Presented by Michael Hevern
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Good Morning and Welcome to Cube Wrap for Wednesday, the 12th of November, I’m Michael Hevern for Cube Financial.
The information provided within this presentation is general advice only and you should consult the services of a financial professional in order to ascertain whether the information is applicable to your investment strategies and risk profile. Again, it is general advice only.
Well, DOW broke through that support level and you can see that on the chart overnight on the back of the concerns about the global economic slump and also continuing for economic use going out of the various companies. We saw Alcoa cutting back their production going forward and also there was a response to the China stimulus package that was announced in the previous session. We saw the NASDAQ also pullback to 0.2%, looks like that market is said to test its lows of October. Dell and Google have been downgraded there by Goldman Sachs and it is a general concern about the growth of the economy going forward.
We saw commodity stocks were down. Energy and tech stocks were also down across the board. We saw Starbucks as a gauge of retails pending cut back there. Profit forecast going forward and that disappointed investors and stocks that sold down 3%. .
GM continues its slide with 5th straight day of selling down 9.2% on the session and it is in variable troubles as far as concerned. The key stocks in the NASDAQ, Google down 3% and said Goldman Sachs have downgraded that company. Also Barclays has downgraded Dell and it was down 5% on the session.
Across in the UK, we saw that the market was also down 3.6% finishing at 4246. Looks like its going to do at the very least, test the levels there of the retracements levels of the move over the past 3 weeks and the selling was again generally across the board with banks and commodity stocks all down. We saw the energy stocks, as of BP, BG group, and Royal Dutch Shell down between 4% and 10% on the session.
The big miners, BHP, RIO, Vedanta, and Anglo all down between 7% and 14% on the session. Banks also weigh with Lloyds Bank down 9% and HBOS was also down 8% on the session as well as Standard Chartered from HSBC down 4% and 5% on the session. It was some array of hope in the UK market in the defensive stocks Vodafone rose 6% being seen as a defensive player and also Smith Cline was up 1% being a defensive pharmaceutical sector exposure there.
Elsewhere in Europe, we saw the DAX down 5% and the French CAC was down 5% as well. So that negative lead from the UK also fled into the European stocks. We saw in Asia that that market was down 3% just at best it’s going to test the big levels of its 10 day move and however we would see that actually just below as well. At the very least it can afford to be just down to that bottom demand of around that 7400 level.
The recovery on the back of the Chinese stimulus package was short lived and we saw profit taking overnight. We also saw that trading companies, which did spike up on the back of the stimulus package of China held their gains with high construction of 3% and commodity was still up 1.5%. However, we did see the problems in the auto sector from the US fled through to the Asian markets with Toyota down and also Sun was down as well.
Elsewhere in Asia we saw the Hong Kong share prices closed at 4.8% buy and Chinese stocks actually closed down 1.7% lower.
In the commodities markets, we see that oil suffering from the like of global demand, continues to pullback in think that downtrend line there that has head off the support for that it’s a fair way away all the way back of 50 dollars. We also saw that the Chinese stimulus package did really flow on to increase the prices in that regard.
We also saw gold pullback, it was down around that 10 dollars to finish at 733 and that meant that all the other commodities pullback as well with sliver down 4%, copper down 6.3%, lead down 5.3%, zinc was on the few commodities was up 1% and aluminum and nickel were down 2% and 5% for the session.
On the ASX, we look to test the recent lows of October. SPI was down 69 last I saw and we would be looking to very least there testing that demand retracement level there which is around about the 3800 level.
The other news that is in the ASX market today, we saw Asiana going to trading all yesterday after the Citi two brokers cam out with severity notes about the company the company Citi headline there as crisis of confidence [which meant that the stock actually sold off around at 60% on open.
We also saw the banks weigh heavily yesterday. The issue there is that they do have exposure to all the problems with the world economy. They do have exposure to Asiana and thus is unsure what extend of exposure is to that stock if it does have to go into conception.
Alumina also seeing 2% on the back of it saying that is was cutting back on one of their projects and that would result in the cut back in aluminum production.
In going forward for 2009, NAB seemed to be sitting pretty there, snapping up at 3 billion dollars worth in capital rising; however, they did trade around about the 20 dollar mark, which is the level of the raising that was done at.
We also saw, we will expect that commodities down overnight so we would expect energy and material stocks also weigh on that market today. We expect that market to open lower and again there is busy news breaking in the US. This is another note that is of interest, the gold stocks in the US had been sold down heavily as a result of the Obama win in election and that is being flowing through to our coal stocks as well. We see Felix down 14% Glossip Coal down 6% and that is on the fact that the Obama government is going to be recommending greener types of energy stocks of energy and they are saying that they will support their going forward.
Should you have any questions about the information provided within this presentation, please call the equities and options desk or the CFD advising desk on the numbers provided, and as always trade carefully.