Australian Stock Market Report – Morning June 2, 2014
By Craig James, CommSec Chief Economist | June 2, 2014 9:14 AM EST
In US economic data, personal income rose by 0.3% in April, in line with forecasts. But consumption fell by 0.1%, short of forecasts tipping a 0.2% increase. The Chicago purchasing managers index rose from 63.0 to 65.5 in May, above the median forecast of 61.0. Consumer sentiment rose from 81.8 to 81.9 in May, short of the 82.5 median forecast.
Traders work on the floor of the New York Stock Exchange (NYSE) just after the opening bell, October 10, 2013.
The Chinese purchasing managers' index rose from 50.4 to 50.8 in May, above forecasts centred on a result near 50.6. Meanwhile the State Council said policymakers would ´´properly´´ cut the reserve requirement for banks that had extended a certain amount of loans to rural borrowers and smaller companies.
European shares were generally lower on Friday. The FTSEurofirst 300 index eased by 0.1%, and the UK FTSE lost 0.4% but the German Dax was up by less than 0.1%. Data showed German retail sales growing at the fastest annual rate in two years. Mining shares slumped in London trade in response to lower base metal and iron ore prices with shares in BHP Billiton down by 3.7% while Rio Tinto lost 4.1%.
US blue-chip shares ended slightly higher on Friday. The Dow Jones index rose by 18 points or 0.1% to record highs. The S&P 500 rose by 0.2% to fresh record highs but the Nasdaq lost 5 points or 0.1%. Over the month the Dow Jones rose by 0.8%, the S&P 500 lifted 2.1% and the Nasdaq rose by 3.1%.
US long-term treasury prices eased on Friday (yields higher). US 2 year yields were flat near 0.375% while US 10 year yields were up by 1 point to 2.475%. Over the week US 2 year yields rose by 2.5 points while US 10 year yields fell by almost 4 points.
Major currencies were mixed against the US dollar over European and US sessions. The Euro rose from lows near US$1.3600 to highs near US$1.3645, before ending US trade around US$1.3630. The Aussie dollar fell from highs near US93.25c to lows near US92.90c before finishing US trade around US93.10c. And the Japanese yen eased from 101.55 yen per US dollar to JPY101.83, before ending US trade near JPY101.78.
World oil prices fell in line with other commodities on Friday with traders attributing the falls to end-month profit-taking. Brent crude fell by US87c or 0.8% to US$109.41 a barrel while US Nymex fell by US87c or 0.8% to US$102.71 a barrel. Over the week Brent fell by 1.0% with Nymex down by 1.6%.
Base metal prices were lower by up to 1.2% on the London Metal Exchange on Friday, the exception being nickel, up 1.8%. Over the week metal prices fell by up to 2.6% although aluminium bucked the trend, up 1.7%. The Comex gold futures quote fell on Friday in response to end-month book squaring, hitting near 4-month lows, down by US$11.00 an ounce or 0.9% to US$1,246.00 per ounce. Gold fell 3.5% over the week. Iron ore fell by US$3.90 a tonne or 4.2% on Friday to US$91.80 a tonne. On the week iron ore fell 6.2%.
Ahead: In Australia, the RP Data-Rismark home price index is released with TD Securities inflation gauge, Business Indicators, and the Performance of Manufacturing index. In the US, the ISM manufacturing index is released with construction spending.
[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
- Pope Francis Meets Sudanese Woman Who Was Spared Death for Apostasy (PHOTOS)
- Malaysia Airlines Flight MH17: King Williem-Alexander, Queen Maxima Hold Solemn Reception Ceremony for Victims
- Jennifer Lawrence & Nicholas Hoult Allegedly Split: Mad Max Actor Cheats with Kristen Stewart & Riley Keough - Reports
- Transfer News: FC Barcelona Shockingly Sign Valencia Defender [PHOTOS]
Join the Conversation
- Ebola Virus on the Loose: World Cautioned as Infection Moves; Global Airports on High Alert; Kills Liberian Doctor, Infects American Worker
- Advisory: Britons Told to Leave Libya ASAP, UK Issues Travel Ban
- Malaysia Airlines MH17: Multi-Million Pound Law Suit Looms Over Putin’s Head, Assets At Risk
- Magaluf 2014 Update: Spanish Bar Where Teen Performed Sex Acts Closed, to Pay $78K Fine Along with Carnage Event Planner (VIDEOS)
- Malaysia Airlines MH17: Russian International Condemnation Extends to 2018 World Cup
- Apple iPhone 6 on Two Confirmed Release Dates, New Parts Leaked Suggesting Bigger iPhone to Come
- Xiaomi Mi4 vs OnePlusOne vs Nexus 5: Mi4 is the ‘Perfect’ Phone
- Google Nexus 6, 8 with Android L on Release Date Promises Killer Mobile Device Experience
- Israeli Women Stripping Naked for IDF Soldiers
- HTC One M8 Android 4.4.3 KitKat Update Roll Out, Introducing the HTC One Remix
- Shocking Video of Pedigree Dog Culling in Bali Emerges [Video]
- Sony Xperia Z3 Specs Leaked with More Killer Features Ahead of Samsung Galaxy Note 4, iPhone 6