Click here to watch the presentation.
or
Click here to download the mp3 audio recording (1099Kb).
Transcription below:
*****************************************************************************
Good Morning and welcome to Cube Wrap for Thursday the 27th of November. 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, it is general advice only.
Stock Market Analysis
Well, Dow took another slide this morning pushing its head up against that downtrend line and managed to close above that and is down 5% and lot of that selling was down in the last out trading. We saw the autos weigh. The Fed has revised the quarter figures up to 7.5% for 2009 that was up from 5% the previous 6 months. This concern about the visibility, volatility, and buyers down. US market finished at 12.5 lows and 98% of the volume that was traded was traded to the downside, so that all were 0.2, further weakness seen in the market.
We see that the NASDAQ was down 5% as well and we also saw yahoo gets sold down and it was closed to 20% with down 2 dollars on the session. Very nice technical move for the last 10 days and it is not very good for the world as it steadily controls and also trekking the low out of that which can continue for sometime.
US Markets
Elsewhere in the US, the key stories were that the Feb are releasing minutes for their previous meeting, saying that they are open to more rate cuts, we will see how that unfolds. US trying on construction and consumer prices dived with October highs starts stumbling to ripple low from 4.5% is easily adjusted and US consumer prices take the biggest months in 61 years, dropping 1% to significantly adjusted 9%.
The autos exerts in Washington at the moment trying to get the hands on some of the bailout package money and also trying to get all of it as soon as possible. We also see that the standard portraying industry saying that they haven’t risen to 4.2% for September shooting a new high and the average is 3.9% for the third quarter.
We also saw that there was investing concerned about the 700 million dollar package not being enough to stabilize the markets going forward and that may be even more impotence for getting holds of more money going forward. We saw Citigroup shared 14% to that level since 1995, and financials sent its way liberally with the financials with the index down 7% on the session.
In the NASDAQ, we saw Apple down 4%, Microsoft down 7% and Cisco down 8% on the session. The FTSE in the UK was down close to 5%. It is below the mid levels of that support level that it managed to hold for those days, but it closed below that on the close. We saw energy pulled back considerably on the back of that gain, so that had previous session. The Bank of England has also said that they are open to more and more rate cuts and will continue to cut as necessary.
Energy Stocks
Energy stocks, we see BP, Shell, and BG group all down between 3.5% to 6% on the session on the back of oil prices. We saw banks better yet again as J.P. Morgan has slightly turning customers.
European Markets
On the UK banking sector, we see HSBC down 9%, Barclays down 13%. We see Lloyds down 9% as well. Investors were also sold down almost 10% as Lloyds bank cutting price tag and going forward. The miners weren’t spared either all down in between 12% and 18% on the session. That’s not going to go very well for our miners either.
The CAC was down 4% and the DAX was down 5% on the session. Chemical stocks is a big story in Europe as BASS said it will temporally shot down 80 plants world wide and production of another 100 plants as it announced that its profits was sliding and so that may be some excuse as to why articles sold off so heavily yesterday. We saw BASF plunge 14% on the back of that news and elsewhere stocks were also under heavily selling pressure in Europe.
Asian Markets
We see that in Asia, the Nikkei did perform too bad and is down 0.7%. Exporters suffered on the back of stronger Yen, but banks did come under pressure as financial group was reportedly to raise about 4.1 million dollars going forward and weighted on the other financials as well with Mitsui down 6% on the session.
Elsewhere in Asia, we see that Hong Kong was down 8.8% and Chinese shares are also down over 6% on the session. We see that in the commodities market that oil continues to slide looks like it’s going to test the flowing trend line there at a 22-month lows. The inventories have risen in the US for the eight straight weeks so that continued to give pressure on the oil price. Gold was fluctuating somewhat due to the weaker US dollar, but it could be some fairly flat as 735 on the session. Doesn’t really know which way to go there you can see on the chart, it is just trading in the top range and it does break outside and it will be fairly exposing. We are unsure as to how long that will take to be with being in there for approximately twenty trading days at the moment, so you expect it to be closing atone way or the other.
We see that in the ASX our market was down and finished below the 3500 level obviously with testing that down trend line again. Interestingly was SPI was down 165 and around about 4% overnight and so that’s not very good for our markets and we saw broad-based selling in the ADRs as well. We see AWC and Alumina down 17% on the session. The insurer AIG was down 20% in the US.
BHP and RIO were down 10% and 11% and Chevron and Exxon which were up previous session with both down 3.8%. Gold stocks index was down 6% and the oil stocks index down 5.6%. We also see that in gold miner in the US is down 5% on the session. Our markets we see that all the commodities are down as well with silver down 3.5, aluminum down 2%, lead down almost 6%, copper down 4.3%, and nickel down 5%, and zinc down 4%. But it is worth saying that analysts are predicated Zinc will be in for a short coming rally in the next few sessions so that we need to watch.
In news in our market we have the removal of the short selling ban in our market yesterday and as expected we saw the bear step in there continued to be in the news. Macarthur Coal came up said that they are expecting their Iron or Coal to fall in the next 12 months based on the back of lower world steel production, so that was lots of that will be affected there will be the other coal miners also. The steel makers in Australia such as CSR have risen to 315 million dollars, but it was at a discount to the uploading price. Oz minerals have responded to ASX queries and have announced a profit warning they were sold down heavily yesterday. Babcock and Brown are going through yet another restructure selling and asset sales in attempt to appease their bankers and BHP due to announced project confirm that they are going to proceed that market was down especially since the reduction has made, were not sure what the cost will be and were going for a lower economic demand, you will expect that the demand on that facility will actually be ascending at the moment but I guess you need to look at the big picture and they have actually promised the miners that will expand the port facilities so it will be interesting to see how that proceed. Telstra futures goes out of escrow today and we expect that market to open tomorrow with broad-based selling there is a special report that wave published and you can read reports on stocks you should be wary of.
Should you have any questions about the information provided within this presentation, please call the equities options desk of the CFD advising desk on the numbers provided, as always trade carefully.
By Michael Hevern
Cube Financial
