Australian Stock Market Report
US producer prices rose by 0.4pct in September, above expectations for a 0.2pct gain. But the core rate rose just 0.1pct, in line with expectations. The US trade deficit for August printed at US$46.3 billion, above forecasts for a deficit of US$44.5 billion. And jobless claims rose by 13,000 to 462,000 in the latest week, above expectations for a result near 450,000.
European shares eased on Thursday with weakness in the banking sector outweighing gains by miners in response to higher metal prices. The FTSEurofirst index fell by 0.2pct, but while the UK FTSE fell by 0.4pct, the German Dax rose by 0.3pct.
US sharemarkets ended slightly lower on Thursday with weakness in financials, materials and industrial stocks. Shares in Bank of America fell 5.2pct while JP Morgan lost 2.8pct. The Dow Jones fell by 1.5pts or less than 0.1pct with the S&P 500 down 0.4pct and the Nasdaq eased by almost 6pts or 0.2pct.
US treasury prices fell (yields higher) on Thursday following a poorly received $13 billion auction of 30yr treasury notes. US 2yr yields rose by 1pt to 0.38pct while US 10yr yields rose 6pts to 2.51ct.
The Aussie dollar got stage fright overnight, reaching highs of US99.94c but failing to hit parity against the greenback. The Aussie dollar eased from these highs over the European and US sessions to US99c before ending US trade near US99.40c. The Euro traded between US$1.4040 and US$1.4115, ending US trade near US$1.4080. And the Japanese yen strengthened to fresh 15yr highs of 80.95 yen per US dollar before easing to JPY81.60, ending US trade near JPY81.45.
US crude oil prices eased on Thursday in response to the weak jobless claims data. But providing support was weekly inventory data that showed an unexpected fall in crude stocks. OPEC as expected kept oil output targets unchanged. The Nymex crude oil contract fell by US32c or 0.4pct to US$82.69 a barrel. London Brent crude fell by US11c a barrel to US$84.53.
Base metal prices were mixed on the London Metal Exchange on Thursday as the US dollar weakened against a basket of currencies. Copper went against the trend touching its highest level in more than two years. Copper rose 0.4pct and zinc lifted 0.2pct. Other metals lost between 0.1pct and 1.0pct. And the spot gold price hit fresh highs of US$1,387.10 an ounce overnight. The Comex gold futures price ended firmer by US$7.10 an ounce to US$1,377.60.
Ahead: In Australia, no economic data is released. In the US, consumer prices, retail sales, business inventories and empire manufacturing data is released. Also Federal Reserve Chairman Ben Bernanke delivers a speech.