Australian Stock Market Report – Morning July 25, 2014
By Craig James, CommSec Chief Economist | July 25, 2014 8:54 AM EST
* US economic data: New home sales fell by 8.1% in June - the biggest decline in almost a year. US jobless claims fell by 19,000 to 284,000 - the lowest level in nearly 8½-years. US Flash PMI fell from 57.3 to 56.3 in July, below analyst expectations for a reading of 57.5.
A trader works by the post where Verizon is traded on the floor of the New York Stock Exchange in this file photo taken February 21, 2014. Verizon Communications Inc, the largest U.S. wireless telecoms company, reported a 6 percent rise in quarterly revenue as its postpaid wireless subscriber additions rose 53 percent, July 22, 2014. REUTERS/Brendan McDermid/Files (UNITED STATES - Tags: BUSINESS)
* European shares rose on Thursday as better-than-expected economic data and strong corporate results in Spain supported optimism about the regionsrecovery. Spain's IBEX rose by 1.9%. Portugal's PSI 20 rose for a second day up 1.4%. The FTSEurofirst 300 index rose by 0.5%, with the German Dax up by 0.4%, while the UK FTSE 0.3% higher. Australia's major miners were higher in London trade with shares in BHP Billiton up by 0.8% while Rio Tinto rose 1.5%.
* US sharemarkets were mostly flat on Thursday as corporate earnings painted a mixed picture of the economy. Facebook shares jumped 6.5% and hit an intraday record high, a day after reporting earnings that beat expectations. Caterpillar raised its full-year outlook but posted a decline in sales and the stock slid 3.1%. The Dow Jones index fell by 3 points. The S&P 500 index gained 0.1%, while the Nasdaq fell by 2 points.
* US treasury prices fell on Thursday (yields higher) as the upbeat jobless claims figures boosted demand for growth assets. US 2 year yields rose by 2pts to 0.49% while US 10 year yields rose 4pts to 2.51%.
* Major currencies were mixed against the US dollar following European and US sessions on Thursday. The Euro rose from lows near US$1.3440 to around US$1.3485, before ending US trade near US$1.3465. The Aussie dollar fell from highs near US94.50c to lows near US94.10c before ending the US session near US94.20c. And the Japanese yen traded between 101.40 yen per US dollar and JPY101.85, ending US trade near JPY101.80.
* World oil prices fell on Thursday, as weak demand from European miners and IMF cuts to Chinese and US growth forecasts weighed on prices. However political tensions in the Middle East and the lift in Chinese factory activity kept a floor on prices. Brent crude fell by US94c or 0.9% to US$107.19 a barrel and the US Nymex price fell by US$1.05 a barrel or 1.0% to US$102.07 a barrel.
* Base metal prices were higher on Thursday supported by the lift in Chinese manufacturing activity to a 18-month high. Copper outperformed up by 2.0% while other metals rose between 0.6%-1.3%. Gold prices eased on Thursday with the Comex gold futures quote down by US$13.90 or 1.1% to US$1,290.80 per ounce. Iron ore fell by US70c on Thursday or 0.7% to US$93.60 a tonne.
Ahead: In Australia no economic data is released. In US data durable goods orders are 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
- Jeremy Lin, Kobe Bryant Among The Top 5 Overpaid Players In The NBA (Part 1 - Western Conference)
- Reasons Why Michael Jordan Is Better Than LeBron James [PHOTOS And VIDEO]
- Dwyane Wade, Joe Johnson, Amare Stoudemire Among Worst Contracts In The NBA (Part 2 - Eastern Conference)
- Brawl-Marred Game in NFL Week 3: Philadelphia Eagles 37, Washington Redskins 34 [PHOTOS]
Join the Conversation
- New Samsung Galaxy Note 4 and Galaxy S5 Android 5.0 L Killer Features, Encryption and More
- Google Release Roundup: New Nexus 6, Nexus 8, Android 5.0 L Launch and Killer Features
- Nexus 6, 8 Release Date is Halloween 2014 as Android L Intro Set for October 16
- Moto G 2014 v Asus Zenfone 5 – Specification Comparison Shows Zenfone 5 Is A Good Alternative for Moto G
- Nexus 8, Nexus 9 Release Date, Device Name And Price Conundrum: What To Expect?
- New Zealand Could Be Next ISIS Target After Australia Beheading Plot, Says Expert
- China Is Also Seizing Disputed Land Along Indian Border