Australian Stock Market Report - Morning 02/03/2012
US Chain store sales rose by a healthy 4.8 in January compared with a year ago. US jobless claims fell by 12,000 to 367,000 last week. The number of people still receiving unemployment benefits fell by 130,000 to 3.4 million - the lowest since September 2008.
US non-farm productivity rose by 0.7pct over 2011 - marking the slowest rate since 2008. Unit labour costs rose at a 1.2pct rate in the fourth quarter against expectations of 0.8pct. The increase in wages pointed to moderate inflationary pressures.
European shares lifted to fresh six-month highs on Thursday in response to encouraging economic data in the US. Gains were capped as the FTSEEurofirst index failed to break a major resistance level on the back of no resolution to the Greek private debt swap. French and Spanish bond auctions were met with healthy demand. Spain sold €4.56 billion of 2015, 2016 and 2017 bonds. Yields were significantly lower than in late 2011. The FTSEurofirst index rose by 0.2pct, with the UK FTSE up 1pct and the German Dax lifted by 0.6pct.
US sharemarkets mixed on Thursday as investors awaited the employment data released tonight. Technology shares outperformed the broader market after Qualcomm (up 2.2pct) reported higher than expected profits and its shares hit a 12-year high. At the close of trade, the Dow Jones was lower by 10pts or 0.1pct. The S&P 500 was up 0.1pct while the Nasdaq rose by 11pts or 0.4pct.
US long dated treasuries erased most of the earlier losses on Thursday (yields lower) as investors focused on the highly anticipated jobs reports that is expected to show employers added 150,000 jobs in January. US 2yr yields were flat at 0.226pct and US 10yr yields fell by 1pt to 1.823pct.
The Euro surrendered early gains against the US dollar given the lack of a resolution on the Greek sovereign debt crisis. The Euro fell from highs near US$1.3190 to US$1.3100, and was near US$1.3145 in late US trade. The Aussie dollar rose from lows around US106.90c to US107.40c, and was near US107.05c in late US trade. And the Japanese yen traded in a tight range between 75.95 yen per US dollar to JPY76.20 and was near JPY76.15 in late US trade.
US crude oil prices fell on Thursday as the previous day´s data showing a build in oil inventories continued to drive prices lower. Nymex oil fell by US$1.25 or 1.3pct to US$96.36 a barrel but London Brent crude rose by US51c to US$112.07 a barrel.
Base metal prices were generally weaker on the London Metals Exchange on Thursday in response to continued sluggish demand from top buyer China. Metals fell 0.5-3.3pct with the exception of Tin which was flat. And the gold price rose modestly with Comex April gold up US$9.80 or 0.6pct to US$1,759.30 an ounce.
Ahead: In Australia, the Performance of Services index is released. In the US, non-farm payrolls and factory orders are released.