MORNING MARKET REPORT

Source: http://www.raymondteo.com/2008/07/30/morning-market-report-21/
Posted on Wednesday, June 17th, 2009 | In Market Commentary

Contributed by: Raymond Teo (http://www.raymondteo.com) -

NEW YORK – Stocks rebounded a day after their steep tumble, as a drop in oil prices and a rise in consumer confidence gave investors hope for a possible letup in Americans’ financial woes.
The prospect of lower energy costs for US consumers, along with
a modest uptick in the Conference Board’s July index of consumer confidence to 51.9 from 51 in June, came as welcome news.
Merrill Lynch’s move to dumping billions of dollars of mortgage debt at a steep loss and raising $US8.5 billion ($A8.9 billion) in new capital boosted hopes the financial sector was purging itself of the hefty losses from the US housing slump.
The Dow Jones Industrial Average jumped 266.48 points, or 2.39 per cent, to 11,397.56 and the Standard & Poor’s 500 broad-market index added 28.83 points to 1,263.20.
The tech-heavy Nasdaq composite advanced 55.41 points to 2,319.62.
The yield on the 10-year US Treasury bond increased to 4.044 per cent from 4.018 per cent and that on the 30-year bond to 4.622 per cent from 4.614 per cent.

LONDON – European stocks closed generally stronger on the better-than-expected US consumer data, but gains were limited by weakness in the financial sector.
The London FTSE 100 index rose 6.60 points to 5,319.20.

FRANKFURT – The Dax gained 47.65 points to 6,398.80

PARIS – The CAC 40 shed 3.96 points to 4,320.49

TOKYO – Japanese stocks tumbled following heavy losses on Wall Street.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index lost 194.33 points to 13,159.45.

HONG KONG – Stocks followed Wall St lower.
The benchmark Hang Seng Index fell 429.21 points to 22,258.00

WELLINGTON – The benchmark NZSX-50 index lost 21.07 points to 3235.5.

SYDNEY – The Australian stock market is expected to pull back yesterday’s steep losses after Wall St was buoyed by a drop in the oil price and positive consumer confidence data.
On the Sydney Futures exchange, the September share price index futures contract firmed 84 points, or 1.74 per cent, to 4,911.
Today, Australian Bureau of Statistics building approvals data for June is released.
Austar United Communications Ltd releases its interim results, Milton Corp its full year results and Lihir Gold Ltd its second quarter production report.
The Australian share market fell 1.5 per cent yesterday after a disappointing lead from the US reignited jitters over local financial stocks.
The benchmark S&P/ASX200 index dropped 74.7 points, or 1.52 per cent, to 4847.4, while the broader All Ordinaries dipped 66.6 points, to 4923.3.

NYMEX
Oil prices tumbled more than $US2 a barrel Tuesday, finishing at their lowest level in seven weeks as a stronger dollar and beliefs that record prices are eroding the world’s thirst for energy sparked another dramatic sell-off.
The drop – which surpassed $US4 a barrel at one point during the day – was a throwback to oil’s nosedive over the past two weeks and outweighed supply concerns touched off by a militant attack Monday on two Nigerian crude pipelines.
It was oil’s seventh decline in the last 10 sessions.
Light, sweet crude for September delivery fell $US2.54 to settle at $US122.19 on the New York Mercantile Exchange.
It was the lowest settlement price for a front-month contract since June 10.

COMEX
Gold lost ground after a falling oil price lifted Wall St.
Gold for August delivery dropped $US11.20 to settle at $US916.50 an ounce on the New York Mercantile Exchange.
September silver shed nine US cents to settle at $US17.375 an ounce
Copper for September delivery lost $US2.15 cents to $US359.05 a pound on the New York Mercantile Exchange.