Online Stockmarket Trading Update

 *  US stock markets pushed steadily higher over the session.
*  European stock markets recovered to finish in the green overnight.
*  Asian stock markets fell yesterday, as the US Fed Chairman failed to outline a definitive plan for QE3.
*  Commodities prices generally higher, Gold prices are trading around $US1,573 while crude-oil closed up around $US90.

The Australian market is expected to trade higher today, as traders have a positive lead from the overseas investors.  Markets rose in  Europe and in the US as the strong corporate earning and better-than-expected housing data were celebrated and the fed Chairman hinted at QE3 if it employment remains an issue for the US, but no timeline was given.  

The SPI Futures is trading above the key support level of 4000, ended up 0.8% (or 35 points) at 4,127. The key levels for our index today are 4120 to 4200.   Remember it is index options expiry on the open today.

See below for ASX listed companies in the news today.

U.S. Markets 

US stock markets pushed steadily higher over the session.  Traders were helped by strong corporate earnings, better-than-expected housing data and the hint of further easing available from the Fed. 

The Fed Reserve Chairman Ben Bernanke said it is “certainly possible” the central bank could take new steps to support the economic recovery if the jobs market does not show improvement, however he was vague on any plans going forward. 

All three benchmark indexes rose over 0.7%, with the S&P500 pushing towards a 2-month high, and all three major indexes are now in positive territory for July.  Industrials and technology sectors led with strong gains, while the financial and consumer-staples sectors weighed. 

In economic data, showed US home construction rising 6.9% last month from May, better-than-expectations for a 5.2% monthly gain and marking the highest level in nearly four years, but building permits for June fell -3.7%. 

In corporate news Intel rose 3.3% after the bellwether semiconductor maker topped earnings expectations, though it also lowered its full-year revenue-growth outlook, citing a more challenging macroeconomic environment. VMWare and EMC also supported the sector after positive earnings.

All ten company groups that make up the S&P index traded higher, except for Financials down -0.5%, while  Industrials and technology sectors jumped up over 1.7%.

The Dow Jones closed up 0.8% (or 103 points) at 12,908, the S&P 500 index  up 0.7% (or 10 points) at 1,373, the Nasdaq ended up 1.1% (or 32points) at 2,942 and the smaller cap Russell 2000 was up 0.7%.

European Markets

European stock markets recovered to finish in the green overnight.  The Stoxx Europe 600 index jumped 1.1%, its highest closing level since late April. 

Investment sentiment was buoyed as US Federal Reserve Chairman Ben Bernanke reiterated his comments that the Fed is commitment to ease monetary policy if needed, but again was vague any plans for further quantitative easing.

The Spanish market managed gains, despite the banks sell-ing off, after Societe Generale cut its earnings estimates for the country’s banking sector by 12% on average and said it expects earnings to drop by 47% quarter-on-quarter.

In Italy the banks also suffered, as Societe Generale estimated Italian banks would see earnings slashed by 75% for the quarter. Elsewhere traders also cheered the strong earnings from Credit Suisse Group AG and Nordea Bank of Sweden, as they rose around 3% after reporting better-than-expected earnings.

In London the FTSE 100 index closed up 1% (or 56 points)  at  5,685, the German DAX was closed up 1.6% (or 107 points) at 6,684, while in France the CAC was closed up 1.8% (or 58 points) at 3,235, Spain closed up 0.5% and Italy closed up 0.4%.  Greece up 2.4%.

Asian Markets

Asian stock markets fell yesterday, as the US Fed Chairman failed to outline a definitive plan for QE3.

In Japan the Nikkei Average ended down -0.3%, as a result of a rise in the yen late in the session which weighed on exporters and selling in power companies. 

In China, traders were buoyed by new from the state-run China Securities Journal swhic reported that China should shift its monetary stance towards easing to stop the slowdown in economic growth.  Analysts are expecting impending announcement of a reduction in the Chinese reserve requirement ratio (RRR), the minimum amount of capital that banks have to keep in reserves. 

In Hong Kong the Hang Seng Index dropped -1.1%, as the share in the company HSBC fell -2.1% after the top executive in charge of the bank’s anti-money laundering programs stepped down in the wake of a US Senate investigation into risky practices.  Chinese property developers also dragged on the Hang Seng Index, as signs of recovery in the housing market were taken as an indication that the Chinese government will maintain its tough policy towards the sector.

In China the SSE Composite closed up 0.4% (or 8 points) at 2,169, while in Hong Kong the Hang Seng Index closed  down -1.1% (or -215 points) at 19,239,  and in Japan the Nikkei 225 Index  was down -0.3% (or -28 points) at 8,726, South Korean KOSPI closed down -1.5% for the session, while the Indian market closed up 0.5%.

Commodities

The Dollar Index was higher at 83.24 on a lower Euro, while the Australian Dollar last traded higher at 1.0365. Commodities prices traded generally higher.

For the session the Benchmark crude NYMEX for August delivery was up 0.8% settled at $US89.97.  Copper prices are looking for key support level as Copper for August delivery was up 0.5% at $US3.472, while August Gold was down -1.0% (or -$US16.50) at $US1,573.

ASX News Today

AIO – Asciano will axe 270 jobs and build a more automated workplace as it completes a $348 million expansion of its container terminal at Port Botany in Sydney.

BHP – BHP Billiton has flagged a five per cent rise in 2013 iron ore production after a bumper result for the June quarter. BHP Billiton says the production and sales at its key iron ore division are expected to have risen in the quarter to 30 June, but falling commodity prices will cause overall net profit to fall.
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FMG – Fortescue Metals Group has lifted its full year sales by 40 percent to 55.8 million tonnes (mt) for the 2012 financial year, but may need an additional $1 billion to fund its expansion plans.

NAM – Namoi Cotton Co-operative the cotton producer says several parties have expressed interest in becoming “cornerstone” investors in the company.

NAB – The British financial services watchdog is to investigate National Australia Bank’s two UK lenders to see if they mis-sold products designed to protect businesses from interest rate rises.

NWS – Newcorp’s group of Australian media companies have won a long-running battle with the Australian Taxation Office over more than $2 billion in tax deductions.

TZL – TZ Ltd has said that the Mark Bouris technology company has cut jobs and costs as part of a major restructure of its businesses.

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 Thursday, July 19th, 2012 at 9:35 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.