Presented by Michael Hevern
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Good Morning and Welcome to Cube Wrap for Thursday, the 25th of September, 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.
Once again we saw the DOW drift down. It is looking to test the lows of last week. All eyes will be on the DOW to see though it does not reach that level.
We see in the new group being put before Congress and suspected it is taken a while to see through. The DOW was down 3% for the session. So, S&P 500 down 1.2% and the NASDAQ up 0.1%.
It saw some gains in the NASDAQ with the Apple up 1.5%, Microsoft up 1.1% and Cisco up 0.3% on the session. Of interest, with the ASX, ADRs for BPH down 1% and the RIO of 0.6%.
We saw James Hardy down 3.5% gave back most of the gains it has had for the last few days. ResMed up 1.5% and the banks, ANZ and NAB up 4.9% and 6.3%. That made a bit of the catch up for out market on the trading session yesterday.
We will see that in the UK, the market there was drifting down as well. You can trace 50% of that spike up for the last week and again all eyes will be checking whether it can hold. Initially, the current level, which goes back to July and the spike down from last week, still above that 5000 mark it’s been pressing by week oil price and commodities were down as well. We saw in Japan, the market was up slightly which is a bit of a surprise given that we did have the whole day on the previous session. Other sovereign funds actually stepped into the market a bit early and if the rescue proposal can come into provision in the US, it might be a good time to start picking up assets and market based prices. We will see that Hong Kong was up 0.5% and Chinese shares were up slightly up 0.7% on the session.
In the commodities, we saw oil drift back a dollar to 107, still above the 100 dollar mark a day, the oil was down that did impact on price obviously. In the gold market, we saw gold up over 895 dollars on the oil price and the weak US dollar. Rest of the commodities was down generally with copper down 1%, lead down 0.3%, zinc up 1.1%, aluminum and nickel down 0.3% and 0.05% respectively. We saw a sell off in the stock commodities as well with Wheat down 2.7% and Corn up slightly 0.4%.
In our market, we see that the ASX is set open high again today. The market is trading around the 5000 mark in the all ords and just below that in the ASX 200. We do not really have a lead from the US those with convictions and this is the low time to pick up stocks. We are closing the gaps that we made last week and stocks like RIO has closed the gap. NAB has recovered quite considerably from last week’s sell off and it is starting to get on the right of the broken shares as well and they are saying that they are not likely to have to raise small capital short term and they are looking to sell off assets into the plan if and when it does appear, SPI was down 34 point.
Elsewhere on the ASX there are rumors that the short selling ban will be lifted sooner rather than later. Financials likely to consolidate on the market.
RIO and BHP likely to weigh just stock prices of the weaker commodity prices. The ADRs were, BHP was down 1%, RIO up 0.2%, gold stocks were likely to offer support mostly and Newcrest in the last couple of weeks and you expect to be the consolation around these levels.
Today the giants continues to confound the retractors with the evening DOW up 25%, profit up 25%, and they have also increased the dividend. So an excellent report there. Sum has been placed on the radar by Deutchse Bank, they have upgraded to buy given the considerable sell off that that particular stock has suffered in the last few weeks saying that the current evaluations pay on the banking units around that 5 times of earnings and the insurance part of this is trading around 30% discount to that of IAG. So, obviously fundamentally that should bode well for the Suncorp network price.
ASX will open lower today, but those with the conviction that we are seeing a bottom here will be looking to buy into this market, look for stocks with cash on the books and low debt and good possibilities going forward.
Should you have any questions about the information provided, please call the equities and options desk or CFD trading advising desk on the numbers provided, and trade carefully.