Australian Securities Exchange (ASX)
People walk past the Australian Securities Exchange (ASX) building in central Sydney October 20, 2008. Reuters/Daniel Munoz
  • In US economic data, the economy grew at a 2.3% annual pace in the June quarter after lifting 0.6% in the March quarter. Economists had tipped a 2.6% annual gain but the March quarter result was revised higher from a previously reported 0.2% contraction. New claims for unemployment insurance (jobless claims) rose by 12,000 to 267,000 in the latest week, short of forecasts.
  • European shares rose on Thursday in response to encouraging earnings results. The FTSEurofirst 300 rose by 0.6% with the German Dax up by 0.4% while the UK FTSE was higher by 0.6%. In London trade mining shares were slightly higher with BHP Billiton up by 0.2% and Rio Tinto up by 0.1%.
  • US sharemarkets fell in early trade but recovered over the morning session before travelling sideways in afternoon trade. Investors dissected the economic growth figures and the flow of earnings results. The Dow Jones fell by 5 points or less than 0.1% after initially being down 111 points. The S&P 500 was up by 0.1 point or less than 0.1%. But the Nasdaq gained 17 points or 0.3%.
  • US treasury prices were mixed on Thursday as investors dissected the latest economic growth figures. The March quarter result was revised up but the June quarter result fell short of forecasts. US 2 year yields rose by 2 points to 0.73% while US 10 year yields fell by 2 points to 2.26%.
  • Major currencies were softer against the greenback in European and US trade. The euro fell from highs near US$1.0980 to lows near US$1.0895 and ended US trade at US$1.0930. The Aussie dollar fell from highs near US73.20c to lows around US72.60c and ended US trade near US72.90c. And the Japanese yen eased from 124.03 yen per US dollar to JPY124.56, ending US trade around JPY124.15.
  • World oil prices were lower on Thursday. A stronger US data offset US data showing an unexpectedly large 4 million barrels drawdown of crude in the latest week. A stronger US dollar makes oil more expensive for oil buyers in Asia and Europe. Brent crude fell by US7 cents or 0.1% to US$53.31 a barrel while US Nymex crude fell by US27c or 0.6% to US$48.52 a barrel.
  • Base metal prices were lower on the London Metal Exchange on Thursday, falling between 0.4-2.0% with tin faring best and nickel down the most. The Comex gold futures price fell by US$7.80 or 0.7% to US$1,088.40 per ounce. Iron ore fell by US70c or 1.3% to US$54.60 a tonne on Thursday.

Ahead: In Australia, private sector credit data is released with the producer price indexes. In the US, data on employment costs is released with consumer sentiment and the Chicago purchasing managers index. On Saturday in China the official purchasing managers indexes for both services and manufacturing is released.

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