Oil stabilises while global markets plateau
There was little movement in global indices overnight. While the oil price stabilised and made a slight gain, it wasn’t enough to reinvigorate confidence in the sector.
The US healthcare sector, particularly hospital operators, responded positively to developments regarding the health care bill. However, there were few other catalysts, and the strong share price performances from these stocks wasn’t enough to pull the Dow into positive territory.
The index was off 12 points, closing at 21,397 points. The NASDAQ was relatively flat, only gaining two points to close at 6236 points.
While the stabilisation of the oil price only resulted in minor gains for the big oil companies it was enough to provide some late session momentum which saw the FTSE 100 close at 7439 points after slumping to less than 7400 points earlier in the day.
It was a similar story in mainland European markets with the DAX and the Paris CAC 40 both gaining 0.1% to close at 12,794 points and 5281 points respectively.
Oil closed at US$42.73 per barrel.
There was also very little movement in the gold price as it increased from the previous day’s close of US$1247 per ounce to US$1252 per ounce.
Iron ore came off 0.5% to US$56.53 per tonne, once again a minor move that is unlikely to impact companies exposed to the commodity.
Base metals traded higher across the board with zinc and lead leading the way.
Zinc was particularly impressive as it spiked 2.5% to close at US$1.22 per pound, a level that could be viewed favourably by technical analysts given that it represents a break above the US$1.20 per pound mark, placing it within striking distance of US$1.24 per pound, a level which it last traded at in early April.
Lead rallied 1% to close at US$0.98 per pound.
Copper remained relatively flat at US$2.59 per pound.
There was also little movement in the nickel price as it closed at US$4.07 per pound.
The Australian dollar is fetching US$0.754.
This article is General Information and contains only some information about some elements of one or more financial products. It may contain; (1) broker projections and price targets that are only estimates and may not be met, (2) historical data in terms of earnings performance and/or share trading patterns that should not be used as the basis for an investment as they may or may not be replicated. Those considering engaging with any financial product mentioned in this article should always seek independent financial advice from a licensed financial advisor before making any financial decisions.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.