Market Update & Important Indicators
Stocks slumped on Thursday in a selloff led by shares of media companies, which have reported a flurry of disappointing earnings amid concerns about the shift away from traditional television. A 12% decline in Viacom Inc. dragged down the Nasdaq Composite Index, which was 1.5% lower at 5062. The Dow fell 0.7% to 17,420 and S&P 500 dropped 0.8% to 2,084.
Sharp falls in big Australian bank stocks dragged the local equity market into the red for a second day Thursday, as Australia & New Zealand Banking Group's plans to raise A$3 billion highlighted how much more capital the country's lenders need. Commonwealth Bank of Australia Ltd. fell 3.2% and Westpac Banking Corp. lost 3%. National Australia Bank, which earlier this year moved to raise A$5.5 billion, partly to lift its capital position, declined 2.2%. Negative Australian unemployment figures sent the AUD weaker. Unemployment rose to 6.3% from 6.1% in the previous month. Most concerning was the rise in unemployment in Western Australia, the mining state, which jumped to 6.4% from 5.9% in June.
China's shares fell after bank shares pressured Australia on Thursday, but Japan's market rose ahead of a key jobs report in the U.S. due later this week. Hong Kong's Hang Seng Index closed 0.6% lower and a gauge of Chinese companies listed in the city fell 0.3%.
European stocks headed lower Thursday, led by weakness in the energy sector, as investors focused on a mixed bag of corporate earnings. Oil and gas companies on the Stoxx Europe 600 were down 1.0%.
Iron ore fell 0.7% yesterday to US$56.40/dmt and gold rose 0.5% to US$1,090/oz. Metals on the LME were down with the exception of copper which gained 0.2% to US$2.35/lb. Zinc fell 1.4% to US$0.84/lb. The AUD/USD is trading at 0.735.
Recent Contacts & Presentations
Austal (ASB), Resolute (RSG), Pacifico (PMY), Kingsgate (KCN), Troy (TRY), Northern Star (NST), Sandfire (SFR), Regis (RRL), Saracen (SAR), Sino Gas & Energy (SEH), Dacian (DCN), Buru Energy (BRU), Carnarvon Petroleum (CVN), Otto Energy (OEL), Empire Oil & Gas (EGO), Pura Vida Energy NL (PVD), High Peak Royalties (HPR), Karoon Gas (KAR), Austex Oil (AOK), Central Petroleum (CTP), Senex Energy (SXY), Newmont, Coventry (CYY)