Online Stockmarket Trading Update

*  US stock markets rose steadily overnight but eased on the close,as traders had factored in the “pro-bailout” party win in Greece late last week.
*  European markets initially rallied after the results from the Greek parliamentary election in which the “pro-bailout” party was successful.
*  Asian markets closed higher yesterday, after the “pro-bailout” party was succesful in the Greek elections.
*  Commodities prices generally higher, Gold prices are trading around $US1,629 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 as the G-20 and the FOMC Fed meetings this week.  Markets traded mixed in the European and the US markets after the “pro-bailout” party was elected in Greece on the weekend.  The Australian dollar again traded above parity overnight.

The SPI Futures is trading around the key pivot level of 4080, ended down -0.3% (or -31 points) at 4,122. The key levels for our index today are 4080 to 4150. 

See below for ASX listed companies in the news today.

Economics News Today

*  June     RBA – Reserve Bank Board Monetary Policy Meeting Minutes.

U.S. Markets 

US stock markets rose steadily overnight but eased on the close, as traders had factored in the “pro-bailout” party win in Greece. 

The Dow Jones Index closed down modestly. In the broader markets the S&P 500 stock index  and the Nasdaq edged higher.  The gains were led by the Materials, Technology and the Healthcare sctors while the Financials and the Energy sectors weighed.  Home buliders supported the markets as a reading on home-builder confidence rose to a 5-year high. 

The markets are at key levels, testing the 50% retracement levels from the May sell-off.  Traders will be reacting to the news out of the Group of 20 Leaders of industrial and emerging nations, where European officials be pressured for more urgent action to resolve the eurozone debt crisis and in the US the FOMC meeting will be discussing the requirement for additional monetary stimulus in the near-term as “opertaon Twist” is scheduled to end this month.

All ten company groups that make up the S&P index traded higher, with Materials up 0.5%, Energy sector was down -0.9%, Financials sector down -0.6%,  Industrials sector was up 0.2%, Health Care up 0.8%, Technology was up 0.7%,  while Consumer Staples were up 1.3%.

The Dow Jones closed down -0.2% (or -25 points) at 12,742, the S&P 500 index  up 0.1% (or 2  points) at 1,345, the Nasdaq ended up 0.8% (or 23 points) at 2,895 and the smaller cap Russell 2000 was up 0.2%.

European Markets

European markets initially rallied after the results from the Greek parliamentary election in which the “pro-bailout” party was successful.  The Stoxx Europe 600 index closed 0.1% higher. 

Across the region European banks sold-off particularly in Italy and Spain.  The Stoxx Europe 500 banks index ended down 1.7%.  The Greek stock market continued its surge higher up another 3.6%. 

The three major markets initally rose, but the French market ended lower, as concerns over the eurozone resurfaced.  The Spanish and Italian markets underperformed in the eurozone down around -3%, as Spanish borrowing costs surged as the 10-year government bond yield ended at a record high closing level of 7.13%, while in Italy the 10-year government bond yield also rose overnight, up to 6.04%. 

Traders have the job ahead of them near-term, as markets test key levels.

In London the FTSE 100 index closed up 0.2% (or 12 points)  at  5,491, the German DAX was closed  up 0.3% (or 19 points) at 6,248, while in France the CAC was closed  down -0.7% (or -21 points) at 3,066, Spain closed down 2.9% and Italy closed  down -2.9%. 

Asian Markets

Asian markets closed higher yesterday, after the “pro-bailout” party was succesful in the Greek elections.  Across the region the gains were braod with risk assets leading the buying, on the back of the outccome of the Greek elections. 

Markets are testing 3 to 4 week highs as investors weigh the outcome in Greece against the worsening debt problems in Spain and Italy. 

In Japan the Nikkei Index and in Hong Kong the Hang Seng Index closed over 1% higher.  In China the Shanghai Composite gained 0.4%, as Chinese property developers performed well, after data showed May property prices registered a smaller-than-expected decline in housing prices. 

This is an eventful week and risk remains elevated for markets, ahead of the G-20 and the Federal Open Market Committee (FOMC) meetings this week, plus Greece still needs to go through the process of forming a new coalition government.

In China the SSE Composite closed up 0.3% (or 8 points) at 2,316, while in Hong Kong the Hang Seng Index closed up 1.0% (or 194 points) at 19,428  and in Japan the Nikkei 225 Index  was up 1.8% (or 152 points) at 8,721, South Korean KOSPI closed down -1.8% for the session, while the Indian market closed up 1.4%.

Commodities

The Dollar Index was lower at 81.92 on a higher Euro, while the Australian Dollar last traded higher at 1.0121. Commodities prices traded higher.

For the session the Benchmark crude NYMEX for June delivery was down -1.0% settled at $US82.99.  Copper prices are looking for key support level as Copper for July delivery was up 0.1% (or 0.4 cents) at $US3.387, while July Gold was up 0.1% (or $US0.60) at $US1,628.70.

APN – APN News & Media says the independent News & Media (INM), the Irish parent of Australasia’s APN, is delisting shares which have not traded on the NZ stock exchange since 2007.

CPU – Computershare says it will sell UK-based Flag Communication Limited to interests associated with the chairman Chris Morris for $624,951.

EGP – Echo Entertainment the casino operator has raised $266 million in the first stage of a new share sale launched to reduce its debt and support its VIP gambler business.  Shares returned from a trading halt as the company taps the market for Echo will raise $454 million in a 1 for 5 rights issue at $3.30 (around 30% discount). 

FXJ – Fairfax Media has announced plans to cut 1,900 jobs, close two printing plants and introduce online subscriptions.

LYC – Lynas  the rare earths miner says the appeal against the operating licence for its controversial new plant in Malaysia was dismissed.

MYR – MYER chief Bernie Brookes has described the Australian retail landscape as a “tale of woe” where sector growth will remain below 3% for the next few years due to consumer concerns over rising energy prices, steeper healthcare and education costs and the carbon tax.

PPT – Perpetual the wealth manager says it is not aware of a reported private equity takeover bid that has prompted a spike in its share price.

TCL – Transurban has written down the value of a toll road in the United States by $138 million.

Corporate News

Ex-dividend Date

None

Market Summary 

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

This entry was posted on Tuesday, June 19th, 2012 at 9:37 am and is filed under ASX Company News, Morning Wrap, Stock Market Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.