Australian Stock Report - Market Pulse

Morning Market Update: Another Lacklustre Night

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Publish date: Thu, 26 Sep 2013, 10:28 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.

Concerns over a budget standoff in Washington triggered more declines on Wall Street overnight, with the S&P500 capping its longest losing streak of the year.

Investors are growing fearful that Congress and President Obama will fail to reach a deal that will avert a government shutdown by October 1.

Moreover, little headway has been made in negotiating an increase to the US debt ceiling, which is likely to be hit in mid-October and potentially ignite a new about of financial market turmoil.

The budget drama overshadowed data showing a rebound in durable goods orders last month, signalling US businesses are tentatively looking to expand despite the fiscal uncertainty.

The Dow Jones shed 62 points (-0.4%) to 15273, the S&P500 slipped four points (-0.3%) to 1693 and the Nasdaq dropped seven points (-0.2%) to 3761.

There were more losses in commodity markets Gold tallied a third consecutive decline on concerns the Fed will stick to its guns in tapering stimulus despite the US budget uncertainty.

Bullion futures fell 0.7% to US$1318 an ounce.

A surprise rise in weekly US crude inventories contributed to a fifth straight loss in oil prices. Additional selling pressure came from a UN speech by Iran's President, which seemingly hosed down tensions in the Middle East. Front month oil futures settled 0.5% lower to US$102.66 a barrel.

The US dollar was mostly weaker against other currencies, with the exception of the Aussie, which fell 0.2% to 93.68 US cents on speculation the RBA has room for another rate cut by the end of the year.

There is no major economic data due for release today.

 

Morning Market Update: Another Lacklustre Night is a post from: Australian Stock Report Market Pulse Blog

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