CMC Markets Weekly Report

US sharemarkets ended mixed on Friday with technology shares under-performing. The Dow and Nasdaq stock gauges fell on Friday as disappointing results from Microsoft and Google dragged on the market, while the S&P 500 index edged up to end at a second straight record high. Dow Jones industrial average lost 0.03 percent at 15,543.74. Standard & Poor's 500 added 0.16 percent to 1,692.09 and Nasdaq Composite Index lost 0.66 percent at 3,587.61

By CMC Markets · 22 Jul 2013

By CMC Markets ·
22 Jul 2013

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In commodity markets, oil prices traded mixed on Friday amid a brighter US economic outlook and falling US crude stockpiles. New York's main contract, West Texas Intermediate for delivery in August, closed at $US108.05 ($A118.28) a barrel, only a US cent higher than Thursday's settlement. The European benchmark contract, Brent North Sea crude for September, fell 63 US cents to $US108.07 a barrel

Gold futures have climbed to a four-week high after Federal Reserve chairman Ben Bernanke's re-assurance there is no set timetable for a wind-down of the bank's bond-buying program. The most actively traded contract, for August delivery, on Friday rose $US8.70, or 0.7 per cent, to settle at $US1,292.90 a troy ounce on the Comex division of the New York Mercantile Exchange, the highest since June 19

Base metals on the London Metal Exchange (LME) have closed mostly higher, tracking a stronger euro in summer-thinned trade, although analysts say the prospect of oversupply and vulnerable demand could weigh on prices in the longer term. At the close of open-outcry ring trading on Friday, three-month copper was 0.1 percent higher on the day at $US6,915 a metric ton. Aluminium and nickel both closed 1.1 percent higher at $US1,825 a ton and $US14,155 a ton, respectively.

In the week ahead, it's a relatively quiet week for Australia on the economic front. Q2 CPI figures released on Wednesday will be the primary focus. In the U.S. we have Chicago Fed national activity and existing home sales tonight. Home price index and the Richmond Fed manufacturing index is expected on Tuesday along with new home sales on Wednesday. On Thursday durable goods numbers are released and Friday, July consumer confidence.

In company news this week, Australian Foundation Investment Company (AFI) full year results, Macquarie Atlas Roads (MQA) June quarter traffic report. Tuesday, Fortescue Metals Group (FMG) fourth quarter production. Wednesday, Australand Property Group (ALZ) half year results Thursday: Macquarie Group (MQG) annual general meeting, OceanaGold (OGC) first half results, Newcrest Mining (NCM) quarterly results, OZ Minerals (OZL) June quarter report and Friday PanAust (PNA) June quarter report, Intrepid Mines (IAU) first half results.

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Frequently Asked Questions about this Article…

What was the performance of US sharemarkets last Friday and which indexes should everyday investors watch?

US sharemarkets finished mixed last Friday: the Dow Jones Industrial Average dipped 0.03% to 15,543.74, the Nasdaq Composite fell 0.66% to 3,587.61, while the S&P 500 edged up 0.16% to 1,692.09 and closed at its second straight record high.

How did technology stocks influence the market this week and which companies were mentioned?

Technology shares under‑performed and weighed on market sentiment after disappointing results from Microsoft and Google, which dragged on the Dow and Nasdaq despite the S&P 500 reaching another record.

What happened to oil prices and what factors were affecting them?

Oil traded mixed: New York’s West Texas Intermediate (August) closed at US$108.05 a barrel and Brent (September) fell to US$108.07 a barrel. Prices were influenced by a brighter US economic outlook and falling US crude stockpiles.

Why did gold prices rise and what level did they reach?

Gold futures climbed to a four‑week high after Federal Reserve chairman Ben Bernanke said there was no set timetable to wind down the Fed’s bond‑buying program. The August gold contract rose US$8.70 (0.7%) to settle at US$1,292.90 per troy ounce.

How did base metals trade and what should investors be aware of in the metal markets?

Base metals on the London Metal Exchange closed mostly higher, helped by a stronger euro in thin summer trade. Three‑month copper was about US$6,915/ton, aluminium US$1,825/ton and nickel US$14,155/ton. Analysts cautioned that potential oversupply and fragile demand could pressure prices over the longer term.

Which Australian economic release should investors focus on this week?

Australian investors should watch the Q2 Consumer Price Index (CPI) figures due Wednesday — this is the primary domestic data point for the week and can influence inflation expectations and market reaction.

What US economic data are scheduled this week that everyday investors should monitor?

Key US releases this week include: Chicago Fed national activity and existing home sales (tonight), home price index and the Richmond Fed manufacturing index on Tuesday, new home sales on Wednesday, durable goods on Thursday and July consumer confidence on Friday.

Which company results and corporate events are coming up this week that investors should note?

This week’s corporate calendar includes Australian Foundation Investment Company (AFI) full‑year results and Macquarie Atlas Roads (MQA) June quarter traffic report; Tuesday: Fortescue Metals Group (FMG) Q4 production; Wednesday: Australand Property Group (ALZ) half‑year results; Thursday: Macquarie Group (MQG) annual general meeting, OceanaGold (OGC) first‑half results, Newcrest Mining (NCM) quarterly results and OZ Minerals (OZL) June quarter report; Friday: PanAust (PNA) June quarter report and Intrepid Mines (IAU) first‑half results.