Posts Tagged ‘DAX’

Stock Market Analysis: Gold at Record Again; U.S. Markets up for the second week

Monday, June 21st, 2010

Stock Market Analysis

Gold Record Again; U.S. Markets up for the second week

U.S. stocks ended the day flat but are up for a second week. Across in Europe, Spain successfully auctioned off it’s debt to refresh it’s funds and plans to publish banks’ stress test results in the next few weeks, this lead to improved investor confidence. Our market is likely to open flat with Telstra and Gold stocks to provide support.

The SPI Futures is above the key level of 4500 the ASX is set to open flat as the SPI closed up 6 points (or 0.1%) at 4,566. Key levels this week are 4450 and 4650. Expect our market to trade flat today with gold stocks again in focus as the precious metals reaches record highs, also expect to see some action in Telstra after progress on the $11 billion NBN deal.

U.S. Markets

Miners, and in particular gold miners, lead again the U.S., as the precious metal again closed at new highs. Friday in the U.S. also saw the options and futures contract expire which bought about an increase in trading volumes but market volatility overall decreased. In the U.S. the index of leading indicators, a key gauge of the outlook for growth over the next three to six months, rose 0.4 per cent in May, while other data showed the cost of living dropped and the claims for jobless benefits unexpected increased to the highest level in a month. The data is confirming that even though the U.S. economy will keep expanding in the second half of 2010, it will be with begin with inflation and little job growth.

The Dow  rose 16 points, or 0.2 per cent, to 10,450 (up 2.2% for week),   while in the broader market the S&P 500 index gained 1 points, or 0.1 per cent, to 1,117 (up 2.4% for week), and the tech-heavy Nasdaq ended flat at 2,310 (up 2.9% for week).

European Markets

In Europe markets ended flat but have had positive moves in the past two weeks, as the German market continue to perform well. The primary focus has been on Spain and successful bond issues and plans to publish its banks’ stress test has resulted in improving investor confidence. The International Monetary Fund (IMF) are “very confident” over Spain’s efforts to shore up it banks and reduce its budget gap. Spain is the fourth-largest of the 16 country EU economies behind: Germany, France and Italy.

In the U.K. the London FTSE 100 index added 3 points, or 0.06 per cent, to 5,251 points (up 1.8% for the week). The German DAX gained 6 points, or 0.1 per cent, to 6,217 points (up 2.2% for week), while in France, the CAC 40 rose 4 points, or 0.1 per cent, to 3,687 points (up 3.9% for the week).

Asian Markets

China has made a move on its currency ahead of this weeks’ G20 meeting, by announcing it will be removing its two year yuan peg to the US dollar, not in a one-off revaluation but will be appreciated in an orderly manner. This is potentially good news for our miners because a strengthening in Chinese currency will make our resources cheaper.

In Asia the Nikkei index of the Tokyo Stock Exchange eased 0.1% to end at 9,995 (up 2.7% for the week). The benchmark Hang Seng Index was up 0.7% at 20,286 (up 2.2% for the week), and China underperformed down 1.8% at 2513 (down 2.2% for the week).

Oil prices finished the week above US$77 a barrel overnight as U.S.  The benchmark crude NYMEX for July delivery up US$0.39  to settle at US$77.18 a barrel.  Copper prices finished down again but remains around the critical $US3.00 a pound. Copper for July delivery fell 2.1 cents to settle at $US2.882 a pound. Gold closed at a record on concerns about the pace of the U.S. recovery, with August gold jumped  $U9.60 to settle at $US1,258.30 an ounce.

Key News Drivers Today

G20 – meeting to be held in Toronto this week.

IMF – are “very confident” over Spain’s efforts to shore up it banks and reduce its budget gap. Spain is the fourth-largest of the 16 country EU economies behind: Germany, France and Italy.

YUAN – China to end its twp-year yuan peg to the US dollar.  China has signalled a “more flexible yuan” currency policy, which will allow its currency appreciate in an orderly manner against the US dollar.  The yuan has been pegged at 6.83 against the US dollar since mid-2008.  It will not be a one-off revaluation.

RSPT Tax – is based on a “flawed” economic theory according to a new study commissioned by the mining industry. They also said the tax will extensively impact job losses and lead to increased volatility in Austalias tax revenue base.

Markets Overview

U.S. Markets Up for Second Week; Gold Shines

SP500: flat at 1,117 – Above 200 day Moving Average  (up 2.4% for week)
DOW up 0.2% at 10,450 – Above 10,000   (up 2.2% for week)
NASDAQ: up 0.1% at 2,310  (up 2.9% for week)

Dollar Index: lower at 85.33 on Higher Euro
A$ higher at 87.96

FTSE: flat at 5,250 – Financials Weigh  (up 1.8% for week)
DAX down 0.1% at 6,217 – Still in Outperforming  (up 3.0% for week)

CHINA: down 1.8% at 2,513 (down 2.2% for week)
HSI  up 0.7% at 20,286 (up 2.2% for week)

Oil: up 0.2% ($77.18)
BP Faces Off Congress

Gold: up .9% at ($1,256)
Commodities Mixed

SPI: Above key Level 4500 ASX
SPI up 0.1% at 4,566

ASX News

The SPI Futures is above the key level of 4500 the ASX is set to open flat as the SPI closed up 6 points (or 0.1%) at 4,566.   Key levels this week are 4450 and 4650. Expect our market to trade flat today with gold stocks again in focus as the precious metals reaches record highs, also expect to see some action in Telstra after progress on the $11 billion NBN deal.

AUD – higher at 87.95

AMU – Amadeus Energy has revealed it’s the target of takeover moves by U.S. companies.

ALS – Alesco will post a $126 million net loss in FY10 and suspend its dividend until March 2011, due to impairments and one-off expenses.

ANZ – has signed a memorandum of understanding (MoU) with China Development Bank (CDB) to drive trade and investment  flows between China and NZ.

BXB – may lose business to its U.S. rival iGPS, as the U.S. company has told investors it is close to
winning more business from Brambles. This news added to the concern that BXB could miss earnings expectations when it reports in  August. Shares were down 4.8%.

CFE – An ASX trading ban on two companies connected to controversial Romanian entrepreneur Frank Timis has been overturned on appeal. The ban on International Petroleum (IPO) and Global Iron (GFE) from trading was “infected by error”, an appeal by the companies to the ASX found. CFE could be indirectly affected by the decision.

GRR – Grange Resources the iron ore miner says a rock slide at its Savage River mine in Tasmania on Thursday is not expected to affect the operation.

CSD – Consolidated Tin Mines, the junior tin exploere says it will begin talks with potential Chinese customers and joint venture partners for its Mt Garnet project in northern Queensland.

DJS – management will meet with its biggest shareholder (Ausbil) this week to discuss its plan to defend its brand as a result of last weeks’ surprise resignation of CEO Mark McInnes.

ELD – in a trading halt as Elders the rural services provider Elders is expected to issue a trading
and operational update next Tuesday morning.

GFF – Goodman Fielder says it has raised $350 million worth of unsecured notes in the U.S. to help repay bank debt.

MAP – has experienced strong growth in passenger numbers at its three Australian and European airports in May, with operations returning to normal after the volcanic ash
cloud over Europe in April.

SDL – likley to be in a trading halt as six mining execs including Ken Talbot (formerly of MacArthur Coal) are missing, reared dead, in the Congo, West Africa on missing plane.

TLS - to receive $11 billion from the government in exchange for sharing its infrastructure with the NBN and migrating customers to the new fibre network.  This is a huge step in resolving issues between the government and Telstra re the NBN roll out.

Economic Reports out today:

ABS – reports on international merchandise imports and motor vechiles sales data for May

KEN – Henry to address the Institue of Chartered Accountants tax reform conference today

Market volatility will continue near term, some speculative accumulation is underway.

We the suggest trading strategy is to tighten stops. Be prepared to take profits, remember we are trading into the end of the financial year.  Trade gold and Telstra stocks today.

Market Summary

ASX – to open flat
US & UK/Europe – flat
US ADRs – Generally Positive!!!…

BHP up 1.2% & RIO up 0.6%; AWC 2.6%
ANZ up 2.1% & NAB up 1.4%
NEM up 2.6%, JHX down 0.9%, NWS down 0.3%

Commodities Stock Index up 0.7%
Gold Stocks Index up 1.4%
Oil Stocks Index up 0.7%

By Michael Hevern
Head of Research

Make the most of the trading tips and market analysis provided in this blog – take advantage of our low brokerage rate of $19.50 and trade shares with Trader Dealer. Also get FREE live ASX Data until December 2010 with our online trading platform Rapid Trader.

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Friday, 14th May 2010 Morning Wrap

Friday, May 14th, 2010

Presented by Michael Hevern
MDS Financial

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US Markets
Concerns over the Sustainability of the Recovery

U.S. stocks fell on Thursday as downbeat comments on the economy from tech company Cisco Systems Inc which cast doubt on the strength of the U.S. recovery. Home Builders also suffered with the index down 4%, while Financials also weighed on the back of Morgan Stanley facing investigations about their CDO products offered before the GFC.

The SPI Futures is below key level of 4700 (see chart) the ASX is set to open lower as the SPI closed down 51 points (or 1.1%) at 4620. Expect to see profit taking today.

SP500: down 1.2% at 1,157
DOW down 1.1% at 10,783
Broadly Lower – Lead by Financials & Home Builders

NASDAQ: down 1.3% at 2,294

Dollar Index: Strong at 85.4, Euro Weakens to 14 Month Lows
A$ up 89.33c

FTSE: Up 0.9% at 5,434 – Brown Out!; New Government
DAX up 1.1% – ECB $1T Rescue

Oil: down 1.1% at ($US75.50)
Recovers Despite Inventories Building

Gold: down 0.8% at ($US1,233)
Commodities Weigh;

SPI: below key 4700 ASX
SPI down 51 (1.1%) at 4620

ASX News

ITO – interesting trading on the close. Traded $30.6 million shares at $1.10.

TSI – has completed the insto phase of its $110 million capital raising. Instos took up $80 million and the rest will e made available to existing retail investors at 5 for 12 rights. Record date is 14 May’10.

AWC – was one of the few stocks that rose in the ADRs overnight.

AMP – is in talks with French group AXA SA over how to revive its rejected takeover bid for AXA Asia Pacific and make it attractive enough to get a board recommendation. AMP would have to match the cash terms of NAB’s $14 billion deal to stand a second chance.

ASX – to open lower

US & UK/Europe – mixed leads

U.S. ADRs – Broadly Negative!!!…

BHP up 0.1% & RIO down 0.2%; AWC up 1.7%

ANZ up 0.4% & NAB flat

NEM down 2.7%, JHX down 0.6%, NWS down 1.6%

Commodities Stock Index down 1.0%

Gold Stocks Index down 1.2%

Oil Stocks Index down 1.1%

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Wednesday, 12th May 2010 Morning Wrap

Wednesday, May 12th, 2010

Presented by Michael Hevern
MDS Financial

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US Markets
Pullback After Surge on European $1Tn Bailout Package

SP500: down 0.3% at 1,155.8

DOW down 0.3% at 10,748

Broadly Lower – Investors Nervous

NASDAQ: flat at 2,375

Dollar Index: Strong, Euro Weakens
A$ up 89.33c

FTSE: Up 5.2% at 5,387.4 – Brown Out!; New Government

DAX up 0.3% – ECB $1T Rescue

Oil: down 1.1% at ($75.90)

Lower – focus still on oil spill in Gulf of Mexico

Gold: up 2.6% at ($1,232)
Commodities Weigh;

SPI: below key 4600 ASX

SPI up 20 (0.4%) at 4577

ASX News

Budget – refer to blog post

Banks – to benefit from budget: Super changes; and tax incentives for savings, however these savings will be limited to the first $1,000 of interest earned (an extra $177 in your pocket).

FMG – JBWere figures show the government’s proposed resource rent tax could strip a third of earnings from the company. ”Fortescue has a greater impact for its earnings and valuations, and its impact from spiking prices than BHP Billiton, as Fortescue has all its operations in Australia, all its exposure to high-margin iron ore and, unlike BHP Billiton, has no petroleum exposure, which is already subject to the petroleum resource rent tax,” Goldman said.

PDN – Paladin – Uranium One the Canadian operator has increased its stake.

Gold miners will be in focus today, including: Lihir and Newcrest; KCN, RSG, Equinox, PNA, as gold prices are at new highs.

AIO – the ports and rail operator will write down the value of its assets by $1.1 billion, which will see the company report a third straight annual loss.

Note the Market volatility is on the rise and we the suggest trading strategy is to get small, reduce you exposure to equities. Be prepared to open/hold short positions.

ASX – to open lower

US & UK/Europe – negative leads

U.S. ADRs – Generally Negative!!!…

BHP down 2.9% & RIO down %; AWC down 6.6% ANZ down 3.3% & NAB down 3.3% NEM up 4.9%, JHX down 1.0%, NWS down 1.1%

Commodities Stock Index down 0.5%
Gold Stocks Index up 5.5%
Oil Stocks Index down 1.2%

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Thursday 12th February 2009 MDS Morning Wrap

Thursday, February 12th, 2009

Presented by Michael Hevern
MDS Financial

Click here to watch the presentation.

or

Click here to download the mp3 audio recording (897Kb).

*********************************************

In this morning’s wrap…

World Indices
DOW up 0.6%

  • banks grilled by Congress

NASDAQ up 0.4%

  • Lack of detail in stimulus package
  • Apple down, Microsoft and Cisco up

US Stimulus plan

  • funding to buy toxic debts
  • additional capital for banks
  • $US50bn to prevent foreclosures
  • Strings attached to monies: salary caps, dividend restrictions & acquisition constraints

FTSE up 0.5%

  • RIO up 3.5%, on Chinalco deal.

CAC up 0.2%

DAX up 0.5%

Commodities
Oil down 4%

  • US inventories confirming supplies are increasing, falling global demand

Gold up 2.5% ($940)

  • weaker US dollar

Silver, lead and zinc up; copper and nickel down; aluminium flat

Commodities stocks index flat
Gold stocks index up 8.2%

  • US Dollar falling

Oil stocks index down 0.4%

Local market
SPI up 13 points

  • Rio Tinto, Leighton and Coca Cola to report

ASX News
CBA: profits down by 16%; bad debts soar
CPU: 1H profits down, free cash flow up 26%
Miners likely to recover today
Energy to weigh
Banks will hold ground
Look to gold for support
ASX likely to open higher

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Wednesday 11th February 2009 MDS Morning Wrap

Wednesday, February 11th, 2009

Presented by Michael Hevern
MDS Financial

Click here to watch the presentation.

or

Click here to download the mp3 audio recording (850Kb).

************************************************

In this morning’s wrap…

World Indices
DOW down 4.6%

  • US Senate passed the $US838bn stimulus package, but not enough detail for the market
  • bouncing below 50-day moving average

S&P 500 down 4.9%

NASDAQ down 4.2%

  • US Treasury s Bank Stabilisation Plan passed
  • Apple, Microsoft and Cisco down

FTSE down 2.2%

  • lower commodity prices affecting energy and material stocks

CAC and DAX down 3.5%

NIKKEI down 0.3%

  • expect a selloff today
  • concerns about strength of the Yen

Commodities
Oil down 4%

  • below $40 level ($38)
  • continuing oversupply and falling demand

Gold up 2.7% ($917)

  • continuing an upward rising channel since mid-October

Silver up 2.2%
Aluminium, lead, copper, nickel, and zinc all down.

Commodities stocks index down 5%
Gold stocks index down 2.3%
Oil stocks index down 5%

Local Index
SPI down 80 points

  • expect a selloff this morning

ADRs
RIO down 4.5%
BHP down 9%
Alcoa down 10%
Alumina down 6%
ANZ down 7%
NAB down 8.5%

  • our market likely to open sharply lower today

ASX News
JB Hi-Fi: positive results for 1H09
Cochlear: 1H09 profit growth fastest in 3 years
AWB: forecast 1H09 profit down 55%
SUN & IAG: bushfire and flooding bill escalates
Miners and Energy to retrace
Banks to weigh
Look to gold for support

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Tuesday 10th February 2009 MDS Morning Wrap

Tuesday, February 10th, 2009

Presented by Michael Hevern
MDS Financial

Click here to watch the presentation.

or

Click here to download the mp3 audio recording (917Kb).

**********************************

In this morning’s wrap…

World Indices

DOW flat, down 0.7%

  • traders and investors awaiting resolution of stimulus package
  • banks up early but sold late
  • McDonalds January sales up

NASDAQ and S&P 500 flat

  • US Treasury s Bank Stabilisation Plan delayed

FTSE up 0.4%

  • Banking stocks the focus
  • Barclays: better than expected profits
  • EU need to address toxic bank debt

CAC and DAX up slightly

NIKKEI down 1.3%

  • just above 7900 level
  • China steel demand recovering

 
Commodities

Oil down 0.5% ($39.85)

  • oversupply and falling demand

Gold down 2% ($897)

  • USD strengthening

Silver, aluminium, lead and copper down, nickel flat, zinc up.

Commodities stocks index flat
Gold stocks index down 2.5%
Oil stocks index flat

 
ADRs

Alumina up 3.2%
BHP up 1.3%
RIO sold off significantly
Newmont down 2.8%
Chevron down 0.8%
Exxon down 1.5%
ANZ down 1.2%
NAB up 1.5%

 
Local Market

SPI up 27 points

  • no lead from overseas
  • critical levels 3420 and 2550

 
ASX News

First Half results from JB Hi-Fi, IOOF, Australian Wealth Management, Ridley, Cochlear.
Full Year results from AAC and Reckon
Aristocrat: double loss estimate
SUN: resumed Ex-entitlement down 21%
RBA: Governor talks at Kuala Lumpur conference
BHP: to see profit taking
RIO: chairman-elect resigns
Gold and Energy likely to retrace
Banks trying to hold current levels
ASX likely to open flat, no direction from the US

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Wednesday 12th November 2008 Cube Morning Wrap

Wednesday, November 12th, 2008

Presented by Michael Hevern
Cubefinancial

Click here to watch the presentation.

or

Click here to download the mp3 audio recording (1138Kb).

Transcription below:

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Good Morning and Welcome to Cube Wrap for Wednesday, the 12th of November, I’m Michael Hevern for Cube Financial.

The information provided within this presentation is general advice only and you should consult the services of a financial professional in order to ascertain whether the information is applicable to your investment strategies and risk profile. Again, it is general advice only.

Well, DOW broke through that support level and you can see that on the chart overnight on the back of the concerns about the global economic slump and also continuing for economic use going out of the various companies. We saw Alcoa cutting back their production going forward and also there was a response to the China stimulus package that was announced in the previous session. We saw the NASDAQ also pullback to 0.2%, looks like that market is said to test its lows of October. Dell and Google have been downgraded there by Goldman Sachs and it is a general concern about the growth of the economy going forward.

We saw commodity stocks were down. Energy and tech stocks were also down across the board. We saw Starbucks as a gauge of retails pending cut back there. Profit forecast going forward and that disappointed investors and stocks that sold down 3%. .

GM continues its slide with 5th straight day of selling down 9.2% on the session and it is in variable troubles as far as concerned. The key stocks in the NASDAQ, Google down 3% and said Goldman Sachs have downgraded that company. Also Barclays has downgraded Dell and it was down 5% on the session.

Across in the UK, we saw that the market was also down 3.6% finishing at 4246. Looks like its going to do at the very least, test the levels there of the retracements levels of the move over the past 3 weeks and the selling was again generally across the board with banks and commodity stocks all down. We saw the energy stocks, as of BP, BG group, and Royal Dutch Shell down between 4% and 10% on the session.

The big miners, BHP, RIO, Vedanta, and Anglo all down between 7% and 14% on the session. Banks also weigh with Lloyds Bank down 9% and HBOS was also down 8% on the session as well as Standard Chartered from HSBC down 4% and 5% on the session. It was some array of hope in the UK market in the defensive stocks Vodafone rose 6% being seen as a defensive player and also Smith Cline was up 1% being a defensive pharmaceutical sector exposure there.

Elsewhere in Europe, we saw the DAX down 5% and the French CAC was down 5% as well. So that negative lead from the UK also fled into the European stocks. We saw in Asia that that market was down 3% just at best it’s going to test the big levels of its 10 day move and however we would see that actually just below as well. At the very least it can afford to be just down to that bottom demand of around that 7400 level.

The recovery on the back of the Chinese stimulus package was short lived and we saw profit taking overnight. We also saw that trading companies, which did spike up on the back of the stimulus package of China held their gains with high construction of 3% and commodity was still up 1.5%. However, we did see the problems in the auto sector from the US fled through to the Asian markets with Toyota down and also Sun was down as well.

Elsewhere in Asia we saw the Hong Kong share prices closed at 4.8% buy and Chinese stocks actually closed down 1.7% lower.

In the commodities markets, we see that oil suffering from the like of global demand, continues to pullback in think that downtrend line there that has head off the support for that it’s a fair way away all the way back of 50 dollars. We also saw that the Chinese stimulus package did really flow on to increase the prices in that regard.

We also saw gold pullback, it was down around that 10 dollars to finish at 733 and that meant that all the other commodities pullback as well with sliver down 4%, copper down 6.3%, lead down 5.3%, zinc was on the few commodities was up 1% and aluminum and nickel were down 2% and 5% for the session.

On the ASX, we look to test the recent lows of October. SPI was down 69 last I saw and we would be looking to very least there testing that demand retracement level there which is around about the 3800 level.

The other news that is in the ASX market today, we saw Asiana going to trading all yesterday after the Citi two brokers cam out with severity notes about the company the company Citi headline there as crisis of confidence [which meant that the stock actually sold off around at 60% on open.

We also saw the banks weigh heavily yesterday. The issue there is that they do have exposure to all the problems with the world economy. They do have exposure to Asiana and thus is unsure what extend of exposure is to that stock if it does have to go into conception.

Alumina also seeing 2% on the back of it saying that is was cutting back on one of their projects and that would result in the cut back in aluminum production.

In going forward for 2009, NAB seemed to be sitting pretty there, snapping up at 3 billion dollars worth in capital rising; however, they did trade around about the 20 dollar mark, which is the level of the raising that was done at.

We also saw, we will expect that commodities down overnight so we would expect energy and material stocks also weigh on that market today. We expect that market to open lower and again there is busy news breaking in the US. This is another note that is of interest, the gold stocks in the US had been sold down heavily as a result of the Obama win in election and that is being flowing through to our coal stocks as well. We see Felix down 14% Glossip Coal down 6% and that is on the fact that the Obama government is going to be recommending greener types of energy stocks of energy and they are saying that they will support their going forward.

Should you have any questions about the information provided within this presentation, please call the equities and options desk or the CFD advising desk on the numbers provided, and as always trade carefully.

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Thursday 6th November 2008 Cube Morning Wrap

Thursday, November 6th, 2008

Presented by Michael Hevern
Cubefinancial

Click here to watch the presentation.

or

Click here to download the mp3 audio recording (1104Kb).

Transcription below:

*************************************************************************

Good Morning and Welcome to Cube Wrap for Thursday, 6th of November, I’m Michael Hevern for Cube Financial.

The information provided within this presentation is general advice only and you should consult the services of a financial professional in order to ascertain whether the information is applicable to your investment strategies and risk profile. Again, it is general advice only.

Well the Dow had a bitter dose of reality overnight as the euphoria about the Obama landslide starting to settle. We also saw energy and metal prices down on the back of the stronger USD, sell stories, and sell on the fact. We saw the Dow down 5%, the S&P 500 down 5%, and the NASDAQ down 5% on the close as well. We can see there each of those markets is bouncing off the top of the Bollinger bands there, which we did mention yesterday and it is all back to the economy, stupid. We have US service sector figures released down to 44 for October, that is down from 50 in September, 50 is an indication that the services or manufacturing sector is falling and the figures were worse than expected.

We also saw that the Fed interest rate payments on reserves are expected to increase on both required and excess reserves by depository institution of the central banks and we also see that markets are starting to focus back on the economy since all the media hot about the elections is over.

We see also in the UK that that market was down 2% on the session and in a 6-day winning streak there, again bouncing off the downtrend line there that we did highlight yesterday. The stocks in the news over there included oils, miners with the top losers as commodity prices fell and also insurers and pharmaceutical were also in the news as a result of the changing policies that will be coming force from the Obama.

We see that BP, Shell, and BG all down between 2% and 5% on the session where the Shell did trade its dividend and of the big miners Anglo, Vedanta, Eurasian Natural Resources, Kazakhmys, and Xstrata all down between 6% and 12% on the session, but they did have a good run over last few sessions. There was also economic data which indicates the service sector is also shrinking at the fastest pace since 1996 and that figure came from the Chartered Institute of Purchasing & Supply. This data added weight to the fact that the Bank of England will cut interest rates on those labors tonight and suggested the cut would be between 50 and 100 best points. Banks were weaker. The banking index was down 0.8% in the UK; however, Barclays and Royal Bank of Scotland were up around about 5.5% on the session. Our mutual insurance was down 9% after going its dividend and also Morgan Stanley downgraded the rating on that particular stock from over weight and elsewhere in the insurance sector, we saw that way as well. Aviva down 7% and 2% respectively.

Elsewhere in Europe, we saw the drug stocks weigh on the market. Navitus was down 5% and Glaxo Smith Kline down 4% as analysts digested what will happen in the US as a result of the election on Wednesday.

We also saw the DAX down 2% on the session and CAC also down 2%.

In Asia, we saw that market up 4.5%, the highest close since October 15 and you can see there that market is looking to test up and up Bollinger bands as well. However, we did see broad-based advance there with the advanced declines ten stocks up for everyone that was down, so pretty broad-based there. We saw big recoveries in lot of stocks that had been sold off real heavily that 7 days ago and we saw energy stocks up on the back of the higher oil price with also the banks recovering significantly with Mitsubishi and Mitsui up 11% and 12% respectively and Supuro the other large bank there was up 16%. We also saw the exporters recover significantly as well with Honda up 13%, Canon up 13%, and Toyota up 10% on the session. They had been sold down overly but they are recovering quite remarkably. Elsewhere in Asia, we saw Hong Kong up 3% on the session and Chinese market was also up 3% on the session.

In the commodities market, the story there is the USD has strengthened on back of the quick resolution to the US election and we saw oil back off 7% low at 65 dollars. We can see there it looks to be stuck in a trading range between 17 and 60 dollars at the moment. We are still concerned about OPEC, but they will continue to cut production, that it will be putting a floor under the market and also we see in the gold market that was down around about 14 dollars of 742. Again as USD story there, buying of USD on the back of quick resolution in the US with the election. We also see that elsewhere in the commodities market that silver was up 3%, copper down 5%, lead down 2%, zinc down 5%, aluminum down 1%, and nickel down 5% on the session.

On our market, all eyes will be on their resistance level which we touched its level just over 4300. We would expect our market pullback from that as well given the lead from US as well and SPI was down 143.

Of interest in the ADRs, BHP was down 5%, Rio down 9%. Exxon and Chevron were down 5%. The gold stocks index was 5%. Banks were also lower with the ANZ ADRs down 6% and the NAB ADRs down 7%. We do have NAB is due to pay its dividend this week. We also have in the news that Leighton is holding and AGM today as well as Telstra holding rising that should be interesting there. We expect the energies and materials to weigh on that market. We will do open lower and we expect to see profit taking there.

Should you have any questions about the information provided within this presentation, please call the equities options desk or the CFD advisory desk on the numbers provided, and as always trade carefully.

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Friday 31st October 2008 Cube Morning Wrap

Friday, October 31st, 2008

Presented by Michael Hevern
Cubefinancial

Click here to watch the presentation.

or

Click here to download the mp3 audio recording (1288Kb).

Transcription below:

***********************************************************************

Good morning, welcome to Cube Wrap for Friday the 31st of October, 2008. I am Michael Hevern for Cube Financial.

The information provided within this presentation is general advice only and you should consult the services of a financial professional in order to ascertain whether the information is applicable to your investment strategies and risk profile. Again, this is general advice only.

Dow managed to finish up for the session after trading thought 350 point range with the triple digits yet again after the Fed cut their the interest rates to 1%. The GDP figures were also released and they were down for the quota 0.3%, which giving the worst figures seen since 7 years since 2001. Endless to say there is expecting to further decline in 2009. Consumer spending was also recorded and seemed to be the worst since 1980s. We had the Kansas City Fed releasing manufacturing figures saying that they hit a records low; the figure was minus 23 in October, minus 9 in September and was the worst reading that they have seen in the 14 years history of the Kansas City Index manufacturing index. The 3 months dollar level also fell shortly this week, jumping to 3.1925 for Wednesday that compares to a peak of 4.82% on October 10, so not much good news on the economic front over there, but the market did struggled out somewhat and wasn’t as bad as was expected.

We see also that in the NASDAQ, it was up 2.5% AMEX said that it will cut 10% of its work loss, that 7000 jobs, they are losing there and cutting as well another big companies in the US. The NASDAQ is seeing to be the biggest beneficiary in the economic revival. So, they have brought in through that downtrend line you can see there, similarly for the Dow. The Dow actually came into resistance today. The NASDAQ seems to have a bit more to go before it does reach the resistance levels.

We saw Apple up 6.2% and Intel up 8% on the session. They also benefited from a pullback in the oil price and airline index had surged 10% overnight. Exxon reversed its costs in the afternoon trading ending up 0.5% after it say that its profited exceeded expectations. Prudential was also the big mover on the day trading 18% after it released a significant quarterly loss. In rest of the market, we the New York stock exchange, four stocks eventual to every one. Finally, on the NASDAQ we saw 3 stocks rising for every one sale that is fairly broad based move there. It will be interesting to see whether we see that follow-through to night.

The UK saw that market up just over 1% stock to be 03 lows. The banks and miners actually moved, but that was despite below the commodities prices. We saw FTSE trading in a 150 point range and finishing that midpoint at that range. We also saw banks, Royal Bank of Scotland, HBOS, the Lloyds and Standard Chartered probably 24.4 and 10% on the session. Miners also held their own gain with Fin Data being the big mover up 16% on the session. We saw the BHP, Rio and GUSTAV all up 25 and 8% on the session.

Elsewhere, in the Europe we saw the French CAC up 0.2% and German DAX up 1.3%. The big news in the German market, Lloyd still inhabiting the Volkswagen its gone through a wild ride with short sellers and the short sellers aim that is something that hedge funds don’t want to see at the moment they were shorting the stock and they were caught in the short squeeze as porche said that they would assist or take a 756% stake in Volkswagen.

Going forward we see in the Asia, the Nikkei up significantly there, the trade closing at 5 day, bouncing of the 82 lows. We can the Bank of Japan said that they would likely cut rates causing a soft front in the Yen which will help exporters. Talking 3 days ago that 7 past level. It was actually at 9000, closing just above the 9000 last night, so huge volatility there.

We saw elsewhere in Asia that Hong Kong shares were up 13% and Chinese shares were up 3% on the session. In commodities, we saw the oil price pulled back on stronger US dollar and as traders took profits following the 5 dollar move in the previous session. We also saw gold pullback 15 dollars at 739 and that was around at 2% on the session. That has been a firmer US dollar in the climbing oil prices. We also saw in the commodities, the silver was down 0.2%, copper down 10%, zinc and lead down 8% and 4% respectively, and aluminum and nickel down 4% and 12% respectively. So this has been a significant pullback in those spikes in the prices in the prices that has happened from the last 6 to 10 days.

In our market we will see a test of the resistance level there on that downtrend line and there will all the much momentum today. We had expiry yesterday so we saw abit of short coming there as options holders squared up positions before expiry and we may so a bit of a spike this morning but it will be pulled back this afternoon.

In the ADRs of interest to us include ANZ was up by 0.6%. NAB was actually down 3% and US BHP got up, was doing fine with the catch up there up 8% on the session. Rio was up 11% on the session. That was despite the pullback in the commodity prices, but that did happen towards the end of the session.

We saw the gold stocks index up 11% and the oil stocks index up 3.5%. BHP was up 5% saw the oil stocks index up 3% and gold stocks index up 4%. We saw Newmont up 8%. We had RIO up 5%. Chevron index were also up 5 and 0.5%, so a slight pullback in the commodities prices the share prices seemed to hold up. We saw ANZ was up 3% and actually NAB was also 7% on the session.

We see that miners, BHP and RIO expected a bit of a spike with exercise option, but may be we can see this pull off at the end of the day, it is Friday remember Westpac reached their figures before market yesterday. The net profit for the year was up 12%, the cash EPS was up 6% and they did double their allocation for debts. So they are already up 4% on the close, but it look like pretty good report. MRE in the news saying that the raising 210 billion dollars, going forward and there were up for previous session 38%. Fosters are also saying that they going to delay the spin off there of their warrant assets at the moment. ASX is likely to open up on the open but just be careful it is Friday. It will be profit taking, pretty good rate for the short term traders and be careful at that.

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Friday 24th October 2008 Cube Morning Wrap

Friday, October 24th, 2008

Presented by Michael Hevern
Cubefinancial

Click here to watch the presentation.

or

Click here to download the mp3 audio recording (1180Kb).

Transcription below:

************************************************************************

Good morning and welcome to Cube Wrap for Friday 24th of October. I am Michael Hevern for Cube Financial.

The information provided within this presentation is general advice only and you should consult the services of a financial professional in order to ascertain whether the information is applicable to your investment strategies and risk profile. Again, it is general advice only.

DOW went for another roller coaster ride last night trading through a 500-point range and since buying was end of the session for a change. It has bounced off the lows of the last 10 days and as you can see there it is yet to break that down to end line which is on an early chart. The DOW was up 2% on the session, finishing at 8691.

Well SP500 was up 1.26 on the session, was good to say that it was buying towards the end of the session.

We saw the NASDAQ eventually down 0.7% there after having tested the very lows, Amazon and Microsoft came out with earnings, and also Microsoft leads expectations for sales and earnings, however, they did both earn of the subdued economic environment going forward which will impact their earnings. Some of the stocks of interest are GM are rumored to be looking to get more jobs and they would end it down 1.5% for the session. The Goldman Sachs actually announced the 2% cutting the job force for going forward and the stocks were down 5% for the session. Microsoft was up 5% after their earnings announcement however, they were flat after market.

Stocks meters for out market include BHP, the ADRs were down almost 3%, and RIO was flat for the session. Energy stocks did get a boost as head of the Opek meeting tonight. Chevron was up 8% and Exxon up 9% for the session.

The oil stocks index was up 6.9% and the gold stocks index was down 5% after gold being sold off since the overnight. Other stocks of interest, Newmont was down 6% for the session gold stocks today.

In the NASDAQ, we saw Apple up 1.4%, Microsoft up 4% for turning down later after market. Cisco down 1% for the session.

In the UK, we saw the energy stocks were up there this morning, so the index was down 1% overall and we saw the CAC and the DAX also down. DAX was down 1% while CAC was up 0.4% for the session.

We saw energy stocks BP, Shell and BG group were all up between 0.7% and 5% for the session. Vodafone recovered somewhat and sell off in the March few days, being up 5% as bargain hunters came in. Miners were also hit in UK with BHP, RIO, and Xstrata all down between 3% and 9% for the session. This BHP reiterated its short term demand that short term demand was faltering in the China and RIO was also noted both saying that they have cut their forecast for Chinese economic growth for 2009, to 8% to 9%. I think it was about12% previous 12 months.

In Asian markets, we saw that the NIKKEI down 2.5% after testing the lows of 2003, exposed bankers all were hit and there was a late rally, shortcoming rally in the last session of the day in Japan. We also saw Sony cut its earnings and upgrading month forecast by 57% and that is to be below the exporters over there. Nippon steel, steel maker to the market was down 2.2%. Hong Kong shares were down 3.6% and Chinese stocks were down 1% for the session.

Oil did recover overnight ahead of the OPEC meeting there, expected that the OPEC will cut the production to by 1 million barrels a day or more and that would appear positive for the price in short term at least. In December, gold was actually sold off heavily overnight. It was down over 20 dollars, closing at 714 for the session and there was the strengthening US dollar. We see that the level goes back to a breakdown level in 2007 and also was touched 2006. We would expect that all traders will be looking to for gold to be trying for the price of around 700 dollar mark level.

Silver was up 0.4%, we saw copper down 2%, lead up 2%, zinc up 5.6%, aluminum/nickel down 6.5%. Commodities mixed overnight.

In out market, SPI was down 63 points after significant buy in the last hour set of trading today on the back of the big move in the US and it did move around about 300 points in the last also. In US, out market set to follow what the US does at the moment. We are testing low yesterday for third time. We did write that level and it is noted to be very significant but out there are looking for the market to trade up above that down trending line which is as the level around that 4150 on the ASX200 which needs to be closed off in order to see changes there.

BHP and RIO and the EU reported they are going to report early next month. The objections to the RIO and BHP take over a bit and suggested that BHP will be required to divest some of their investment in order to for the deal to go head. DVB raising 1.6 billion dollars. Reuters have stated that this will be up to 60% discount to the existing price much over that that is occasional mark that Citi have come out in their target going from one target to around that dull 60 going forward.

Tancorp have said that they may be cutting their dividends going forward. That is a negative for that stock and Toyota is going to receive less royalties being down 53%, ASX will open flat today, maybe some target and is looking for opportunities with out market being sold down quite heavily this week. We remember it is Friday and we have all 3 days for the trading in.

Should you have any questions about the information provided within this presentation, please call the equities options desk or the CFD advising desk on the numbers provided on the slide, and as always trade carefully.

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