Morning all
Thanks Trees Shants and Rav
World markets continued to auger on in overnight as financial shares led another selloff, however markets have finished well off their lows.
March SPI Futures are off 36 at 4731
European banks continued to spook investors, the sector down over 6%, with French bank Societe Generale down 12.6 percent after it posted a lower than expected rise in fourth-quarter net income.
There is once again rising concern about European countries’ sovereign debt, as bond yields in several EU countries have risen sharply in recent weeks. The outlier is Germany, whose bonds are considered to be high quality and safe-haven. German bond yields are presently at record lows and in negative territory. 1
Commodity-related stocks also fell, with the oil and gas sector down 4 percent as the price of oil slid, and the basic resources sector down 4.3 percent.
Rio Tinto dropped 3.4 percent after the miner posted an annual loss and scrapped its promise to maintain or lift its dividend annually from this year onwards due to a tough outlook.2
STOXX 50 -4%
DAX -3%
FTSE -2.5%
Bank shares dragged Wall Street lower on Thursday on concerns the slowing global economy will continue to pressure down interest rates, although energy shares helped pare losses on a report that OPEC may move to cut oil production.
The S&P 500 touched its lowest in two years before bouncing back after the Wall Street Journal reported OPEC was ready to cooperate on production cuts, citing the UAE energy minister.
Financial shares, however, remained near their session lows and were on track to post their largest daily loss in five months.
"There's great fear coming out of the banks," said Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis.
He said the run into safety assets like Treasuries and gold indicated a capitulation among stock investors and "the downside risk from here is less than the upside potential."
Federal Reserve Chair Janet Yellen said on Capitol Hill that a weakened global economy and steep slide in US equity markets is tightening financial conditions faster than the Fed wants. 3
S&P -1.2%
Nasdaq -2.6%
Steeper losses in US markets were offset after The Wall Street Journal reported that OPEC members may be ready to cooperate on reducing crude output.Crude climbed above $US27 in New York after touching $US26.13. The UAE energy minister was quoted as saying that OPEC may cooperate to curb future output. 4
Oil $27.27 -.18c
Copper, aluminium and zinc were mildly firmer however nickel took another hit tanking 3.3%
Strong safe-haven demand for gold sent the precious metal soaring to a 12-month high above $1,260.00 Thursday. Another big sell off in world stock markets sent investors and traders scrambling into the gold market. There are growing concerns about the collective health of the major world economies. Gold prices have risen around 15% the past six weeks. April Comex gold was last up 4.1% at $1,246 an ounce. March Comex silver was last up $0.523 at $15.81 an ounce.Technically, April gold futures prices closed nearer the session high and scored a fresh 12-month high today. Prices are in an accelerating seven-week-old uptrend on the daily bar chart. Bulls have the solid near-term technical advantage.
Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,200. First resistance is seen at today’s high of $1,263.90 and then at $1,275.. First support is seen at $1,240. and then at $1,225. 1
On Today
Further pain
Have a good day
1 **promotion blocked**
2 Reuters
3 SMH
4 Wall Street Journal
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