CMC Markets Weekly Report
The U.S market fell on Friday, as rising unrest in the Ukraine offset a better-than-expected April jobs report.
The U.S market fell on Friday, as rising unrest in the Ukraine offset a better-than-expected April jobs report.
The U.S. Labour Department reported the creation of 288,000 jobs in April from an upwardly revised 203,000 in March, with the jobless rate at 6.3 per cent. A poll by Reuters has expectations at an addition of 210,000 jobs during April and the jobless rate at 6.6 per cent.
The Dow Jones Industrial Average declined 45.98 points, or 0.3 per cent, to 16,512.890. The S&P500 finished down 2.54 points, or 0.1 per cent, to 1,881.14 and the Nasdaq lost 3.55 points, or nearly 0.1 per cent, to 4,123.90.
In commodity markets, oil prices were higher following on-going tensions in the Ukraine. New York's benchmark, West Texas Intermediate for delivery in June, climbed 34 cents to $US99.76 a barrel on Friday. In London, Brent North Sea crude for June added 83 cents to close at $108.59 a barrel.
Moscow's warning to Kiev over its attack on pro-Russia secessionists in Ukraine's east raised more worries over a Russian intervention. On Friday, Russia requested an emergency session of the United Nations Security Council over a Ukrainian army operation.
Gold closed at a three-week high with the most actively traded contract, for June delivery, on Friday rose $US19.50, or 1.5 per cent, to settle at $US1,302.90 a troy ounce on the Comex division of the New York Mercantile Exchange.
Copper futures closed higher on the London Metal Exchange (LME), boosted by a stronger-than-expected US jobs report. The LME's flagship three-month copper contract was up 1.1 per cent at $US6,719 a metric ton. The rest of the base-metals was mixed, with aluminium closing 0.1 per cent lower at $US1,787 a ton and nickel falling 0.1 per cent to $US18,250 a ton.
The Australian dollar has regained ground following losses on the back of stronger-than-expected US jobs figures. At 0700 AEST on Monday, the local currency was trading at 92.87 US cents, up from 92.71 cents on Friday.
Locally, in economic news on Monday, the Australian Bureau of Statistics (ABS) releases building approvals for March, while the ANZ job advertisements series for April is due out, as is TD Securities-Melbourne Institute inflation gauge, also for April and the Australian Industry Group Australian Performance of Services Index (PSI) for the same month.
In equities news, Westpac posts first half results and Leighton Holdings first quarter results.
In Australia, the market on Friday closed slightly higher as investors awaited the release of key US jobs figures.
The benchmark S&P/ASX200 index was up 9.3 points, or 0.17 per cent, at 5,458.1 points.
The broader All Ordinaries index was up 8.4 points, or 0.15 per cent, at 5,438.8 points.
Frequently Asked Questions about this Article…
The U.S. stock market experienced a decline recently, with the Dow Jones Industrial Average falling by 45.98 points, the S&P500 down by 2.54 points, and the Nasdaq losing 3.55 points. This was influenced by rising unrest in Ukraine despite a better-than-expected April jobs report.
The ongoing tensions in Ukraine have led to higher oil prices, with West Texas Intermediate and Brent North Sea crude both seeing increases. Additionally, gold prices reached a three-week high due to the geopolitical unrest.
The U.S. jobs report, which showed the creation of 288,000 jobs in April, was stronger than expected and contributed to a mixed reaction in the markets. While it boosted copper futures, it also coincided with declines in major U.S. stock indices due to geopolitical concerns.
The Australian dollar regained some ground following losses, trading at 92.87 US cents, up from 92.71 cents. This recovery was influenced by the stronger-than-expected U.S. jobs figures.
Recent trends in the commodity markets include a rise in oil prices due to Ukraine tensions, an increase in gold prices reaching a three-week high, and a boost in copper futures following a strong U.S. jobs report. However, aluminium and nickel saw slight declines.
In Australia, upcoming economic news includes the release of building approvals for March by the Australian Bureau of Statistics, the ANZ job advertisements series for April, the TD Securities-Melbourne Institute inflation gauge, and the Australian Industry Group Australian Performance of Services Index (PSI) for April.
The Australian stock market closed slightly higher recently, with the S&P/ASX200 index up by 9.3 points and the All Ordinaries index up by 8.4 points. This was as investors awaited key U.S. jobs figures.
In the metals market, copper futures closed higher due to a strong U.S. jobs report, while aluminium and nickel saw slight declines. The LME's three-month copper contract rose by 1.1 percent.
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