Presented by Michael Hevern
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Good morning, welcome to Cube Wrap for Friday the 31st of October, 2008. I am 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, this is general advice only.
Dow managed to finish up for the session after trading thought 350 point range with the triple digits yet again after the Fed cut their the interest rates to 1%. The GDP figures were also released and they were down for the quota 0.3%, which giving the worst figures seen since 7 years since 2001. Endless to say there is expecting to further decline in 2009. Consumer spending was also recorded and seemed to be the worst since 1980s. We had the Kansas City Fed releasing manufacturing figures saying that they hit a records low; the figure was minus 23 in October, minus 9 in September and was the worst reading that they have seen in the 14 years history of the Kansas City Index manufacturing index. The 3 months dollar level also fell shortly this week, jumping to 3.1925 for Wednesday that compares to a peak of 4.82% on October 10, so not much good news on the economic front over there, but the market did struggled out somewhat and wasn’t as bad as was expected.
We see also that in the NASDAQ, it was up 2.5% AMEX said that it will cut 10% of its work loss, that 7000 jobs, they are losing there and cutting as well another big companies in the US. The NASDAQ is seeing to be the biggest beneficiary in the economic revival. So, they have brought in through that downtrend line you can see there, similarly for the Dow. The Dow actually came into resistance today. The NASDAQ seems to have a bit more to go before it does reach the resistance levels.
We saw Apple up 6.2% and Intel up 8% on the session. They also benefited from a pullback in the oil price and airline index had surged 10% overnight. Exxon reversed its costs in the afternoon trading ending up 0.5% after it say that its profited exceeded expectations. Prudential was also the big mover on the day trading 18% after it released a significant quarterly loss. In rest of the market, we the New York stock exchange, four stocks eventual to every one. Finally, on the NASDAQ we saw 3 stocks rising for every one sale that is fairly broad based move there. It will be interesting to see whether we see that follow-through to night.
The UK saw that market up just over 1% stock to be 03 lows. The banks and miners actually moved, but that was despite below the commodities prices. We saw FTSE trading in a 150 point range and finishing that midpoint at that range. We also saw banks, Royal Bank of Scotland, HBOS, the Lloyds and Standard Chartered probably 24.4 and 10% on the session. Miners also held their own gain with Fin Data being the big mover up 16% on the session. We saw the BHP, Rio and GUSTAV all up 25 and 8% on the session.
Elsewhere, in the Europe we saw the French CAC up 0.2% and German DAX up 1.3%. The big news in the German market, Lloyd still inhabiting the Volkswagen its gone through a wild ride with short sellers and the short sellers aim that is something that hedge funds don’t want to see at the moment they were shorting the stock and they were caught in the short squeeze as porche said that they would assist or take a 756% stake in Volkswagen.
Going forward we see in the Asia, the Nikkei up significantly there, the trade closing at 5 day, bouncing of the 82 lows. We can the Bank of Japan said that they would likely cut rates causing a soft front in the Yen which will help exporters. Talking 3 days ago that 7 past level. It was actually at 9000, closing just above the 9000 last night, so huge volatility there.
We saw elsewhere in Asia that Hong Kong shares were up 13% and Chinese shares were up 3% on the session. In commodities, we saw the oil price pulled back on stronger US dollar and as traders took profits following the 5 dollar move in the previous session. We also saw gold pullback 15 dollars at 739 and that was around at 2% on the session. That has been a firmer US dollar in the climbing oil prices. We also saw in the commodities, the silver was down 0.2%, copper down 10%, zinc and lead down 8% and 4% respectively, and aluminum and nickel down 4% and 12% respectively. So this has been a significant pullback in those spikes in the prices in the prices that has happened from the last 6 to 10 days.
In our market we will see a test of the resistance level there on that downtrend line and there will all the much momentum today. We had expiry yesterday so we saw abit of short coming there as options holders squared up positions before expiry and we may so a bit of a spike this morning but it will be pulled back this afternoon.
In the ADRs of interest to us include ANZ was up by 0.6%. NAB was actually down 3% and US BHP got up, was doing fine with the catch up there up 8% on the session. Rio was up 11% on the session. That was despite the pullback in the commodity prices, but that did happen towards the end of the session.
We saw the gold stocks index up 11% and the oil stocks index up 3.5%. BHP was up 5% saw the oil stocks index up 3% and gold stocks index up 4%. We saw Newmont up 8%. We had RIO up 5%. Chevron index were also up 5 and 0.5%, so a slight pullback in the commodities prices the share prices seemed to hold up. We saw ANZ was up 3% and actually NAB was also 7% on the session.
We see that miners, BHP and RIO expected a bit of a spike with exercise option, but may be we can see this pull off at the end of the day, it is Friday remember Westpac reached their figures before market yesterday. The net profit for the year was up 12%, the cash EPS was up 6% and they did double their allocation for debts. So they are already up 4% on the close, but it look like pretty good report. MRE in the news saying that the raising 210 billion dollars, going forward and there were up for previous session 38%. Fosters are also saying that they going to delay the spin off there of their warrant assets at the moment. ASX is likely to open up on the open but just be careful it is Friday. It will be profit taking, pretty good rate for the short term traders and be careful at that.