Australian Stock Market Indicators 06/17/2011
The Philadelphia Fed manufacturing index fell to a two year low easing from +5.4 to -7.6 in June. The result was well below expectations with analysts expecting a reading around +16.8. Across the sub indices, new orders were substantially weaker while inventory levels also fell.
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US jobless claims fell by a larger than expected 16,000 to 414,000 in the last week. US housing starts rose by a better than expected 3.5pct in May to a 560,000 annual pace. New building permits also unexpectedly rebounded by 8.7pct to a 612,000 annual pace - the highest level since December.
European shares fell to a three-month closing low on Thursday as the uncertainty over a second Greek bailout package hurt investor sentiment. The IMF said continued financial support for Greece was subject to Athens adopting already agreed reforms. The Greek banking index fell to 15-year lows. The STOXX Europe 600 banking index fell a further 1.1pct. The FTSEurofirst index fell by 0.4pct, the German Dax lost 0.1pct, and the UK FTSE fell 0.8pct.
US sharemarkets rallied in a volatile trading session on Thursday. The expiration of stock-index futures and equity options saw the S&P500 swing more than 1pct from its session lows. The S&P materials sector lost 0.9pct, reflecting the slide in the copper price and the weak factory data. The VIX or ´´fear gauge´´ rose 6.6pct. The Dow Jones rose 64pts or 0.5pct, while the S&P500 index gained 0.2pct but the Nasdaq lost 0.3pct.
US long-dated treasury prices rallied (yields lower) on Thursday as the Greek debt worries fuelled safe-haven buying of US bonds. US 2yr yields were steady at 0.384pct and US 10yr yields lost 4pts to 2.927pct.
The Philadelphia Fed manufacturing index fell to a two year low easing from +5.4 to -7.6 in June. The result was well below expectations with analysts expecting a reading around +16.8. Across the sub indices, new orders were substantially weaker while inventory levels also fell.
The Euro rebounded in late trade against US dollar on Thursday as buyers moved in given the recent sell-off. The Euro rose from lows near US$1.4075 to highs near US$1.4195, ending US trade near its highs. The Aussie dollar rose from lows near US104.80c to near US105.60c before ending US trade near US105.40c. And the Japanese yen traded between 80.50 yen per US dollar to JPY80.90, ending US trade near JPY80.60.
US crude oil prices recorded modest gains on Thursday after the IEA forecast global refinery crude demand would rise sharply in the third quarter. The IEA added that higher demand and reduced spare OPEC capacity will leave oil markets under greater strain than previously thought. The Nymex crude oil contract rose by US14c a barrel on to US$94.95 a barrel. And London Brent crude rose by US$1.01 to US$114.02 a barrel.
Base metal prices were all weaker on the London Metal Exchange on Thursday. However the gold price rose with Comex gold futures up by US$3.70 an ounce to US$1,529.90.
Ahead: In Australia, no economic data is expected. In the US, the leading indicators index and the University of Michigan confidence index are released.
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