Presented by Michael Hevern
MDS Financial
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US Markets Lower Despite Good Unemployment Report
SP500: Down -1.5% at 1,110.2 (down 6.4% for Week)
DOW Down -1.3% at 10,380.4 (down 5.8% for Week)
Financial & Miners Lead Rout
NASDAQ: Down -2.3% at 2,265.6 (down 7.9% for Week)
Plunges in the Week
VIX volatility “fear” index spikes 85% for week.
Higlights Investor Fear
Dollar Index: Surges to 14-month high against the Euro
US$ Higher;
A$ down 89.91c
FTSE: Down -2.6% at 5,123.0 (down 7.7% for Week)
Concerns Over PIGS; ECB Meeting on Action
DAX down 3.7% (down 6.8% for Week)
Oil: Down -2.6% at ($75.41) (down 13% for Week)
Demand Concerns
Breaks Key Level – Focus still on oil spill in Gulf of Mexico
Gold: Up 1.2% at ($1,208) (up 2.3% for Week)
Commodities Lower;
SPI:Critical Level(s): at key 4400 level
Worst Week Since the GFC
ASX set to trade lower
SPI down 49 (-1.1%) at 4425
ASX News
Budget out Tuesday night – expect lower than forecast deficit
Henry Review means materials stocks will remain in focus, with the government saying tax will not damage the sector, and Miners taking the opportunity to shelve projects (citing the Tax Regime).
Iron ore prices already at two year highs may continue to rise, say Chinese Steel Makers.
Thailands’s biggest coal miner, Banpu, takes a 14.9% stake in Centennial Coal (CEY) with the share price rising as much as 25% at one stage. This may reignite focus on MacArthur (MCC).
Gold will be in focus today, including: Lihir and Newcrest; KCN, RSG, Equinox, PNA
U.S. Unemployment at 9.9% but participation is increasing.
Suggested trading straregy is to get small, reduce you exposure to equities, and enjoy those short positions.
ASX – to open lower again
US & UK/Europe – negative leads
U.S. ADRs – See Some Positives
BHP up 1.9% & RIO up 1.3%; AWC up 3.7%
ANZ up 0.1% & NAB down 2.1%
NEM down 2.3%, JHX up 4.0%, NWS down 1.2%
Commodities Stock Index down 1.4%
Gold Stocks Index down 1.3%
Oil Stocks Index down 1.6%
