Australian Stock Market Report – Midday 4/1/14
By Tom Piotrowski, CommSec Market Analyst | April 1, 2014 12:57 PM EST
Solid gains on Wall Street overnight have been ignored by local investors on the first day of a new month and quarter. The gains in the US were driven by dovish comments made by Fed Chair Janet Yellen. Ms Yellen gave a speech on Monday defending the Fed´s policy of low interest rates and bond-buying, saying that the ´´extraordinary´´ commitment to stimulus will be needed for some time in the face of the ´´considerable´´ slack in the economy and labour market. Ms Yellen suggested that this ´´view is widely shared by my fellow policy-makers at the Fed´´. The comments quelled concerns that developed last week around the possibility that the Fed was closer to raising interest rates than the markets had originally anticipated.
Wall Street (Photo: Reuters)
In local trade the ASX 200 started the session with a 1 point gain, at its best levels the index was ahead by 6 points before sellers helped the market retreat to trade at a loss of 38 points at the lows of the morning. Volume has been low with a little more than $1 billion traded at lunchtime on the east coast.
Almost every sector has spent the morning session in the red. As a group miners have been in the red, although of the large bulk miners RIO and FMG have been given something of a fillip after the price of the spot price of Iron ore jumped 4% to $US116.80 per metric tonne. The tentative response to the move in iron ore could be justified in terms of investors waiting for key Chinese manufacturing data due for release in the early afternoon Sydney time.
Elsewhere in the mining sector Lynas Corporation (LYC) rose after releasing an operations update. The group said that commercial production of Rare Earth Oxide (REO) products at the Lynas Advanced Material Plant (LAMP) in Malaysia in the March 2014 quarter was higher than the December 2013 quarter, consistent with guidance provided by Lynas at the end of January 2014. LYC said it had achieved record production of 1089 tonnes of REO for the March 2014 quarter, and that the miner is on track for an 11,000 tonnes p.a run rate during the June 2014 quarter. LYC share were at $0.215 up 2.4 per cent.
The Aussie dollar was firmer ahead of the RBA decision on interest rates due this afternoon at 14:30. The RBA is expected to leave rates on hold although the accompanying statement will be scrutinised closely as always.
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
Most Popular Slideshows
- NFL MNF: Pittsburgh Steelers 30, Houston Texans 23 [PHOTOS]
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- NFL Thursday Recap - Denver Broncos 35, San Diego Chargers 21: Peyton Manning Has 3 TDs In Easy Win [PHOTOS]
Join the Conversation
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- ASUS Releases A Teaser Indicating The Arrival of New Zenfone and ZenWatch On October 28
- Boy Stoned To Death For Alleged Rape, Victim Receives Dowry From Militants
- Verizon Motorola Droid Turbo Leaked Live Images Surfaces, Scheduled To Get Unveiled On Oct 28
- Update HTC One M7 with LG G2 with Android 4.4.2 as Sprint OTA: Fixes and Installation
- Three Dual SIM Samsung Galaxy Note 4 Duos Variants Comes To China
- Russia is Creating Underwater Combat Robots to Protect its Arctic Territories