Australian Stock Market Report – Morning 1/24/14
By Savanth Sebastian, CommSec Economist | January 24, 2014 9:40 AM EST
US MID SESSION MORNING REPORT
In US economic news the flash Markit PMI eased from 55 to 53.7 in January. Slower rates of output and new order growth were behind the modest fall. The leading economic indicators index rose by 0.1% in December. US existing home sales rose by 1% in December. Existing home sales totalled 5.09 million units over 2013 - a seven year high. The national median price for existing homes was up 9.9% on a year ago. US jobless claims rose by 1,000 to 326,000 last week.
Traders work on the floor of the New York Stock Exchange (Reuters)
European shares fell on Thursday, pulled down by a double-digit fall in Nokia and weak US and Chinese economic data. Nokia dropped by 10.7% after it reported a steep fall in sales at its network equipment division - which is expected to become its core business. Chinese manufacturing data depressed the mining sector, which ended down by 0.8%. On a positive note, Germany´s flash PMI rose from 55 to 55.9 in January - its fastest pace in over two year. The FTSEurofirst 300 index fell by 1% with the UK FTSE down by 0.8% and the German Dax down 0.9%. Mining shares were weaker in London trade with BHP Billiton shares down 0.5% while Rio Tinto fell by 0.9%.
US share markets fell on Thursday with the selloff accelerating in afternoon trade. Disappointing Chinese manufacturing data, mixed US earnings and the next week´s FOMC meeting all weighed on investor sentiment. McDonald´s reported weaker-than-expected revenue as fewer customers ate at its restaurants. Netflix surged by 16% after reporting it had added more than 2.3 million customers in the fourth quarter. With an hour of trade left , the Dow Jones was down by 189 points or 1.2%, while the S&P 500 lost 1.1% and the Nasdaq fell 0.8%.
US treasury prices climbed on Thursday, (yields lower), as investors revived safe haven bids following weaker-than-expected Chinese data. US 2 year yields fell by 6 points to 0.36% while US 10 year yields fell by 10 points to 2.77%.
The US dollar fell against the Euro on Thursday, pressured by strong euro zone manufacturing data. The Euro rose from early lows near US$1.3540 to highs around US$1.3695 and was trading near its highs in late US trade. The Aussie dollar fell from highs near US88.15c to lows near US87.35c, and held near US87.55c in late US trade. And the Japanese yen traded between 104.45 yen per US dollar and JPY103.05 and was trading near 103.20 in late trade.
World oil prices were mixed on Thursday following a sizeable drawdown in US oil inventories. US distillates stockpiles fell by 3.21 million barrels. Brent crude fell by US70c or 0.6% to US$107.57 a barrel while US Nymex crude rose by US59c or 0.6% to US$97.32 a barrel.
Base metal prices were weaker on the London Metal exchange on Thursday, with zinc down 2.2% and lead down 1.9%. Copper also lost 1.3% pressured by the weaker Chinese manufacturing data. And the gold price rose in response to a weaker US dollar. Comex gold futures rose by US$23.70 or 1.9% to US$1,262.30 per ounce. The iron ore price rose by US40c to US$123.90 a tonne.
Ahead: In Australia and the US, no economic data is released.
[Kick off your trading day with our newsletter]
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
Most Popular Slideshows
- Still The World Champions: Team USA Overpowers Serbia, 129-92 To Win 2014 FIBA World Cup [PHOTOS]
- Pope Francis: World War III Has Started On Piecemeal
- After Win Over Maidana, Mayweather Says He Is Prepared To Negotiate A Fight With Pacquiao
- From Fat To Fit: Celebrities Who Were Overweight Before They Became The Beauties That They Are
Join the Conversation
- Another Close Call For Malaysian Airlines As Auto Pilot Defect Hits MH198 From Hyderabad
- Australian Stock Market Report – Afternoon September 15, 2014
- Iron Age For Australia Ends As Price Of Key Steelmaking Ingredient Dips Below $83/Tonne
- Australian Stock Market Report – Morning September 15, 2014
- Australian Stock Market Report – Midday September 15, 2014
- iPhone 6 vs iPhone 6 Plus vs Galaxy S5 and HTC One M8: Performance, CPU and Health
- Google Release Roundup: Nexus 5 2014, Nexus 6, Nexus 8 and Android L Killer Features
- Samsung Attacks iPhone 6 Plus Through New Galaxy Note 4 Commercial: Apple Claims Imitating Galaxy Note Phablets
- iPhone 6 And IPhone 6 Plus Sold Out, New Stocks To Arrive In October
- Moto G (Gen 2) vs. Xiaomi Redmi 1S—Specifications, Features And Price Showdown
- Nexus 6, 8 Release Dates Imminent as Moto X Pre-Order Begins & Nexus 7 Deals Ramp Up
- iPhone 6 And iPhone 6 Plus Shipping Has Begun, Expected To Reach Customers’ Doorstep On Sept 19 Launch Date