Australia Stock Market- Morning Report 02/07/2012
German factory orders rebounded by 1.7pct in December following a 4.9pct fall in November. Factory orders were flat over the year to December. Meanwhile the US employment trends index rose from 105.0 to 105.8 in January.
International Monetary Fund chief economist Oliver Blanchard said that the ´´haircut´´ to be applied to the debt of Greek private creditors ´´will be very large.´´
European shares eased slightly on Monday on continued uncertainty about the Greek debt situation. The FTSEurofirst index fell by 0.1pct, with the UK FTSE down 0.2pct while the German Dax fell by almost 2pts or less than 0.1pct.
US sharemarkets eased modestly on Monday as investors elected to take some profits on recent gains in the absence of market-moving economic or corporate data. At the close of trade, the Dow Jones was lower by 17 points or 0.1pct with the S&P 500 down less than 0.1pct and the Nasdaq eased 3.7pts or 0.1pct.
US treasuries rose (yields lower) after investors booked profits on positions in equities and commodities markets and bought US government bonds. US 2yr yields were steady near 0.234pct and US 10yr yields fell by 3pts to 1.896pct.
The US dollar eased against major currencies in late European trade and over the US session. The Euro rose from lows near US$1.3025 to US$1.3140, and was near US$1.3130 in late US trade. The Aussie dollar rose from lows near US106.80c to US107.40c, and was near US107.30c in late US trade. And the Japanese yen lifted from 76.79 yen per US dollar to JPY76.49 and was near JPY76.58 in late US trade.
World crude oil prices were mixed on Monday. US prices eased in line with general profit-taking across equities and commodities markets. But the UK Brent price rose in response to increased demand for heating oil as a result of bitterly cold weather in Europe. The US Nymex oil price eased by US93c or 1.0pct to US$96.91 a barrel but London Brent crude rose by US$1.35 to US$115.93 a barrel.
Base metal prices were generally lower on Monday as investors took profits on recent gains on equities and commodities markets. Metals fell between 0.8-2.2pct but tin rose 0.4pct and nickel gained 1.8pct. And the gold price eased again with the Comex April gold price lower by US$15.40 or 0.9pct to US$1,724.90 an ounce.
Ahead: In Australia, the Reserve Bank meets to decide interest rate settings. National Australia Bank and Macquarie Bank release trading updates.
Earnings are expected from Bradken, Transurban and Cochlear. In the US, consumer credit and weekly retail sales data are released.