The Australian dollar has opened weaker this morning currently trading around USD 0.9740, after reversing gains which saw it trade to a high of USD0.9950 during the European session.
It's now clear that gold and silver have emerged as the major casualties of the current sell-off, only 10 days after gold dealers and several leading forecasters predicted the price would top $US2,000 an ounce by the end of the year.
As we pointed out in Air Weekly last Friday, the Asian region is a beacon of economic growth and stability, despite the shockwaves from the eurozone and the stuttering US economy rolling over the area.
All good things have to come to an end and unfortunately the S&P 500 could not make it four out of four successive gains. US equities saw selling right up until the close, with the bears easily winning the session. The NASDAQ was the worst performer, losing 2.2% while the S&P fell 2.1% and the Dow Jones Industrial Average shed 1.6%.
The Australian sharemarket rose almost one per cent in the second day of gains, as markets recovered from last week's massive losses on hopes of a solution to Europe's debt crisis. However, the market investors remained unsure whether a solution to the crisis could be found amid conflicting media reports. The benchmark S&P/ASX200 index had risen 34.9 points, or 0.87 per cent, to close at 4,039.5, while the broader All Ordinaries index rose 34.2 points, or 0.84 per cent, to 4,097.7.
US durable goods orders fell by 0.1pct in August after rising by 4.1pct in July. Economists had expected a flat result. Non-defense orders excluding aircraft rose by 1.1pct. And applications for US mortgages rose by 9.3pct last week as refinancing demand rose in response to lower mortgage rates. The index of refinancing applications rose by 11.2pct while loans to purchase new homes rose by 2.6pct.
(4.30pm AEST)Investor confidence remained strong today, with the local market managing to hold onto and add to yesterday's 3.5pct gain. Markets around the Asian region were generally firmer, after the Greek parliament approved a contentious property tax law which is crucial to its austerity plan and its commitments to secure bail-out funds. The local share market lost a little steam in afternoon trade but closed higher by 0.8pct, with the All Ordinaries Index (XAO) adding 34.2pts to 4097....
Japanese Finance Minister Jun Azumi announced on Tuesday that his government is willing to shoulder a portion of the burden in connection with the rescue proposal for Greece if the EU can put together a logical plan to reduce market worries.
The European Commission (EC) announced on Wednesday that the European Union has proposed a financial transactions tax that is set to take effect in 2014.
China's massive importation of soybean and rapeseed oil, including palm, is seen to cause a global imbalance in the production and supply chain of the commodity, Hamburg-based researcher Oil World said.
Hopes of a coordinated European bailout plan propelled copper futures to end sharply higher Tuesday, with December delivery reaching 15.65 US cents, or 4.5 per cent, to $US3.4395 per pound on the Comex division of the New York Mercantile Exchange.
Be careful and don't take the sharp rebound in markets for granted or think it's the sudden emergence of an uptrend.
World oil prices has moved up more than 5 percent on Tuesday on encouraging news that European fiscal managers are working overtime on a bailout fund to contain the region's debilitating sovereign-debt crisis.
MIDDAY REPORT (12pm AEST)The Australian sharemarket is gaining for the second straight day with the ASX 200 index (XJO) up 0.5 pct or 20.5 pts to 4025.1 while the broader All Ordinaries index (XAO) is also 0.5 pct or 22.2 pts higher to 4085.7. Shares improved by 3.5 pct yesterday, breaking three consecutive sessions of losses.
A report released by the G-20’s Financial Stability Board is calling on Australian legislators and finance managers to implement measures that will minimize the country’s dependence on the big four banks.
Gold futures on Tuesday regained its foothold after a three-day slide on a weakened U.S. dollar and renewed investor confidence fuelled by encouragement that European fiscal regulators are working overtime on a bailout fund to address the region's debilitating sovereign-debt crisis.
- Campbell Brothers (again) lifts interim earnings guidance- Upgrade reflects continued strength in minerals testing volumes- Brokers lift earnings forecasts- UBS and Macquarie see value at current levelsBy Chris ShawHaving previously guided to 1H12 net profit of $90-$95 million, management at Campb...
Beijing's efforts to revive the six-nation nuclear disarmament dialogue with North Korea will still be pursued amidst China's efforts to continue assisting North Korea in boosting economic and trade reforms, reports Xinhua News Agency.
By Greg PeelBank analysts figured it out a while back, but unfortunately the market has not, particularly foreign investors in the Australian market.
By Greg PeelThe Dow closed up 146 points or 1.3% while the S&P gained 1.1% to 1175 and the Nasdaq added 1.
US home prices were unchanged in seasonally adjusted terms in July. The S&P/Case Shiller 20-city home price index was unchanged in the month but up 0.9pct in unadjusted terms to stand 4.1pct lower than a year ago. US consumer confidence rose from 45.2 to 45.4 in September. And the Richmond Fed manufacturing index improved from minus 10 in August to minus 6 in September.
Australia's stock markets are expected to to see further gains at the open of trade as stocks continue their relief rally. Once again, there is very little in the way of local economic news so sentiment is going to continue to be dominated by the big macro forces in play.
U.S. stocks rose Tuesday, even as a sharp afternoon downdraft prompted U.S. stocks to erase more than half of their earlier gains, as investors fretted over a report that highlighted a potential split in the euro zone over the terms of Greece's second bailout. The Dow Jones Industrial Average finished the session up 146.83 points, or 1.3%, at 11190.69, after surging as much as 325 points earlier in the session. The gains came a day after the blue-chip index climbed 272 points.
A few days after alarming levels of radioactive cesium and iodine 131 were reported near the crippled Fukushima Daiichi nuclear plant, local officials plan to decontaminate homes within 60 kilometers, NHK World News reported.
Across Asia, regional markets are all sharply higher following the strong rebound rally seen in overnight trade amidst renewed hopes the latest plan European officials are working on will help ease the debt crisis. The Kospi is the best performer, up 4.1% while the Shanghai Composite, Nikkei 225 and Hang Seng are all up between 0.5% and 2.5%.
MIDDAY REPORT
(12pm AEST)As expected, the Australian share market is wiping out yesterday's falls with the All Ordinaries index (XAO) up 2.9 pct or 114.9 pts to 4042.5. Keep in mind that despite the improvement, the market locally has still lost ground for five of the past seven sessions.
- The Good Guys are up for sale- A chance for Woolies or Wesfarmers?- The business could bolster either's hardware chainsBy Greg PeelCome in a see the Good, Good, Good Guys / Pay cash and we'll slash low prices.
It's now clear that gold and silver have emerged as the major casualties of the current sell-off, only 10 days after gold dealers and several leading forecasters predicted the price would top $US2,000 an ounce by the end of the year.
Greek lawmakers are expected to make crucial decisions today on the property tax that may serve as the means to convince the International Monetary Fund (IMF) and European Union (EU) to make available an 8 billion euro ($11 billion) loan.
By Jamie SaettelePrepared by Jamie Saettele, CMT"The month + crude rally may be nearing completion. The advance can be counted in a corrective manner (wave c diagonal).
