Australian Stock Market Report - Morning 18/01/2011
The German finance minister Wolfgang Schaeuble has said that there is no immediate need to increase the size of the euro-zone rescue fund. However he says that euro-zone finance ministers could discuss medium-term plans for the fund when they meet later today.
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European shares ended mixed ahead of the meeting of euro-zone finance ministers. Mining shares continued to ease. In London trade shares in Rio Tinto lost 1.2pct while BHP Billiton lost 0.4pct. The FTSEurofirst index rose by 0.1pct, but while the UK FTSE was lower by 0.3pct , the German Dax rose by 2pts or less than 0.1pct.
Apple chief executive Steve Jobs has been granted medical leave of absence from the company. In German trade overnight shares in Apple fell by 6.2pct.
US financial markets were closed for a public holiday on Monday. On Friday the Dow Jones index rose by 55.5pts or 0.5pct to 30-month highs with the S&P 500 up 0.7pct to 28-month highs and the Nasdaq rose by 20pts or 0.7pct. US 2yr yields were steady near 0.58pct on Friday and US 10yr yields rose 3pts to 3.33pct.
Major currencies were mixed against the US dollar in choppy European and north American trade on Monday. The Euro held between US$1.3245 and US$1.3340, ending trade around US$1.3295. The Aussie dollar rose from lows near US98.60c to US99.60c, before ending trade near US99.45c. And the Japanese yen held in a wide range from 82.35 yen per US dollar to JPY83.45, ending trade near JPY82.75.
US crude oil prices fell on Monday as OPEC oil ministers indicated that the market was well supplied with oil. In its monthly report, OPEC blamed recent price increases on investment demand for commodities and harsh winter weather across Europe and the US. The UAE oil minister Mohammed al-Hamli said: ´´The price keeps going up and down and all I can say for now is that we are happy.´´ The Nymex crude oil contract fell by US51c to US$91.03 a barrel while Brent crude fell by US87c to US$97.51 a barrel.
Base metal prices fell on the London Metal Exchange on Monday as investors digested the latest attempts by Chinese authorities to keep inflationary pressures in check. Lead lost 1.4pct and aluminium lost 1.5pct but other metals fell just 0.1-0.2pct. But the gold price was largely stable with spot futures prices around US$1,361 an ounce.
Ahead: In Australia, long-run data on alcohol consumption is released. The Housing Industry Association releases its quarterly land report. Rio Tinto and Fortescue release quarterly production figures. In the US, the Empire State manufacturing survey is released together with capital flows data.
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