Australian Stock Market Report - Morning
The Chicago purchasing managers index for December was revised down from 68.6 to 66.8, but this is still well up on the 61.9 reading in November.
The US Federal Reserve has unveiled record net income of US$80.9 billion from securities trading in 2010. The Federal Reserve will remit US$78.4 billion of the income to Treasury and the remittance is up $31 billion on a year ago.
[Get this delivered on your inbox for FREE. Subscribe to our daily Markets Newsletter.]
Atlanta Federal Reserve President Dennis Lockhart has expressed optimism about the economic outlook, saying that the ´´economy seems to have gained durable momentum as we begin 2011.´´
European shares fell on Monday on investor caution ahead of debt auctions by Portugal, Spain and Italy in coming days. In corporate news, US chemicals group Du Pont will buy Danish food ingredients company Danisco for US$5.8 billion. The FTSEurofirst index fell by 1.0pct, with the UK FTSE lower by 0.5pct while the German Dax lost 1.3pct.
US sharemarkets were mixed on Monday on investor caution ahead of the start of earnings season. In corporate news Duke Energy will buy Progress Energy for US$13.7 billion to create the largest utility in the US. Shares in Sara Lee rose 3.8pct on speculation that a group of private equity firms is interested in a buyout of the company. At the close of trade, the Dow Jones index was lower by 37pts or 0.3pct with the S&P 500 down 0.1pct but the Nasdaq was up by 4.6pts or 0.2pct.
US treasuries rose on Monday (yields lower) after the Federal Reserve purchased US$7.79 billion in debt due between 2018 and 2020. US 2yr yields fell by 3pts to 0.573pct and US 10yr yields fell 4pts to 3.285pct.
The US dollar was again mixed against major currencies on Monday. The Euro rose from lows near US$1.2875 to US$1.2965, heading into the US close near US$1.2950. The Aussie dollar traded between US98.80c to US99.70c, and was near US99.55c in late US trade. And the Japanese yen lifted from near 83.25 yen per US dollar to JPY82.65, and was near JPY82.75 in late US trade.
US crude oil prices rose on Monday after the Trans Alaska Pipeline was closed due to a leakage at a pump station booster. The pipeline carries around 12pct of domestic crude output. The Nymex crude oil contract fell by US$1.22 or 1.4pct to US$89.25 a barrel. Brent crude rose by US$1.96 or 2.1pct to US$95.29 a barrel.
Base metal prices again eased on the London Metal Exchange on Monday. Metals lost between 1.1-2.8pct with copper faring best and zinc down the most. But the gold price rose modestly as safe haven demand returned with the Comex gold futures price higher by US$4.00 an ounce to US$1,372.90.
Ahead: In Australia, international trade figures are released. In the US data on wholesale inventories is scheduled together with weekly data on chain store sales.
More from IBT Markets:
Subscribe to get this delivered to your inbox daily
Follow us on Twitter.
Follow us on Facebook.