Tuesday, January 25, 2011

Australian stock market, Economic Overview January 25, 2011

Australian stock market, Economic Overview January 25, 2011 ; Producer Prices Lower Than Expected : The producer prices index gained less than expected in the fourth quarter, easing concerns about rising inflation. The Australian Bureau of Statistics said that producer prices rose 0.1% in the final quarter, falling short of the 0.7% increase expected. The measure fell from a 2.7% gain in the third quarter.

Reflecting the impact of the high Australian dollar on the economy throughout last year, producer prices for industrial machinery, manufactured goods and electronic equipment were all sharply lower in the fourth quarter. Prices for finished goods imports fell 4.4% over the three months.

Market Overview

- US stocks climbed on Monday, lifting the Dow Jones Industrial Average closer to the 12,000 level than it's been in two and a half years, as investors grew more optimistic for corporate earnings results due this week as well as the president's State of the Union address.

- The Dow Jones Industrial Average rose 0.92%. The measure hit an intraday high at 11,982.94, its highest intraday level since June 20, 2008.

- Leading the Dow, Alcoa jumped 3.4% amid a broader climb among materials companies. Intel was also strong, rising 1.7% after the chip maker's board authorised the company to buy back another $10bn in stock.

- Other gainers included AT&T, up 0.4% ahead of its earnings results due after Monday's close. McDonald's edged up 0.4%, reversing earlier losses as investors digested the fast-food giant's fourth-quarter results. The company's quarterly earnings rose 2.1%, but investors voiced concern over a slowing in the company's same-store sales growth at the end of the year.

- The Nasdaq Composite rose 1.04%. The Standard & Poor's 500 index edged up 0.58%. The technology sector led the climb, boosted by Intel's buyback announcement.

- In Australia, the Australian Bureau of Statistics said that producer prices rose 0.1% in the final quarter, falling short of the 0.7% increase expected. The measure fell from a 2.7% gain in the third quarter.
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