Thursday, July 22, 2010

[cpsnewswire] [ASX Morning Update & Overnight News, Thursday, July 22, 2010]

Stocks set to fall on US jitters


July 22 (AAP) The Australian sharemarket is expected to open weaker, after major indices on Wall Street backpedalled more than 1 per cent and the benchmark crude oil contract dipped below $US77 a barrel and the US central bank chief signalled more economic uncertainty.


This morning on the Sydney Futures Exchange, the September share price index contract was down 49 points at 4349 points, with 3708 contracts traded. Yesterday, the major indices each finished about a quarter of a per cent higher.


What you need to know:


·         The SPI was down 49 points at 4349

·         The Australian dollar was buying 87.83 US cents

·         In the US, the S&P500 fell 13.89 points to 1069.59

·         In Europe, the FTSE 100 rose 75.18 points to 5214.64

·         Gold rose 10 US cents an ounce to $US1191.80

·         Oil fell $US1.02 to $US76.56

·         The Reuters Jefferies CRB index was flat

·         Stocks to watch: possible market movers


What's out today


In economics news, National Australia Bank is to release its business survey for the June quarter.

In the news this morning

Overseas, US Federal Reserve chief has spoken of the "unusually uncertain" economic conditions facing the world's largest economy in senate testimony that was delayed because of the final signing-off of financial reforms that mark the biggest changes to Wall Street regulations since the 1930s.

How we fared yesterday


In Australia, the stock market closed higher, led by gains in the mining sector, following strong production figures from BHP Billiton.


The benchmark S&P/ASX200 index ended up 9.1 points, or 0.21 per cent, at 4412.7 points, while the broader All Ordinaries index rose 10 points, or 0.23 per cent, to 4428.7 points.


Offshore overnight


US stocks closed sharply lower after Federal Reserve chairman Ben Bernanke confirmed investor fears that the economy has weakened.

The Dow Jones industrial average closed down 109.43 points, or 1.07 per cent, at 10,120.53 points. The Standard & Poor's 500 index closed down 13.89 points, or 1.28 per cent, at 1069.59 points.


The Nasdaq composite index closed down 35.16 points, or 1.58 per cent, at 2187.33 points.

European stocks outperformed their US counterparts because they had ended down on Tuesday before Wall Street rallied.

The FTSE 100 index closed up 75.18 points, or 1.46 per cent, at 5214.64 points.


The German DAX 30 closed up 22.89 points, or 0.38 per cent, at 5990.38 points.


The French CAC 40 closed up 25.90 points, or 0.75 per cent, at 3,493.92 points.




Oil prices slipped amid an unexpected surge in crude reserves in the US, indicating weaker demand in the key energy-consuming nation.

The market was shocked by the latest data from the US Department of Energy that showed US crude oil reserves rose 400,000 barrels in the week ending July 16.

September gold rose 10 US cents to settle at $US1191.80 a fine ounce on the Comex division of the New York Mercantile Exchange.


September silver rose 11 US cents to settle at $US17.803 per ounce.


Copper for September delivery settled 9.15 US cents higher at $US3.0930 per pound.


AAP, with BusinessDay


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