Australian Stock Market Report - Morning
US Conference Board´s leading economic indicator rose 1.1pct in November - the biggest rise since March and the fifth straight monthly gain. Separately the Economic Cycle Research Institute said it gauge of future growth had risen to its highest level since May.
European shares ended lower on Friday. Banks led the declines after rating agency Moody´s cut Ireland´s credit rating by five notches from Aa2 to Baa1 and also warned that further downgrades could follow if Ireland was unable to stabilise its debt situation. Retail stocks were sharply weaker as broker downgrades affected the sector. The FTSEurofirst index fell 0.4pct, with the UK FTSE down 0.2pct and the German Dax lower by 0.6pct.
US sharemarkets were mixed on Friday. Volumes improved due to traders adjusting positions as four different type of futures and options contracts expired. The CBOE volatility index fell by 7.4pct to the lowest level in almost nine months. At the close of trade, the Dow Jones was lower by 7pts or 0.1pct with the S&P 500 up 0.1pct and the Nasdaq stronger by 6pts or 0.2pct. Over the week the Dow rose by 0.7pct while the S&P 500 was up 0.3pct and the Nasdaq finished higher by 0.2pct.
US treasuries rallied (yields lower) on Friday as buyers took advantage of the recent rise in yields to purchase debt. The US Fed also bought $2 billion in longer-term treasuries adding to the slide in yields. US 2yr yields fell by 4pts to 0.61pct and US 10yr yields lost 8pts to 3.34pct. Over the week US 2yr yields fell by 4pts and US 10yr yields were unchanged.
The US dollar rallied against the Euro following Moody´s downgrade on Ireland. Budget warnings by the IMF also added to the weakness in the Euro. The Euro fell from highs near US$1.3350 to US$1.3135, ending US trade near US$1.3185. The Aussie dollar fell from highs near US99.15c to US98.35, and was near US98.85c in late US trade. And the Japanese yen traded between 83.70 yen per US dollar and JPY84.20, and was around JPY83.95 in late US trade.
US crude oil prices rose on Friday in a volatile trading session. Oil prices received mixed signals as the better than expected US economic data was offset by the sovereign debt issues in Europe. The Nymex crude oil contract rose by US32c or 0.4pct to US$88.02 a barrel. Oil rose by 0.3pct over the week.
Base metal prices were higher on the London Metal Exchange. Nickel and Zinc led the gains, both rising 2.5pct, while other metals rose between 0.8-1.2pct. The gold price fell on the back of the strengthening US dollar. Comex gold futures added US$8.20 an ounce to US$1,379.20. Gold fell by 0.4pct over the week.
Ahead: In Australia and the US no economic data is released.
More from IBT Markets:
Get this delivered to your inbox.
Follow us on Twitter.
Like us on Facebook.