Daily Market Reports | Feb 03 2011
By Greg Peel
The Dow rose one point while the S&P fell 0.3% to 1304 and the Nasdaq was steady.
The big news last night of course is that it was Groundhog Day in the US. Punxsutawney Phil emerged from his burrow but did not see his shadow, meaning spring will be early this year. That's goods news for Americans currently suffering a Big Freeze which is providing a counterpoint to Australia's Big Sauna (at least in Sydney).
The big news last night of course is that it was Groundhog Day in the US. Punxsutawney Phil emerged from his burrow but did not see his shadow, meaning spring will be early this year. That's goods news for Americans currently suffering a Big Freeze which is providing a counterpoint to Australia's Big Sauna (at least in Sydney).
Cyclone Yasi crossed the Queensland north coast at midnight last night at Mission Beach between Cairns and Townsville with all the ferocity predicted, albeit its strength was downgraded from Category 5 to 3 at the crucial time. I'm not sure what it is Queenslanders have done in recent times but someone's obviously upset. All the best to everyone in FNQ.
Having reached the 12,000/1,300 marks Wall Street was ready to take a breather last night. As I assumed in this Report yesterday, Egyptians were not happy with President Mubarak's announcement he would not step down until the September elections. What was a peaceful protest on Tuesday turned ugly last night as the people vented their anger. Meanwhile, the King of Jordan sacked his government in response to the same popular movement. The entire region is at a flashpoint and the result could go either way. It has also occurred to me that Libya, which sits between Tunisia and Egypt, has been awfully quiet.
Wall Street is currently holding its breath.
The data point of significance in the US last night was the ADP private sector employment survey which suggested a better than expected 187,000 jobs were added in January. Egyptian influence aside, any positive response which might have been gleaned from this data was undermined by the adjustment to the December figures. Previously ADP had reported 297,000 new jobs in December but last night that was revised down to 247,000. Hey, what's 50,000 jobs between friends?
The official non-farm payrolls data will be released on Friday night. That's usually a guess and giggle as well.
On Tuesday the US dollar index fell sharply to reflect the peaceful “million man march” but as Cairo blew up last night, the greenback crept higher once more, up slightly to 77.10. The Aussie slipped a bit to US$1.0087.
Gold's playing a funny game at present. One might expect a renewed surge on geopolitical risk but right now gold is largely tracking the dollar (conversely) and it fell US$4.60 last night to US$1336.40/oz. The lack of old-fashioned safe haven-seeking probably reflects the fact the world is loaded up on gold at present.
Oil appears also to be waiting to see what happens next, rising only US9c last night to US$90.86/bbl. Copper made a run at US$10,000/lb last night but fell at the last hurdle. All metals retreated in the afternoon in London to close mostly flat.
The SPI Overnight rose 4 points.
Today in Australia sees the all important monthly trade balance data along with building approvals. Today is also service sector PMI day across the globe, kicking off locally.
Today begins the new lunar year so to our Chinese friends who aren't out partying, again I say Kung Hei Fat Choy.
FNArena editor Rudi Filapek-Vandyck will feature on Sky Business's Lunch Money today between 12-1pm and tomorrow he will participate in another video recorded Friday Afternoon Round Table on BoardRoomRadio.
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