian market closed up 0.1%.
The Dollar Index was higher at 82.42 on a lower Euro, while the Australian Dollar last traded lower at 99.58. Commodities prices traded lower.
For the session the Benchmark crude NYMEX for June delivery was down -0.9% settled at $US82.55. Copper prices are looking for key support level as Copper for July delivery was down -0.6% (or 2 cents) at $US3.317, while July Gold was up 0.4% (or $US5.60) at $US1,619.
ALS – Alesco has rejected a $188 million takeover offer from paint maker DuluxGroup.
CPU – Computershare the share registry group says the European financial problems have caused it to take a charge of up to $US65 million in its business in the region.
EGP – Investment firm Macquarie Group has bought a 5% stake in casinos operator Echo Entertainment Group.
FMG – Fortescue Metals Group the iron ore miner has merged some of its lower grade assets with Chinese state-owned steel giant Baosteel.
SDL – Sundance Resources has raised $40 million in a placement to continue developing its Mbalam iron ore project in Africa.
SEK – Seek the jobs website has abandoned plans to raise $125 million to repay debt and fund investment.
WHC – Australian coal-industry magnate Nathan Tinkler’s tentative bid for Whitehaven Coal has been rejected by the miner as incomplete and highly conditional. Tinkler may have to pay a premium of more than 30% (over $5.00/share) to secure control for the $3.9billion company.
Cellnet Group (CLT)
ASX – to open lower
US & UK/Europe – mixed
Commodities Stock Index down -1.0%
Gold Stocks Index down -0.1%
Oil Stocks Index down -1.3%
US ADRs – Broadly lower!!…
BHP down 1.2%, RIO down 1.0%; AWC down -3.7%
ANZ up 2.5% & NAB down -1.5%
NEM up 0.4%, JHX up 4.2%, NWS down -0.6%
By Michael Hevern
Head of Research