* US stock markets fell overnight, for a fourth session as the start of the earnings seasons confirmed slowing global growth and commodities prices fell.
* European stock markets rose overnight, snapping a 4-day slump.
* Asian stock markets traded lower yesterday, after Chinese trade data confirmed weakening Chinese domestic demand.
* Commodities prices lower, Gold prices are trading around $US1,566 while crude-oil closed around $US84.
The Australian market is expected to trade lower again today, as traders take their lead from overseas. Markets rose in Europe as Spanish banks received some bailout funding and fell in the US as the earning season get underway.
The SPI Futures is trading around the key support level of 4000, ended down -0.5% (or -19 points) at 4,046. The key levels for our index today are 4000 to 4080.
See below for ASX listed companies in the news today.
U.S. Markets
US stock markets fell overnight, for a fourth session as the start of the earnings seasons confirmed slowing global growth and commodities prices fell, as the euro dollar fell to a 2-year low.
The three benchmark indexes fell over -0.8%. In the broader market the Materials, Energy, Industrials and Technology sectors led the falls in a broad-based selloff. 10-year Treasury yields slipped one basis point to 1.50 percent.
In corporate news the Tech sector was sold-down after AMD, the second-biggest maker of processors for personal computers, plumeted -11% after reporting an unexpected drop in second-quarter sales, citing weakness in China and Europe, while Applied Materials also cited weakness in Europe and China in cutting its 2012 sales and profit forecasts. Alcoa Inc. slumped -4.1% after reporting a quarterly loss of $2 million and a drop in sales, as JP Morgan cut its target for Alcoa by 20% citing lower aluminum prices. Cummins, the maker of truck engines, plunged -8.8% percent after reporting order trends have weakened and the company expects 2012 revenue down 10% in 2012, again they cited weakness in Europe and China.
There is obviously a recurring theme here with weakness in Europe and China impacting on corporate balance sheets, which does not bode well for our Aussie mining sector! Commodity prices were broadly weaker with crude-oil down -2.4%, natural gas plunging -5%, nickel and silver down over -2%.
All ten company groups that make up the S&P index traded generally lower, with Materials down -1.5%, Energy sector was down -1.6%, Financials sector down -0.8%, Industrials sector was down -1.6%, Health Care down -0.5%, Technology was down -1.1%, while Consumer Staples were down -0.6%.
The Dow Jones closed down -0.7% (or -83 points) at 12,653, the S&P 500 index down -0.8% (or -11 points) at 1,341, the Nasdaq ended down -1.0% (or -29 points) at 2,902 and the smaller cap Russell 2000 was down -1.2%.
European Markets
European stock markets rose overnight, snapping a 4-day slump. The benchmark European Stoxx 600 index closed 0.8% higher, snapping four consecutive losing sessions.
Trader sentiment was buoyed by news that European finance ministers had reached a deal to grant the Spanish banking sector access to EUR30 billion in aid by the end of the month as the first tranche of the bailout for the Spanish banks and they also announced that Spain will be given extra time to hit a target for reducing its budget deficit. This move is seen as a major step towards the formation of a eurozone banking union, which would have the goal of eventually using the euro-area bailout fund to recapitalise banks directly instead of saddling the government with the debts.
The Spanish market gained 0.6% on the news and the Spanish 10-year government bond yield eased 0.23 percentage point to 6.78%. In London stocks advanced as UK manufacturing rose 1.2 percent from April the biggest monthly increase since March 2010 and in Italy the market rose as industrial output grew 0.8 percent in Italy.
In London the FTSE 100 index closed up 0.6% (or 36 points) at 5,664, the German DAX was closed up 0.8% (or 50 points) at 6,438, while in France the CAC was closed up 0.4% (or 55 points) at 3,175, Spain closed up 0.6% and Italy closed up 0.5%. Greece down -3.3%.
Asian Markets
Asian stock markets traded lower yesterday, after Chinese trade data confirmed weakening Chinese domestic demand .
In Japan the Nikkei Stock Index eased, in Hong Kong the Hang Seng Index fell and in China the Shanghai Composite Index dropped all these markets were down modestly around -0.3%.
Across the region traders hit the sell button after the Chinese data showed import growth slowed more than expected in June, while the trade surplus widened sharply in June, as exports continued to grow in double-digit percentage terms, but analysts expect weaker GDP figures due out later this week. Growth-sensitive stocks suffered the biggest losses.
In China the SSE Composite closed down -0.3% (or -6 points) at 2,164, while in Hong Kong the Hang Seng Index closed down -0.2% (or -32 points) at 19,396, and in Japan the Nikkei 225 Index was down -0.4% (or -39 points) at 8,858, South Korean KOSPI closed down -0.4% for the session, while the Indian market closed up 1.3%.
Commodities
The Dollar Index was higher at 83.40 on a lower Euro, while the Australian Dollar last traded lower at 1.0192. Commodities prices traded lower.
For the session the Benchmark crude NYMEX for August delivery was down -1.4% settled at $US84.04. Copper prices are looking for key support level as Copper for August delivery was down -1.2% (or -4.1cents) at $US3.3905, while August Gold was up 0.1% (or $US0.75) at $US1,566.
ASX News Today
AWC – Alumina the Australian aluminium company reported a sharp drop in profits in its US earnings reporting season.
HDF – Pipeline Partners Australia has made a binding $1.23 billion takeover offer, for energy infrastructure investor Hastings Diversified Utilities Fund.
IAG – Insurance Australia Group is working to make its $720 million investments in Asia profitable as it targets a long-term presence in the rapidly growing region.
WES – Wesfarmers says about 300 workers have begun a strike at its Coles warehouse in Melbourne.
Corporate News
Ex-dividend Date
None
Market Summary
ASX – to open lower
US & UK/Europe – US lower & EU higher
Commodities Stock Index down -1.4%
Gold Stocks Index down -2.9%
Oil Stocks Index down -1.6%
US ADRs – Broadly lower!!…
BHP down -2.2%, RIO down -1.9%; AWC down -8.0%
ANZ down -1.6% & NAB down -1.3%
NEM down -2.7%, JHX up 0.3%, NWS down -0.6%
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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
