| Australian stock market closes down on global credit concerns
DESPITE a strong lead from Wall Street and higher commodity prices, the share market closed in negative territory, reversing earlier intraday gains, on cautiousness about global investments markets. At the 4.15pm AEDT close, the benchmark S&P/ASX200 index was down 20 points, or 0.33 per cent, to 5960, and the All Ordinaries had shed 21.1 points, or 0.35 per cent, to 6019.8. On the Sydney Futures Exchange, the March share price index was down 15 points to 5951 on a volume of 27,555 contracts. ABN Amro Morgans Ipswich manager Tony Russell said nervousness ruled the local market today. "The market is very jittery, we've been swinging from positive to negative.'' Mr Russell said Australian investors were cautious about the earnings results coming from the United States. "We'll see some of the major financial institutions reporting in the US tonight, so the market might be waiting to see what happens there.'' Mr Russell said trading conditions were thin, with many investors still on holiday.
Soft miners, banks keep lid on stocks
THE Australian stock market was little changed at noon amid subdued trading, although the big miners were weaker after base metals prices came under pressure again. The benchmark S&P/ASX200 index was 0.4 points higher at 6334.7, while the All Ordinaries had gained 1.1 points to 6396.2. On the Sydney Futures Exchange, the December share price index contract was seven points lower at 6364 on a volume of 5,580 contracts. Austock Securities senior client adviser Michael Heffernan said the market lacked firm direction. "It's been a bit choppy, which is not surprising given the fact that is no lead from our normal leader, which is the US," Mr Heffernan said. "Commodity prices were a bit on the soft side.' "It is interesting that the major drivers of our market, the banks and financial sectors, are in negative territory." Following a round of profit-taking in the past couple of sessions, it could be time for investors to buy again, Mr Heffernan said.
Oil price hits new record of $US101.32 a barrel
WORLD oil prices hit a new record of $US101.32 ($110.48) a barrel in Asian trading today on renewed concerns over global crude oil supplies. New York's main oil futures contract, light sweet crude for delivery in March, closed overnight up 73 cents at an all-time high of $US100.74. The latest price spike burst Tuesday's record price of $US100.10 and record close at $US100.01. In London, Brent North Sea crude for April delivery settled 14 cents lower at $US98.42, after striking a record $US98.70 Tuesday. Prices have soared amid growing speculation OPEC, which supplies about 40 per cent of the world's oil, may cut output at its March 5 meeting in Vienna, anticipating a fall in demand at the end of the northern hemisphere winter and a US economic slowdown, analysts said. "Supply worries and comments by some OPEC members that the group might not raise output at their March meeting provided the catalyst for the sharp rally," said Barclays Capital analyst Kevin Norrish.
Pressure mounts for new controls on oil futures speculators
Sean Cota runs a family-owned fuel oil business in Bellows Falls, Vt., and has been active in the futures markets for 20 years, locking in prices to protect both himself and his customers. But over the past five years, he has watched in amazement -- and growing anger -- as speculators flooded into the market. It has created tremendous volatility and, he believes, driven up prices for crude oil, heating oil and a host of other commodities. As prices hover near record levels this year, his customers are bearing the brunt -- turning down their thermostats, taking longer to pay their bills and even using credit cards to pay for home heating. "All of these things are having a huge impact on people for something that is just not justified by supply and demand," Cota said.
Dow up 90 despite inflation, growth worries
Stocks climbed out of a hole Wednesday, closing higher despite conflicting worries about inflation and economic growth.
Advances by technology stocks, led by an 8 percent rally in the shares of Hewlett-Packard, and energy stocks, reflected in a nearly 2 percent gain by Chevron, helped lead the market higher.
In futures trading, crude oil continued its assault on triple-digit barrel prices. Oil for March delivery rose 73 cents a barrel, to $100.74, its second straight record-high close, after trading as high as $101.32 during the session.
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Oil nudges higher after $2 fall, eyes dollar
SINGAPORE: Oil rose marginally in thin trade on Friday after falling sharply a day ago on concerns about the US economy, the strengthening dollar and the market's failure to break above a key resistance level.
US light sweet crude futures for January delivery rose 36 cents to $92.61 a barrel after falling by $2.14 a day ago, halving gains from Wednesday when the market was buoyed by a US oil stock draw and a global central bank cash injection.
London Brent crude rose 41 cents to $92.53. Oil prices touched a two-week high of $94.85 a barrel on Wednesday and Thursday, which may have triggered the reversal.
"We have been feeling that there seems to be quite heavy resistance at $95 at the moment, we failed to break above it for two days, which is why people may have taken profits," said Tetsu Emori, a fund manager at Astmax Futures Co Ltd in Tokyo.
Shock for food prices as wheat futures rocket
THE price of wheat on the JSE futures exchange broke through R4000 a ton yesterday to a new record on supply concerns, making increases in the price of bread and other foodstuffs inevitable. After hovering around R3900 a ton for some time, the future prices for delivery in May broke the psychological barrier of R4000 a ton, and the price for delivery in July closed at R4000, although it was as high as R4030 during the day yesterday. Wheat prices have now more than doubled from R1878 a ton a year ago, and further increases are expected. Milling and bread companies warned yesterday that with the steep hike in the price of wheat, further increases in the price of bread were unavoidable.
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