THE PENSKE FILE 5 AUGUST
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Morning all
SPI futures down 17pts at 5622
AUD at 73.82 US cents, 91.73 Japanese yen, 67.80 Euro cents and 47.40 British pence
On Wall St, S&P 500 -0.2%, Dow -0.3%, Nasdaq -0.2%
In Europe, Stoxx 50 -0.4%, FTSE flat, CAC -0.2%, DAX +0.1%
Spot gold rose $US2.26 or 0.2% to $US1089.05 an ounce
Iron ore slips 0.6% to $US55.29 per tonne
Brent crude rose 60 US cents or 1.2% to $US50.12 a barrel
Europe
European stocks snapped a five-day winning streak as declines in banks outweighed a surge in miners. Greek shares slid for a second day.
Credit Agricole dragged lenders to the worst performance on the Stoxx Europe 600 Index, tumbling 10 per cent after signalling it failed to win backing from regulators for a reorganiation that may free up capital to repay investors. Total and Eni pulled oil-and-gas companies down, as crude traded in a bear market. BHP Billiton and Rio Tinto Group rose at least 1.6 per cent, pushing commodity producers to the biggest gain on the equity gauge as some metal prices rebounded.
Greece's ASE Index, which plummeted 16 per cent on reopening Monday after a five-week suspension, lost 1.2 per cent, for the biggest drop among western-European markets. The emergency curbs placed on trading before the resumption of activity are making routine tasks like buying and selling often impossible, according to local brokers.
United States
Wall Street ended lower on Tuesday for a third straight session as investors worried about a rise in interest rates while Apple's shares hit their lowest in over six months.
The iPhone maker's shares fell 3.21 per cent to $US114.64, firmly below their 200-day daily moving average, a key technical level closely watched by traders. The stock was the biggest drag on the three major US indexes.
Eight of the 10 major S&P sectors fell, with the utilities index's 1.64 per cent decline leading the losers.
After the bell, shares of crafts website Etsy fell 9 per cent and Walt Disney lost 1.4 per cent after the companies posted quarterly results that disappointed Wall Street.
Currencies
Alessio de Longis, a money manager in the Global Multi-Asset Group at OppenheimerFunds in New York, sees more losses for commodity currencies. He estimated the Aussie will fall to 60 cents per US dollar in the next one to three years, and the kiwi to drop to 50 cents in the same time.
The US dollar rose a four-month high before the August 7 employment report that may provide the Federal Reserve with enough evidence to raise interest rates for the first time in almost a decade. The greenback rallied versus most major peers.
Fed Bank of Atlanta president Dennis Lockhart said in an interview with the
Wall Street Journal that the central bank is close to a September rate increase. Futures prices showed traders were raising the likelihood of an increase next month.
Commodities
Oil edged higher amid speculation that its drop below $US50 a barrel was excessive given projections that US supply will decline. Oil is trading in a bear market both in London and New York as growing supplies and signs of slower economic growth in China fuel a rout in commodities. Brent's 14-day relative strength index was at about 23 today, data compiled by Bloomberg show. That's a seventh day below 30, signalling that the market is oversold and further losses probably can't be sustained. The 14-day RSI for WTI was about 27.
Rubber in Tokyo entered a bear market as the slowdown in China, the world's largest consumer, worsened a global glut. Benchmark futures fell 1.5 per cent to settle at 194.5 yen a kilogram on the Tokyo Commodity Exchange, 20 per cent below a 16- month high reached June 1.
Platinum dropped to the lowest in 6-1/2 years and palladium to the lowest since late-2012 on oversupply and sluggish auto catalyst demand. "What has hit palladium is that projections of car sales into the future were (relying) on strong growth in China and emerging markets," said Macquarie analyst Matthew Turner. "But China is flatlining and many emerging markets are down double-digit percentages. The outlook now looks a lot worse than a year or so ago."
What's on today
Euro-area services/composite PMI (July final)
UK services PMI (July)
US ADP employment, trade balance, Markit US composite PMI (July final)
Good luck today
HLL come back the posts when you are away are substandard
