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Jan 13, 2014

Morning Market Report

A big start to the year, with Foxtel leaving the ASX and Telstra selling off the majority of Sensis.

  • The market is down seven points. The Dow Jones was down eight at 16,437. The market fell early in the day then traded in a narrow bank, closing at the top end of the band.
  • The nonfarm payroll report showed only 74,000 jobs were added during December, much lower than the almost 200,000 expected. Even more disappointing was the continued decline in the participation rate to 62.8%, the lowest since 1978. Due to the fall in the participation rate, the unemployment rate fell to 6.7% from 7.0%. Some of the commentary suggested the data was negatively affected by weather-related factors.
  • The S&P rose four points to 1842.
  • Oil was up 1.16% at US$92.72.
  • Gold rose $17.50 to US$1246.90 per ounce.
  • The US$ was weaker against most major currencies. The Aussie dollar was stronger and is currently trading at US89.97c.
  • VIX volatility index fell 5.82% to 12.14.
  • US treasury markets were stronger — the yield on the 10 year bond fell 10 basis points to 2.860% following disappointing nonfarm payrolls (jobs) data.
  • European shares were stronger — the UK FTSE rose 0.73%, the German DAX was up 0.55% and the French CAC rose 0.60%.
  • European bonds were weaker — the yield on the Euro 10 year bond rose one basis point to 1.843%. The UK 10 year bond yield rose two basis points to 2.871% and the French and German yields rose by one and two basis points respectively.
  • Base metal prices were stronger — led by nickel up 3.86%, tin up 1.5% and copper up 1.29%.
  • Iron ore was down US$0.30 at US$130.70 a tonne.

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