Australian Stock Market Report - Morning - 04/13/2012
MORNING REPORT
(7am AEST)
US jobless claims rose by a surprising 13,000 to 380,000 last week - a two-month high. Economists had expected weekly claims to fall to 355,000. The US trade deficit shrank by 12.4pct to $46 billion in February, as exports hit a record high. It was the biggest monthly decline in the trade shortfall since May 2009.
US producer prices were unchanged in March after advancing by 0.4pct in February. Core producer prices (excluding food & energy costs) rose by 0.3pct in March. In the year to March producer prices increased by 2.8pct - the smallest gain since June 2010.
European shares rose to a one-week closing high on Thursday, as speculation mounted that Chinese growth figures could come in better than expected. Mining stocks led the gains with the STOXX Europe 600 Basic Resources index up 3pct. Investors also kept a close eye on European debt auctions. Italy´s 3yr bond auction managed to raise near the upper end of the targeted €3 billion, but the yield rose to 3.89pct - the highest since mid-Jan. The benchmark FTSEurofirst 300 index rose by 1.1pct with the German Dax up 1.0pct. The UK FTSE rose 1.3pct.
US sharemarkets soared on Thursday, as investors shrugged of the weak jobless claims figures and bid up equities ahead of the Chinese GDP figures. Mining and energy stocks led the gains, with the S&P material sector up 2.8pct. The rally pushed the S&P 500 back above its 50-day moving average. At the close of trade, the Dow Jones was higher by 181pts or 1.4pct with the S&P 500 up by 1.4pct while the Nasdaq rose 39pts or 1.3pct.
US long-dated treasuries eased on Thursday (yields higher) as investors switched to equities. US 2yr yields were flat at 0.29pct and US 10yr yields rose 2pts to 2.06pct.
The Euro and commodity currencies rallied against the greenback on speculation of further US Fed stimulus. The Euro rose from lows near USS$1.3105, to highs near US$1.3210 and was holding near US$1.3190 in last trade. The Aussie dollar rose from lows around US103.60c to US104.45c and was near US104.40c in late US trade. And the Japanese yen traded between 81.15 yen per US dollar to JPY80.70 and was near JPY80.85 in late US trade.
Benchmark crude oil prices rose for a second straight session on Thursday. Speculation that the Chinese growth number will come in ahead of forecasts provided the main boost for riskier asset classes like commodities. US Nymex crude rose by US94c or 0.9pct to US$103.64 a barrel. While London Brent crude rose US$1.53 to US$121.71 a barrel.
Base metal prices were mostly stronger on Thursday with Nickel leading the gains up 3.3pct. Supporting commodities was news that China´s bank lending trumped forecasts and spiked to 1.01 trillion in March - the highest reading since Jan 2011. And the gold price recorded healthy gains. April Comex gold price rose by US$20.30 or 1.2pct to US$1,680.60 an ounce.
Ahead: In Australia, no economic data is released. In the US, consumer prices and confidence figures are released. Chinese GDP, retail sales and industrial production are set for release.