ASX
An investor is reflected in a window as he looks at boards displaying stock prices and an advertisement for zero percent interest rate for purchasing a car at the Australian Securities Exchange in central Sydney, Australia, July 8, 2015. Reuters/David Gray
  • In US economic data, orders for durable or long-lasting goods fell by 2.0% in August as expected by economists. Excluding transport goods, orders were unchanged. But new home sales rose by 5.7% in August (forecast +1.6%) and new claims for unemployment insurance rose by just 3,000 last week to 267,000. Economists had tipped a result near 271,000.
  • European shares fell again on Thursday with Volkswagen's emissions scandal at the focus on investor attention. The FTSEurofirst 300 index fell by 2.1% with the UK FTSE lower by 1.2% while the German Dax lost 1.9%. But shares in Volkswagen actually rose by 0.6%. In London trade, mining shares fell despite generally higher metal prices with shares in BHP Billiton down by 2.2% while Rio Tinto fell by 1.6%.
  • US sharemarket indexes fell on Thursday but ended off the lows. The biggest drag on key indexes was Caterpillar, its shares falling by 6.3% after downgrading sales and revenue expectations. The equipment maker said it could as many as 10,000 jobs. The Dow Jones index ended lower by almost 79 points or 0.5% after being down 263 points at one stage. The S&P 500 lost 0.3% and the Nasdaq lost 18 points or 0.4%.
  • US long-term treasury prices rose modestly (yields lower) with bonds gaining favour amongst investors as equities fell again across Europe and the US. US Treasury sold $29 billion of an auction of 7-year notes with indirect bidders buying their largest share of an offering since December 2010. But traders were generally focussed on a speech by the Federal Reserve chair after market close. US 2 year yields fell by 3 points to 0.688% with US 10 year yields down by 2 points to 2.13%.
  • The US dollar was mixed again against major currencies in European and US trade. The euro rose from lows near US$1.1180 to highs near US$1.1295, but reversed course to end US trade near US$1.1220. The Aussie dollar rose from lows near US69.40c to highs around US70.40c, ending US trade near US70.25c. And the Japanese yen held between 119.25 yen per US dollar and JPY120.12, ending US trade near JPY120.00.
  • World oil prices rose modestly on Thursday in response to a report noting lower US crude stock levels. Reuters quotes data from market intelligence firm Genscape, estimating a drawdown of 625,000 barrels out of the Cushing, Oklahoma delivery point for US crude in the past week. Brent crude rose by US42c or 0.9% to US$48.17 a barrel while US Nymex crude rose by US43c or 1.0% to US$44.91 a barrel.
  • Base metal prices were generally higher, lifting as much as 2.0% on the London Metal Exchange with tin leading the way but copper and lead fell by 0.1%. The Comex gold futures price rose by US$22.30 or 2.0% to US$1,153.80 per ounce. Iron ore was unchanged at US$56.80 a tonne.

Ahead: In Australia, no major economic data is released. In the US, the Federal Reserve chair, Janet Yellen, delivers a speech at 7am AEST (5pm New York time). Revised economic growth data is released together with consumer sentiment figures.

CommSec

[Kick off your trading day with our newsletter]
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily