[cpsnewswire] [ASX Morning Update, Monday, July 19, 2010]

Stocks set to skid

 

Australian markets have received strongly negative leads from offshore trading on Friday, with key indices substantially lower and key commodities also down heavily.

 

When the Sydney Futures Exchange last traded on Saturday morning, the September share price index contract was 79 points lower at 4327. On Friday, the local indices finished slightly lower.

 

What you need to know:

 

·         The SPI was down 79 points at 4327

·         The Australian dollar was buying 86.63 US cents

·         In the US, the S&P500 fell 31.6 points to 1064.88

·         In Europe, the FTSE 100 fell 52.44 points to 5158.85

·         Gold fell $US20.10 an ounce to $US1188.20

·         Oil fell 61 US cents a barrel to $US76.01

·         Wall Street week ahead: what's in store

·         Australian diary: calendar of the week's events

·         Stocks to watch: possible market movers

…

"From a fundamental perspective, it is clear that the stimulus-driven recovery is faltering with key housing, labour and credit numbers continuing to present a worrying outlook for economic activity in the second half of the year."

…

In the news this morning

…

Junior miners will decide at a meeting this week whether to restart their advertising campaign against the government's proposed mining tax.

…

Offshore

 

US stocks plunged on Friday after sagging consumer confidence and a mixed batch of second-quarter earnings revived fears about the health of the economic recovery.

 

The Dow Jones Industrial Average tumbled 261.41 points (2.52 per cent) to finish at 10,097.90.

 

All 30 of the Dow's blue-chip stocks closed in the red.

 

The tech-heavy Nasdaq composite index dropped 70.03 points (3.11 per cent) to 2179.05 while the broad-market S&P 500 index shed 31.60 points (2.88 per cent) at 1064.88.

…

European stock markets closed sharply lower on Friday after investors found unwelcome holes in otherwise strong US corporate results, adding to fears the recovery from recession is stalling.

…

In London, the FTSE 100 index of leading shares closed down 1.01 per cent, by 52.44 points, at 5158.85.

 

Germany's DAX lost 109.09 points, by 1.77 per cent, to 6040.27 and in France, the CAC 40 tumbled 81.66 points, by 2.28 per cent, to 3500.16.

 

How we fared Friday

 

The Australian share market closed lower on Friday, led by losses in the materials and financial sectors and as the market anticipated the announcement of the date of the federal election, announced on Saturday as August 21.

 

The benchmark S&P/ASX200 index was down 19.9 points, or 0.45 per cent, at 4422.7 points, while the broader All Ordinaries index was down 19.7 points, or 0.44 per cent, to 4437 points.

 

Commodities

 

Oil prices fell Friday after earnings reports from banks disappointed investors and a new survey showed that consumers are becoming more pessimistic.

 

Benchmark crude for August delivery slid 61 US cents to settle at $US76.01 a barrel on the New York Mercantile Exchange.

…

August gold slid $US20.10 to settle at $US1188.20 a fine ounce on the Comex division of the New York Mercantile Exchange. September silver fell 57.4 US cents to $US17.788 per ounce, and copper, also for September, fell 8.25 US cents to $US2.9295 per pound.

 

Link to article