Australian Stock Report - Market Pulse

Morning Market Analysis: September 21

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Publish date: Wed, 21 Sep 2011, 09:58 AM
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Welcome to MarketPulse, the Australian Stock Report's financial market blog. In the MarketPulse blog we aim to provide frequent updates on current events across the financial markets, including market wraps, articles in the news, opinions, reviews, financial education and finally our top tip of the week. The blog is published by the Australian Stock Report research and report editing team together with our very own "Passionate Trader", Carl Capolingua.

Global markets put in a mixed showing last night with gains on Europe offset by weakness in the US.

In Europe the FTSE added 104 points (+2%) whilst the CAC added 1.5% and the DAX surged 2.9%.

Stateside, the Dow Jones added seven points to settle at 11409 (0.1%) whilst the S&P 500 added 0.2% and the Nasdaq lost 0.9%.

US stocks opened up stronger on the back of the strength in Europe but lost momentum following developments in the eurozone which spooked investors.

The Swiss franc fell the most in two weeks against the euro amid speculation the Swiss National Bank will widen the currency's trading band.

The Canadian dollar touched a three-session low against the greenback after the IMF cut its forecast for global growth and reduced projections for Canada.

Crude oil rose for the first time in three sessions on speculation the Federal Reserve will take steps to bolster the US economy.

Oil added 1.3% to settle at US$86.92 a barrel, whilst gold also gained, adding 1.7% to settle at US$1809 a barrel.

In company news, DJS reported a 1.5% fall in FY11 net profit to $168.1 million. The result was in line with its guidance but the company said trading conditions are still tough.

Today's session will bring us data in the form of the Melbourne Institute leading index, at 10:30am, AEST.

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