Market wrap: US stocks finished near flat overnight, held back by weakness in banking stocks as the Obama administration unveiled sweeping new regulatory reforms and the S&P slashed credit ratings on 22 banks.
After trading in a narrow range all night, the Dow closed 0.09% lower, the S&P lost 0.14% and the Nasdaq gained 0.66%. A second night of good news in the housing market helped sentiment, but the big banks remained under pressure as traders questioned whether new financial regulations will crimp profits. The S&P Bank Index fell 4%. Oilers continued to slip, despite a small rally in crude, but there were gains for airlines (2.5%), biotechs (2.37%) and pharmaceuticals (1.92%).
Oil touched $69 in early trade but has since rallied to $70.86, a gain of less than 1% since yesterday. Gold inched higher for a second day as the US dollar fell against the euro after consumer prices data, boosting the precious metal's appeal as an investment alternative. Gold was recently up less than 1% at $938. Base metals made small advances in US trade, copper rising 0.22% and aluminium 1.71%.
Futures traders don't think there are enough positive signs in all this for a positive start to our market. The SPI lost 12 points at 3885. That might be too pessimistic after three days of heavy losses.
There were a host of potential trend reversal candles in our market yesterday. Among the targets I'll be watching today for confirmation of trend change are: ABY, OST, BMN (I hold), ESG, FMG, MRE, GBG, MCC, MAP, MCR and SGX.
Good luck to all today - and many thanks to all those who have "favourited" me. It makes these early starts worthwhile!
