* US stock markets fell on Friday. Improving US unemployment data, which recorded unemployment at its lowest level since February 2009, was overshadowed by continuing concerns in Europe.
* European stock markets fell Friday. The pan-European Stoxx 600 index closed flat and was 1.2% higher for the week.
* Asian stock markets declined on Friday, as concern that the European debt crisis was deepening overshadowed improving data out of the US.
* Commodities prices traded mixed, as Gold prices closed around $US1,621 and while crude-oil closed around $US102.
The SPI Futures is trading below the key pivot level of 4180, ending up 0.3% (or 12 points) at 4,092. The key levels for our index this week are 4000 to 4180.
Aussie shares are expected to open flat and traders are expected to stay on the sidelines today, after negative leads from the US and European markets, after the US Non-Farm Payrolls report and continuing problems with EU debt.
See below for ASX listed companies in the news today.
US Markets
US stock markets fell on Friday. Improving US unemployment data, which recorded unemployment at its lowest level since February 2009, was overshadowed by continuing concerns in Europe.
In the shortened trading week the Dow Jones Index rose 1.2%, while in the broader markets the S&P500 index rose 1.7%, while the tech-heavy Nasdaq outperformed up 2.7% for the week.
Labor Department data showed US Nonfarm Payrolls increased by 200,000 in December, (versus forecast of 155,000 new jobs). The December unemployment rate dropped to 8.5% (down from a revised 8.7%) and is the lowest reading in nearly three years. However investors focused on on developments in Europe over debt and increasing unemployment concerns.
The ten sectors that make up the S&P index traded mixed, with Materials down -0.2%, Energy down -0.6%, Financials down -0.6%, Industrials down -0.2%, Technology up 0.1%, while Consumer Staples rose 0.1%.
The Dow Jones closed down -0.4% (or -55 points) at 12,359, the S&P 500 index was down -0.3% (or -3 points) at 1,277, the Nasdaq ended up 0.2% (or 4 points) at 2,674 and the smaller cap Russell 2000 was up -0.1%.
European Markets
European stock markets fell Friday. The pan-European Stoxx 600 index closed flat and was 1.2% higher for the week.
Investor sentiment was negative, as there was a focus on developments in the bond markets, where the Italian government’s cost of borrowing money for 10 years remained above 7.17%, where costs above the 7% level are seen as unsustainable over the long term.
Elsewhere economic data for the eurozone showed unemployment rising for a seventh consecutive month, while November factory orders in Germany fell nearly -5%, erasing any gains made the previous month.
In London the FTSE 100 index gained 0.5% as Vodafone Group PLC shares climbed 1.2%, after Goldman Sachs upgraded the mobile operator to “Buy” from “Neutral”, saying it sees a potential total return of 55% over the next two years.
The FTSE 100 index closed up 0.5% (or 25 points) at 5,650, the German DAX was down -0.6% (or -38 points) at 6,058 while in France the CAC was down -0.2% (or -8 points) at 3,137. Spain was down -0.5% and Italy ended down -0.8%.
Asian Markets
Asian stock markets declined on Friday, as concerns that the European debt crisis was deepening overshadowed improving data out of the US.
Most markets closed down over -1.1% for the session, as financial stocks continue to be weighed down by concerns over the eurozone debt crisis. Chinese stocks did advance on Friday as energy producer PetroChina jumped after Beijing raised a threshold of its “windfall” tax, effectively reducing tax payments for oil producers. Banks and resource stocks also rose as bargain hunters stepped in after sharp recent losses.
In China the Shanghai Composite is trading around 34-month lows, which is a major concern for 2012. China has been seen as the engine for global growth and the government is still in the throws of engineering a “soft” landing, which is becoming increasing dificult to orchestrate.
In China the SSE Composite closed up 0.7% (or 15 points) at 2,163, while in Hong Kong the Hang Seng Index was down -1.2% (or -220 points) at 18,593 and in Japan the Nikkei 225 Index was closed down -1.2% (or -98 points) at 8,390. The South Korean KOSPI was down -1.1% for the session.
Commodities
The Dollar Index was higher at 81.25 on a lower Euro, while the Australian Dollar last traded lower at 1.02. Commodities prices traded lower.
For the session the benchmark crude NYMEX for January delivery was down -0.3% (or -0.25) to settle at $US101.93. Copper prices are seeking a support level as Copper for January delivery was up 0.3% (or 0.9 cents) at $US3.4275. January gold was down -0.2% (or -$US3.30) at $US1,621.
ASX News Today
BNO – Bionomics has signed a $345 million deal with US company Ironwood Pharmaceuticals to develop a potential anti-anxiety drug.
SUN – Suncorp Group says it expects natural hazard costs for the last half of 2011 to be in the range of $360-$420 million, as claims from the Christchurch earthquake and Melbourne hailstorm come in.
TPI – Transpacific Industries Group is being sued for more than $4.6 million by its former boss and major investor in relation to the company’s equity raising.
WRG – Water Resources Group, the the water treatment company, surged over 70% after its subsidiary signed a $US95 million deal to supply water in Africa.
Ex-dividend Date
None
Market Summary
ASX – to open lower
US & UK/Europe – lower
Commodities Stock Index down -0.8%
Gold Stocks Index dow -0.8%
Oil Stocks Index down -0.6%
US ADRs – Broadly Lower
BHP down -1.3% & RIO down -1.0%; AWC down -2.2%
ANZ down -1.5% & NAB down -2.2%
NEM down -0.2%, JHX down -2.4%, NWS down -0.6%
By Michael Hevern
Head of Research
For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.
