Proactiveinvestors Australia

Wraps: Baillieu https://www.baillieu.com.au/

E.L. & C. Baillieu Stockbroking Ltd is a Participating Organisation of the Australian Stock Exchange Limited. The firm commenced business in 1889.  Since its inception, E.L. & C. Baillieu Stockbroking Ltd has encouraged and assisted private investors.

Tweet

 

Email

Email to a friend:

To:

Separate multiple addresses with commas.

From Email address:

Name: Please send me a copy Message:

Verification code

Enter the code from aboveRequired

Send

E.L. & C. Baillieu Morning Wrap; Crude-oil futures lower amid spate of negative news

Crude-oil futures settled lower amid a spate of negative news, including a report of ample crude supply, discouraging signs for economic growth and revelations of a $2 billion trading loss at J.P. Morgan Chase & Co.

Author: E.L. & C. Baillieu Stockbroking - by Andrew Thain
 

HEADLINES

- The Dow industrials edged lower to cap their biggest weekly retreat of the year, as a 9.3% drop in J.P. Morgan Chase's shares weighed on the blue-chip index.

- Spanish stocks fell on disappointment with the government's latest plan to clean up the country's troubled banks, but other markets ended a choppy session with modest gains following upbeat data on U.S. consumer sentiment.

- Crude-oil futures settled lower amid a spate of negative news, including a report of ample crude supply, discouraging signs for economic growth and revelations of a $2 billion trading loss at J.P. Morgan Chase & Co.

- Gold set a fresh 2012 low as investor demand for the dollar and mild U.S. inflation left less interest in the precious metal as an alternative asset.


US MARKETS

The Dow industrials edged lower to cap their biggest weekly retreat of the year, as a 9.3% drop in J.P. Morgan Chase's shares weighed on the blue-chip index.

The Dow Jones Industrial Average fell 34.44 points, or 0.3%, to 12820.60, erasing earlier gains after reports of a Securities and Exchange Commission review tied to at least $2 billion in trading losses at J.P. Morgan.

J.P. Morgan Chase fell $3.78, to $36.96, its biggest percentage slide since August. The drop accounted for 83% of the Dow's decline. The index fell 1.7% on the week, its worst weekly performance since mid-December.

In corporate news, Nordstrom slumped 2.57, or 4.8%, to 50.96, after the high-end department-store chain reported fiscal first-quarter earnings that missed analyst expectations, but it affirmed its full-year outlook.

Arena Pharmaceuticals rallied 2.70, or 74%, to 6.36, after a Food and Drug Administration panel recommended the approval of Arena's lorcaserin to treat obesity.

Nvidia jumped 79 cents, or 6.4%, to 13.21, after the graphics-chip maker reported fiscal first-quarter results that were well above expectations and provided a second-quarter revenue outlook that was above projections.


EUROPEAN MARKETS

Spanish stocks fell on disappointment with the government's latest plan to clean up the country's troubled banks, but other markets ended a choppy session with modest gains following upbeat data on U.S. consumer sentiment.

The Stoxx Europe 600 index rebounded from early losses to rise 0.4% Friday to 251.97, trimming the week's loss to 0.4%. U.S. stock indexes reversed earlier losses on the sentiment data to push into positive territory as European markets closed.


ASIAN MARKETS

Asian markets fell, capping a week of losses across the region, after disappointing China economic data added to worries over a slowdown in the world's second-largest economy, while banking shares dropped after J.P. Morgan reported a $2 billion trading loss.

Shares of Sony slumped 6.4% to its lowest level since 1980, despite posting a smaller than- expected loss for the year ending March 31, as some analysts questioned whether it can deliver strong growth in key markets like smartphones.

Japan's Nikkei was down 0.6% to 8953.31 while Korea's Kospi fell 1.4% to 1917.13. The Hang Seng Index in Hong Kong dropped 1.3% to 19964.63, bringing to an end its worst week since September. The China Shanghai SE Composite fell 0.6% to 2394.98.


AUSTRALIAN MARKETS

Australian shares lost ground, led down by mining and financial stocks, and recorded the worst weekly performance this year as appetite for riskier assets took a hit on US economic and eurozone worries.

Investors showed little reaction to Chinese inflation and production data. The annual rate of factory output grew more slowly than expected in April at 9.3 per cent, its weakest pace in three years.

Defensive stocks such as healthcare firms rose, led by blood products maker which ended up 1.4 per cent to $37.97. CSL also got a boost from a fall in the Aussie dollar to near parity.


OIL

Crude-oil futures settled lower amid a spate of negative news, including a report of ample crude supply, discouraging signs for economic growth and revelations of a $2 billon trading loss at J.P. Morgan Chase & Co.

Light, sweet crude futures for June delivery fell 1%, or 95 cents, to end at $96.13 a barrel on the New York Mercantile Exchange and were off 2.4% for the week. The day's decline was the seventh out of the last eight sessions.


METALS

Gold set a fresh 2012 low as investor demand for the dollar and mild U.S. inflation left less interest in the precious metal as an alternative asset.

The most actively traded gold contract, for June delivery, fell $11.50, or 0.7%, to settle at $1,584 a troy ounce on the Comex division of the New York Mercantile Exchange, the lowest settlement since Dec. 30.

Andrew Thain can be contacted by email; CLICK HERE.

Baillieu HOME PAGE

 
Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

Sign up to Proactive Investors

Comments from Proactive Investors readers

• Fill in your details below:

Verification Code

Reload image