Australian Stock Market Report - Morning May 5, 2015
- In US economic data, factory orders rose by 2.1% in March in line with forecasts but it was still the biggest gain in eight months. The ISM New York index rose from 677.6 to 681.7 in April.
- European shares rose on Monday, supported by better-than- expected German economic data. The Markit purchasing manager's index (PMI) for Germany was revised up from a preliminary reading of 51.9 to 52.1 in April. And the Euro zone PMI showed employment increasing at the fastest pace for almost 4 years. The FTSEurofirst 300 rose by 0.6% with the German Dax up by 1.4% The UK market was closed for a holiday.
- US sharemarkets rose sharply at the start of trade and then consolidated in tight ranges over the remainder of the session. Shares in Berkshire Hathaway rose by 1.6% in response to earnings data but shares in McDonald's fell 1.7% after a revamp to strategy failed to excite. After being up 109 points, the Dow Jones finished higher by 46 points or 0.3%. The S&P 500 index was up by 0.3% and the Nasdaq rose by 11.5 points or 0.2%.
- US long-term treasury prices fell on Monday (yields higher) in response to positive US and European economic data. US 2 year yields were flat at 0.603% while US 10 year yields rose by 3 points to 2.144%.
- Major currencies were mixed against the greenback over the European and US sessions on Monday. The Euro fell from highs near US$1.1220 to lows near US$1.1125 and ended US trade around US$1.1145. The Aussie dollar rose from lows near US78.20c to highs near US78.50c before ending US trade near US78.35c. And the Japanese yen traded between 119.98 yen per US dollar and JPY120.27 and was around JPY120.15 at the US close.
- World oil prices eased modestly on Monday with prices pressured by a stronger US dollar and news that Saudi Arabia planned to halt bombings in Yemen. Supporting prices was stronger US economic data and expectations that data will show a further tightening of supplies in the US. Brent crude fell by US1 cent to US$66.45 a barrel while US Nymex crude fell by US22c or 0.4% to US$58.93 a barrel.
- The London Metal Exchange was closed for a holiday so there are no base metal quotes. The Comex gold futures price rose by US$12.30 an ounce or 1.0% on Monday to US$1,186.80 per ounce. Iron ore rose by US$1.60 or 2.8% on Monday to US$57.80 a tonne.
Ahead: In Australia, the Reserve Bank Board meets to decide interest rate settings. Weekly consumer sentiment data is released
with international trade. In the US, international trade and the ISM services index are released.
[Kick off your trading day with our newsletter]
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
MEET IBT NEWS FROM BELOW CHANNELS
Editor's Pick