ASX Stock and CFD Report 2-7-09

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The SFE Futures were up 16 points overnight. BHP and RIO both up in ADR form overnight, up 1.41% and 0.07%. BHP closed at the equivalent of 3432c, up 42c on last night’s close. Metals well up – Copper up 2.53%, Nickel up 7.36%, Zinc up 3.02%, Aluminium up 2.19%. Oil price down 50c to $69.32. Gold up $13 to $941. Up 1.5%. Bonds down – 10 year yield at 3.544% up from 3.523%. A$ up to 80.91c. VIX Volatility Index down 0.49% to 26.22.

Generally weak economic numbers with the ADP Employment report (a lead indicator for the main jobs numbers tonight) coming in below expectations. Construction spending also came in below expectations but the market seemed to take more notice of a slightly better than expected ISM Manufacturing report (sixth monthly gain on the trot) and slightly better pending home sales numbers. Financials down 0.5% – one of the worst sectors. Energy sector up 0.2%….was up 2.0% at its peak following a rise and fall in the oil price after higher than expected crude inventory numbers.

Commodities up on a weaker US$ after China said it would like to debate proposals for a new global reserve currency at next week’s G8 meeting (got to say….its not as if the world would trust any reserve currency involving the yuan).The US Dollar Index dropped 0.6%. CRB Commodities index up 0.5% on June Chinese factory index data suggesting the upcoming Chinese June quarter GDP stats would be OK (released mid July). Metals also helped by the Chinese Purchasing Managers’ Index (PMI) which was up to 53.2 (seasonally adjusted) in June, from 53.1 in May.

The market is up 23. We were up 36 at best. The SFE Futures were up 16 points overnight. Quiet day on the news front. The May trade deficit has come in at a bigger than expected minus $556m compared to expectations for a number of minus $125m. The deficit is up 97% on April.

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