Monday, May 16, 2011

Australian Stock Market Today Morning Report 17 May 2011

Australian Stock Market Today Morning Report 17 May 2011 : Net capital inflow to the US was US$116 billion in March, up from US$95.6 billion in February and US$38.7 billion in January. Chinese holdings of treasuries eased from $1.1541 trillion to US$1.1449 trillion. The National Association of Home Builders index was unchanged at +16 in May. And the Empire State manufacturing index hit a 5-month low of 11.88 in May, down from 21.88 in April.

Eurozone finance ministers have approved a 78 billion euro bailout for Portugal. Two-thirds of the funds will come from EU facilities and the remainder from the IMF.

European shares fell again on Monday with banks leading the declines on concern about the region´s debt crisis. The FTSEurofirst index fell by 0.2pct with the German Dax lower by 0.2pct and the US FTSE was down by 2.2pts or less than 0.1pct.

US share markets fell again on Monday as more signs of a faltering economy caused investors to book profits on recent gains. Technology stocks - the best performers over 2011 - were hardest hit by profit-taking. And shares in Lowe´s - the second largest home improvement chain - lost 3.6pct after reporting weaker-than-expected earnings. The Dow Jones lost 47pts or 0.4pct with the S&P 500 lower by 0.6pct and the Nasdaq lost 46pts or 1.6pct.

US treasuries rose again on Monday (yields lower) as investors shrugged off news that the US Government had hit its debt limit of US$1.294 trillion. Investors believe that lawmakers will agree to lift the debt limit before a default is triggered in August. A weaker sharemarket also buoyed demand for treasuries on Monday. US 2yr yields fell by 2pts to 0.53pct and US 10yr yields fell by 4pts to 3.15pct.

The US dollar gave back some of its recent gains against major currencies in European and US trade on Monday. The Euro rose from lows near US$1.4090 to US$1.4240, before ending US trade near US$1.4170. The Aussie dollar rose from lows near US105.15c to US106.40c before ending US trade near US105.75c. And the Japanese yen lifted from 81.00 yen per US dollar to JPY80.75, ending US trade near its strongest levels.

US and European crude oil prices fell on Friday as investors fretted about a slowdown in the US economy. The Nymex crude oil contract fell by US$2.28 or 2.3pct to US$97.37 a barrel and London Brent crude fell by US$1.10 to US$112.73 a barrel. US gasoline futures also fell by 4.7pct.

Base metal prices were again mixed on the London Metal Exchange on Monday. Copper rose 0.5pct and zinc was largely unchanged but other metals fell 0.2-2.1pct with tin faring worst. And the gold price fell again on Monday, with Comex gold futures down by US$3.00 an ounce to US$1,490.60.

Ahead: In Australia, minutes of the last Reserve Bank Board meeting are released. Lending finance data is released. In the US, data on housing starts and industrial production are released. source : http://hken.ibtimes.com/articles/146607/20110517/australian-stock-market-report-morning-17-may-2011.htm
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