Australian Stock Market Report – Morning July 10, 2014
By Craig James, CommSec Chief Economist | July 10, 2014 9:02 AM EST
The US Federal Reserve FOMC minutes from its June 17-18 meeting were released. The Fed began detailing how it plans to ease the US economy out of an era of loose monetary policy. The minutes showed that Fed participants ´´generally agreed´´ that its monthly bond purchases would end in October. There was also discussion about the central banks current policy of reinvesting its $4.2 trillion in asset holdings as the securities mature. Policymakers debated how to reduce those holdings without disrupting financial markets. Rates hikes are still unlikely till the second half of 2015.
Specialist trader Geoffrey Friedman monitors his screen as a television displays the Federal Reserve decision, on the floor of the New York Stock Exchange June 18, 2014. The U.S. Federal Reserve on Wednesday hinted at a slightly faster pace of interest rate increases starting next year, but suggested benchmark borrowing costs in the long-run would be lower than it had indicated previously. REUTERS/Brendan McDermid (UNITED STATES - Tags: BUSINESS)
European shares were mostly weaker on Wednesday. Portuguese shares were the key underperformer after being by hit by concerns about the health of one of the largest financial groups. Portuguese largest Bank Banco Espirito Santo fell by 4.7% after financial trouble at its largest at its largest shareholder. Lisbon´s PSI 20 fell 2.1%. The FTSEurofirst 300 index closed flat, the German Dax rose 0.4% while the UK FTSE fell by 0.3%. Australia´s major miners finished higher in London trade with shares in BHP Billiton up by 0.2% while Rio Tinto rose 0.1%.
US sharemarkets rose on Wednesday, rebounding from a sharp two-day decline. Alcoa was one of the best advancers up 5.9% a day after its results topped expectations. The Dow Jones rose by 79 points or 0.5% with the S&P 500 index up by 0.5% and the Nasdaq rose 26 points or 0.6%.
US treasury prices rose on Wednesday (yields lower) as the Federal Reserve acknowledged the recent strengthening in the US economy but suggested it was unlikely to raise rates till the second half of 2015. US 2 year yields fell by 4 points to 0.48% while US 10 year yields fell by 1 point to 2.55%.
Major currencies rose against the US dollar on Wednesday. The Euro rose from lows near U$1.3605 to highs near US$1.3645, closing US trade near US$1.3640. The Aussie dollar rose from lows near US93.85c to highs near US94.25c and ended US trade near US94.10c. And the Japanese yen lifted from 101.85 yen per US dollar to JPY101.50, ending US trade near JPY101.60.
World oil prices fell on Wednesday on improved supply expectations from key Middle East producers. Brent crude fell for the eighth straight session, down by U62c or 0.6% to US$108.32 a barrel and the US Nymex price closed lower by US$1.34 or 1.3% to US$102.29 a barrel.
Base metal prices were mixed on the London Metal Exchange on Wednesday. Nickel lost 1.3% while zinc gained 0.5%. The Comex gold futures quote rose by US$7.80 to US$1,324.30 per ounce. Iron ore rose by US10c a tonne or 0.1% to US$96.60 a tonne.
Ahead: In Australia, employment data is released. In China, trade data is released. In the US, wholesale inventories are expected.
[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
- Celebrities Suffering From Lupus: Facts About the Disease
Join the Conversation
- 5 Marketing Nuggets We Can All Learn From Lady Gaga
- Malaysia Airlines MH17: Multi-Million Pound Law Suit Looms Over Putin’s Head, Assets At Risk
- Ebola Virus on the Loose: World Cautioned as Infection Moves; Global Airports on High Alert; Kills Liberian Doctor, Infects American Worker
- 5 Uncanny Jobs That Actually Pay Very Well
- Advisory: Britons Told to Leave Libya ASAP, UK Issues Travel Ban
- Apple iPhone 6 on Two Confirmed Release Dates, New Parts Leaked Suggesting Bigger iPhone to Come
- Google Nexus 6, 8 with Android L on Release Date Promises Killer Mobile Device Experience
- iPhone 6 Release Date Relevance to iOS Newbies: Specs Meaning, Price Considerations
- Xiaomi Mi4 vs OnePlusOne vs Nexus 5: Mi4 is the ‘Perfect’ Phone
- 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]