June 8, 2011
Overseas Market

US Federal Reserve Chairman Bernanke, yesterday at a banking conference acknowledged that the US economy is slowing down than expected and losing quite a little momentum but supported that there was no indication of considering a further stimulus. With the bearish comments, the US sharemarket fell, investors moved to selling their equities after Bernanke’s comments. The Dow Jones fell 19.15 pts or 0.16% to 12,070.81, the Nasdaq dropped 1.0 pts or 0.04% to 2,701.56, the S&P fell 1.23 pts or 0.1% to¬† 1,284.94.

The US dollar posted losses against major currencies with the announced slowdown by Chairman Bernanke. The Euro trading near at US$1.4690, the Aussie dollar trading near at US107.15 cents, the Japanese yen was trading near at JPY80.10.

European markets fell for the fifth straight day as well, after rising concerns about the European sovereign debt. The FTSEurofirst index fell 0.1%, the German DAX rose 0.3% and the UK FTSE gained 0.03%.

Commodities basically rose with the weak US dollar, crude oil prices rose due to uncertainty in increased output, base metal prices rose higher with weak US dollar, however gold prices fell.

Again, choppy overseas market, looks like we are in for another bad day with a board of red. Hopefully the consumer sentiments and housing finance data that is to be released might prove positive for the Australian market.

All information provided is a general account of the day’s trading and not personal recommendation to buy, hold or sell any particular stock.

  1. wealthadvice posted this