Australian Stock Market Report – Morning July 8, 2014
By Craig James, CommSec Chief Economist | July 8, 2014 9:08 AM EST
In US economic data, the Employment Trends index rose from 119.03 to 119.62 in June. In European economic data, German production fell by 1.8% in May, the biggest reduction in two years and well below market expectations.
European shares fell on Monday in response to the weak German economic data. The FTSEurofirst 300 index fell by 0.9%, the German Dax lost 1.0% while the UK FTSE fell by 0.6%. Australia´s major miners finished lower in London trade with shares in BHP Billiton down by 0.8% while Rio Tinto lost 0.7%.
US sharemarkets eased on Monday with some investors choosing to book profits ahead of the start of earnings season. There was little in the way or corporate or economic news to cause traders or investors to adopt new positions. The Dow Jones fell by 44 points or 0.3% with the S&P 500 index down by 0.4% and the Nasdaq lost 34 points or 0.8%.
US treasury prices rose on Monday (yields lower) with traders and investors taking profits in the sharemarket and putting money to work in government bonds. US 2 year yields were flat at 0.516% while US 10 year yields fell by 3 points to 2.617%.
Major currencies rose against the US dollar on Monday. The Euro rose from lows near U$1.3575 to highs near US$1.3610, closing US trade near US$1.3605. The Aussie dollar rose from lows near US93.50c to highs near US93.75c and ended US trade near US93.70c. And the Japanese yen lifted from 102.13 yen per US dollar to JPY101.78, ending US trade near JPY101.83.
World oil prices eased on Monday with all manner of fears about supply disruptions failing to be realised into actual reductions in production or exports from key producers. Also lower German production data suggested weaker oil demand lay ahead. Brent crude fell by US40c or 0.4% to US$110.24 a barrel and the US Nymex price closed lower by US43c or 0.4% to US$103.63 a barrel.
Base metal prices were mixed on the London Metal Exchange on Monday. Zinc lifted most, up 1.1%, and lead rose 0.5%. But other metals fell up to 0.5%. The Comex gold futures quote fell by US$3.60 or 0.3% to US$1,317.00 per ounce. Iron ore fell by US60c a tonne or 0.6% to US$95.90 a tonne.
Ahead: In Australia, the NAB business survey is released. In the US, data on weekly chain store sales is released together with consumer credit figures. Alcoa releases earnings results after the bell on Tuesday.
[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
- 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]
- 2014 MLB World Series Game 3: Kansas City Royals 3, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Australia's Low Birth Rate May Be Due to Low Confidence in Economy
- Fears Of Infection Spread Prompt Some US Hospitals To Refuse Ebola Patients
- Readers Slam a Book Showing That US Wealth And Power Rests on Slave Labour
- LG G Watch R To Be Available Globally Starting With Europe, North America And Asia Through Retail Sites And Play Store
- Young Teen Fighter Says ISIS Uses Drugs On Suicide Bombers To Get Them Perform The Act
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- 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
- U.S. Targets Buyers of ISIS Oil, Threatens Sanctions
- ISIS Syria Airstrike Bombing Has Killed 550 People, Civilians Included
- Russia Blocking OSCE Monitoring Of Its Border With Ukraine
- Russia Slams US 'Double Standards' In The Fight Against ISIS