Monday, July 5, 2010

[cpsnewswire] [ASX Morning Update, Monday, July 5, 2010]

(Happy Fourth of July)

Shares poised to open lower

July 5 (AAP) The Australian sharemarket is likely to open lower today after weak jobs growth in the US cast fresh worries about the strength of the world's largest economy.

On the Sydney Futures Exchange, the September share price index contract ended trading on Saturday 30 points lower at 4,213. In trading on Friday, the benchmark S&P/ASX200 index eked out a modest gain - its first in nine days - to close up 1.2 points, or 0.03 per cent, to 4,238.7 points, while the broader All Ordinaries index added 2.2 points, or 0.05 per cent, to 4,264.9.


Australian dollar hovers at 84.2 US cents
Wall Street drops on US jobs data
Oil futures eased to $US72 a barrel
Gold futures steady at $US1208 an ounce

In economic news scheduled for today, the Australian Industry Group and the Commonwealth Bank release their Australian Performance of Services Index, and TD Securities and the Melbourne Institute release their inflation gauge for June.

Junior mining companies, meanwhile, are set to meet Resources Minister Martin Ferguson when he holds talks today in Perth after last week's deal with major firms on the new resources tax.

Overseas equities

US stocks closed lower on Friday after a mixed June employment report showed the economy shed more jobs than expected but the unemployment rate dipped.

The Dow Jones Industrial Average dropped 46.05 points, or 0.47 per cent, to 9,686.48, a nine-month low.

It was the seventh consecutive losing session for the blue-chip index.

The tech-rich Nasdaq composite index slid 9.57 points, or 0.46 per cent, to 2,091.79 and the S&P 500 index, a broader measure of the markets, shed 4.79 points, 0.47 per cent, at 1,022.58.

Volume was thin ahead of the long holiday weekend. The US markets will be closed on Monday for the Independence Day holiday.

In Europe, stock markets closed broadly higher on Friday after mixed US employment figures that analysts there said pointed to modest economic growth ahead.

The FTSE 100 index gained 32.34 points, or 0.67 per cent, to finish at 4,838.09. In Germany, the DAX fell 23.28 points, or 0.4 per cent to finish at 5,834.15 while in Paris, the CAC 40 added 8.47 points, or 0.25 per cent, to 3,448.37.

Oil, gold

World oil prices fell on Friday after poor jobs data from the United States, the world's biggest energy-consuming nation.

New York's main contract, light sweet crude for August delivery, fell 81 US cents to $US72.14.

In London, Brent North Sea crude, also for August delivery, lost 69 US cents to settle at $US72.38.

Ahead of a US public holiday on Monday, oil prices fell as traders digested a mixed June employment report showing the economy shed more jobs than expected and a surprise dip in the unemployment rate.

In Comex trading, gold for August delivery added $US1.00 to settle at $US1,207.70 an ounce.

Copper for September delivery rose 3.9 cents to settle at $US2.916 a pound.

In other September contracts, silver, which trades as both an industrial and precious metal, lost 7.1 cents to settle at $US17.719 an ounce.

AAP with BusinessDay


"Mogi" Munkhdul Badral

CPS International


Mobile: +976-99996779

CPS International 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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