Australian Stock Market Report
US jobless claims fell to two-year lows in the latest week, falling by 29,000 to 429,000. But industrial production growth slowed in the latest month, up just 0.1pct in June, just short of the 0.2pct growth forecast. US producer prices fell by 0.5pct in June with the core rate (excluding food and energy) up 0.1pct. Producer prices are up 2.8pct on a year ago.
The US Philadelphia Fed index eased from +8.0 to +5.1 in July and the Empire State gauge for the New York region fell from +19.57 to +5.08 in July.
European shares fell for the second day on Thursday with mixed economic data in the US offsetting positive earnings news from JP Morgan. The FTSEurofirst index fell by 1.1pct with the UK FTSE down 0.8pct and the German Dax down 1.0pct higher.
US sharemarkets again strengthened in late trade to close largely flat. Energy stocks drove the improvement in late trade as BP indicated success in capping the oil leak in the Gulf of Mexico. The Senate also passed the Financial Reform bill late in the day. The Dow Jones gained 90 points in the last 30 minutes of trade to finish 7 points weaker. The S&P 500 rose by 0.1pct while the Nasdaq fell by less than 1 point or less than 0.1pct. After the bell Google reported worse than expected earnings while Advanced Micro Devices beat consensus forecasts. Goldman Sachs settled its dispute with the Securities and Exchange Commission.
US treasuries rose on Thursday (yields lower) in response to mixed economic data. US 2yr yields hit record lows in the session, ending flat near 0.61pct with US 10yr yields down 5 points to 3.00pct.
The US dollar fell against major currencies in response to weaker US economic data. The Euro rose from the start of the European session and this continued in US trade lifting from lows around US$1.2715 to US$1.2945, before ending US trade near its highs. The Aussie dollar traded between lows of US87.30c and US88.45c, ending the US session near US88.30c. And the Japanese yen strengthened from 88.25 yen per US dollar to JPY87.25, ending US trade near JPY87.50.
US crude oil prices eased modestly on Thursday with mixed economic data offsetting a weaker greenback. The Nymex crude oil contract fell by US42c to US$76.62 with London Brent crude down by US67c to US$76.10 a barrel.
Base metal prices were generally slightly weaker on the London Metal Exchange on Thursday. Zinc lost 2.3pct and lead lost 1.6pct but aluminium rose 0.5pct and nickel was flat. But the price of gold again rose modestly as the greenback fell. The Comex gold price rose by US$1.30 an ounce to US$1,208.30.
Ahead: In Australia, there are no key events. In the US, data on consumer prices and consumer sentiment are released. Bank of America, Citigroup and General Electric report earnings.
Provided by Comsec.com.au