Wednesday, June 23, 2010

[cpsnewswire] [ASX Morning Update, Wednesday, June 23, 2010]

Shares extend slide after Wall St slump


June 23 (AAP) The Australian sharemarket is has opened lower after Wall Street slumped in late trade as poor housing data hit investor confidence.


In early trade, the benchmark S&P/ASX200 index fell 29.2 points, or 0.6 per cent, to 4529.1 and the All Ordinaries dropped 30.3 points, or 0.7 per cent, to 4551.


“There’s no feeling of certainty out there hence we’ll continue to see volatility in stocks,” said Wilson HTM investment manager Henry Edgar said.


Overnight the legal wrangling between the White House and BP amid the ongoing Gulf of Mexico oil spill had sent jitters through the energy sector, which should weigh on local oil and resources stocks, Mr Edgar said.


Also, US existing home sales in May dropped to 5.7 million, much lower than the 6.1 million expected for the month, exposing another element of weakness in the American economy.


Overseas sharemarkets


US stocks fell more than 1 per cent in yet another late-day selloff on Tuesday as unexpectedly poor housing figures and the puncture of a key technical level sapped buying interest.

The Dow Jones Industrial Average dropped 148.96 points, or 1.4 per cent, to 10,293.45. The Standard & Poor's 500 Index fell 17.86 points, or 1.6 per cent, to 1095.34. The Nasdaq Composite Index lost 27.29 points, or 1.2 per cent, to 2261.80.

European stock exchanges wilted in the face of profit-taking, with the London FTSE 100 index shedding 1 per cent to close at 5246.98 points.


In Paris the CAC 40 fell 0.8 per cent to finish at 3705.32 while in Frankfurt the DAX gave up 0.4 per cent and closed at 6269.04.

International news

BP shares fell to their lowest point in 13 years, as CEO Tony Hayward handed over control of the Gulf of Mexico oil spill response to managing director Bob Dudley.

US Treasury Secretary Timothy Geithner said the US economy was ‘‘still going through an incredibly difficult period’’, as he warned the impact of the crisis would be ‘‘lasting’’.



Oil prices fell overnight as the euphoria over China’s decision to let its currency appreciate waned. Benchmark crude for July delivery lost 61 cents to settle at $US77.21 on the New York Mercantile Exchange.


Oil has jumped from $US64 a barrel on May 25 on optimism Europe’s debt crisis won’t stymie the global economic recovery.


Goldman Sachs cut its crude forecasts, but still expects prices to rise this year as the global economy grows an estimated 4.9 per cent in 2010. Goldman now expects prices to rise to $USUS87 a barrel in three months, down from last month’s forecast of $US96.


August gold rose by 10 cents to settle at $US1240.80 per fine ounce on the Comex division of the NY Mercantile Exchange.


July silver rose 9.4 cents to $US18.902 per fine ounce, while July copper rose 5 cents to $US2.992 per pound.


Yesterday's sharemarket


Yesterday, the sharemarket closed firmly in the red, with the big miners and banks losing ground after some of the enthusiasm waned for China letting its currency appreciate.


The benchmark S&P/ASX200 index fell 54.3 points, or 1.2 per cent, to 4558.3 points, while the broader All Ordinaries index was down 51.4 points, or 1.11 per cent, at 4581.3.



- SPI futures are 45 points lower at 4506
- US stocks fall over 1% in late sell-off
- The dollar opens lower, at 87.2 US cents
- Oil falls to $US77 as yuan optimism wanes
- Gold rises to $US1240 on investor unease
- Stocks to watch on the ASX today


Link to Article



"Mogi" Munkhdul Badral

CPS Mongolia


Mobile: +976-99996779


CPS Mongolia is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based ASX Licensed Financial Services Company. To trade ASX stocks, feel free to contact me at or +976-9999-6779.


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