Stocks set to drop as markets lose bounce
July 30 (AAP) The Australian stock market is likely to open weaker this morning after a fall on Wall Street overnight.
But miners and energy stocks may gain after the price of metals and oil gained overnight.
This morning on the Sydney Futures Exchange, the September share price index contract was down 17 points at 4477 points. Yesterday, the major local indices closed fractionally lower.
What you need to know:
· The SPI was 17 points lower at 4477
· The Australian dollar was buying 90.05 US cents
· In the US, the S&P500 fell 4.60 points to 1101.53
· In Europe, the FTSE 100 fell 5.73 points to 5313.95
· Gold was up $US8 an ounce to $US1168.40
· Oil was up $US1.37 a barrel at $US78.36
· The Reuters Jefferies CRB index rose 1.52%
· Stocks to watch: possible market movers
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How we fared yesterday
The Australian share market snapped a four-day winning streak, finishing marginally weaker despite gains among miners and the banks.
The benchmark S&P/ASX200 index closed down 5.8 points, or 0.13 per cent, at 4524.1 points, while the broader All Ordinaries index fell 5.9 points, or 0.13 per cent, to 4536.2 points.
Offshore overnight
US stocks ended a choppy day with a modest loss as investors tried to reconcile another batch of conflicting economic signals.
The Dow Jones industrial average closed down 30 points after falling as much as 110 and rising 87. The other big market indices also closed slightly lower.
Thursday's trading fit with the market's months-long pattern. Investors are torn between upbeat earnings news from companies and reports that point to an uncertain recovery. That indecision was clear as stocks rose on strong earnings at Southwest Airlines Co, Exxon Mobil Corp and other companies, then fell on disappointment over a slight drop in first-time claims for unemployment benefits.
Traders were also uneasy ahead of the first reading on US gross domestic product for the April-June quarter, to be released Friday.
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The Dow fell 30.72 points, or 0.3 per cent, to 10,467.16. The Standard & Poor's 500 index fell 4.60 points, or 0.4 per cent, to 1101.53. The Nasdaq composite index fell 12.87 points, or 0.6 per cent, to 2251.69.
European stock markets closed lower, giving up early gains as Wall Street reversed direction despite a series of strong company results and economic data, dealers said.
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They said the turnaround reflected profit taking, with the overall tone positive and much more confident than just a few weeks ago when investors fretted over Europe's debt crisis and the health of its banks.
A rise in eurozone business and consumer confidence to its highest level in more than two years bolstered sentiment in early trade and then a succession of strong company results kept them going for most of the day.
In London, the FTSE 100 index of leading shares closed down 5.73 points, or 0.11 per cent, at 5313.95.
In Paris, the CAC 40 dropped 0.50 per cent to 3651.91 points and in Frankfurt the DAX lost 0.72 per cent to finish at 6134.70 points.
Commodities
Oil prices rose Thursday as better-than-expected earnings from Exxon Mobil Corp, Southwest Airlines Co and others bolstered hope for an improving economy.
Benchmark crude for September delivery rose $US1.37 to settle at $US78.36 a barrel on the New York Mercantile Exchange.
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Gold for December delivery rose $US8.80 to settle at $US1171.20 an ounce.
A weaker US dollar also helped commodity prices. Since most commodities are priced in US dollars, a weaker greenback makes them more attractive to overseas buyers.
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"Mogi" Munkhdul Badral
CPS International
Email: mogi@cpsinternational.mn
Mobile: +976-99996779
CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based ASX Licensed Financial Services Company. To trade ASX stocks, feel free to contact me at mogi@cpsinternational.mn or +976-9999-6779.
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